Reading 41: Financial Analysis Techniques - LOS d ～ Q31- black, class, border, company, following

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31.An analyst has gathered the following information about a company:

Balance Sheet
Assets
	Cash	100
	Accounts Receivable	750
	Marketable Securities	300
	Inventory	850
	Property, Plant & Equip	900
	Accumulated Depreciation	(150)
Total Assets		2750
Liabilities and Equity
	Accounts Payable	300
	Short-Term Debt	130
	Long-Term Debt	700
	Common Stock	1000
	Retained Earnings	620
Total Liab. and Stockholder's equity		2750
Income Statement
Sales		1500
COGS		1100
Gross Profit		400
SG&A		150
Operating Profit		250
Interest Expense		25
Taxes		75
Net Income		150

What is the receivables turnover ratio?

A)   2.0.

B)   1.0.

C)   1.5.

D)   0.5.

 

32.An analyst has gathered the following information about a company:

Balance Sheet
Assets
	Cash	100
	Accounts Receivable	750
	Marketable Securities	300
	Inventory	850
	Property, Plant & Equip	900
	Accumulated Depreciation	(150)
Total Assets		2750
Liabilities and Equity
	Accounts Payable	300
	Short-Term Debt	130
	Long-Term Debt	700
	Common Stock	1000
	Retained Earnings	620
Total Liab. and Stockholder's equity		2750
Income Statement
Sales		1500
COGS		1100
Gross Profit		400
SG&A		150
Operating Profit		250
Interest Expense		25
Taxes		75
Net Income		150

Determine the current ratio and the cash ratio.

Current Ratio

Cash Ratio

 

A)                    2.67                                       1.07

B)                    3.95                                       2.14

C)                    4.65                                       0.93

D)                    1.98                                       1.86

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答案和详解如下：

31.An analyst has gathered the following information about a company:

Balance Sheet
Assets
	Cash	100
	Accounts Receivable	750
	Marketable Securities	300
	Inventory	850
	Property, Plant & Equip	900
	Accumulated Depreciation	(150)
Total Assets		2750
Liabilities and Equity
	Accounts Payable	300
	Short-Term Debt	130
	Long-Term Debt	700
	Common Stock	1000
	Retained Earnings	620
Total Liab. and Stockholder's equity		2750
Income Statement
Sales		1500
COGS		1100
Gross Profit		400
SG&A		150
Operating Profit		250
Interest Expense		25
Taxes		75
Net Income		150

What is the receivables turnover ratio?

A)   2.0.

B)   1.0.

C)   1.5.

D)   0.5.

The correct answer was A)

Receivables turnover = 1,500(sales)/ 750(receivables) = 2.0

 

32.An analyst has gathered the following information about a company:

Balance Sheet
Assets
	Cash	100
	Accounts Receivable	750
	Marketable Securities	300
	Inventory	850
	Property, Plant & Equip	900
	Accumulated Depreciation	(150)
Total Assets		2750
Liabilities and Equity
	Accounts Payable	300
	Short-Term Debt	130
	Long-Term Debt	700
	Common Stock	1000
	Retained Earnings	620
Total Liab. and Stockholder's equity		2750
Income Statement
Sales		1500
COGS		1100
Gross Profit		400
SG&A		150
Operating Profit		250
Interest Expense		25
Taxes		75
Net Income		150

Determine the current ratio and the cash ratio.

Current Ratio

Cash Ratio

 

A)                    2.67                                      1.07

B)                    3.95                                      2.14

C)                    4.65                                      0.93

D)                    1.98                                      1.86

The correct answer was C)

Current ratio = [100(cash) + 750(accounts receivable)+ 300(marketable securities) + 850(inventory) ]/[300(AP) + 130(short term debt)] = 2000/430 = 4.65

Cash ratio = [100(cash) + 300(marketable securities)]/[300(AP) + 130(short term debt)] = 400/430 = 0.93

mcdullpong

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shuru1207

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sir_2005

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zoomair

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