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

§ Cost of goods sold equals 65 percent of sales 

§ Inventory of $450,000 

§ Sales of $1 million

What is the value of this firm’s average inventory processing period using a 365-day year?

A)   0.7 days.

B)   0.4 days.

C)   252.7 days.

D)   1.4 days.

42.Which of the following ratios would NOT be used to evaluate how efficiently management is utilizing the firm’s assets?

A)   Payables turnover.

B)   Gross profit margin.

C)   Total asset turnover.

D)   Fixed asset turnover.

43.The cash conversion cycle is the:

A)   length of time it takes to sell inventory.

B)   length of time it takes the firm to pay the credit extended to it for purchases.

C)   sum of the time it takes to sell inventory and collect on accounts receivable, less the time it takes to pay for credit purchases.

D)   sum of the time it takes to sell inventory and the time it takes to collect accounts receivable.

44.Assume a firm with a debt to equity ratio of 0.50 and debt equal to $35 million makes a commitment to acquire raw materials with a present value of $12 million over the next 3 years. For purposes of analysis the best estimate of the debt to equity ratio should be:

A)   0.343.

B)   0.500.

C)   0.671.

D)   0.573.

45.The main difference between the current ratio and the quick ratio is that the quick ratio excludes:

A)   cost of goods sold.

B)   inventory.

C)   sales.

D)   assets.

答案和详解如下：

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

§ Cost of goods sold equals 65 percent of sales 

§ Inventory of $450,000 

§ Sales of $1 million

What is the value of this firm’s average inventory processing period using a 365-day year?

A)   0.7 days.

B)   0.4 days.

C)   252.7 days.

D)   1.4 days.

The correct answer was C)

COGS = (.65)($1,000,000) = $650,000

Inventory turnover = CGS/Inventory = $650,000/$450,000 = 1.4444

Average Inventory Processing Period = 365/1.4444 = 252.7 days

42.Which of the following ratios would NOT be used to evaluate how efficiently management is utilizing the firm’s assets?

A)   Payables turnover.

B)   Gross profit margin.

C)   Total asset turnover.

D)   Fixed asset turnover.

The correct answer was B)

The gross profit margin is used to measure a firm's operating profitability, not operating efficiency.

43.The cash conversion cycle is the:

A)   length of time it takes to sell inventory.

B)   length of time it takes the firm to pay the credit extended to it for purchases.

C)   sum of the time it takes to sell inventory and collect on accounts receivable, less the time it takes to pay for credit purchases.

D)   sum of the time it takes to sell inventory and the time it takes to collect accounts receivable.

The correct answer was C)

Cash conversion cycle = (average receivables collection period) + (average inventory processing period) - (payables payment period)

44.Assume a firm with a debt to equity ratio of 0.50 and debt equal to $35 million makes a commitment to acquire raw materials with a present value of $12 million over the next 3 years. For purposes of analysis the best estimate of the debt to equity ratio should be:

A)   0.343.

B)   0.500.

C)   0.671.

D)   0.573.

The correct answer was C)

The original debt/equity ratio = 35/70 = 0.5. Now adjust the numerator but not the denominator. Why? You have commitments (liabilities) but no new equity because (non-current) liabilities and assets are increased by the same amount. D/E = (35 + 12) / 70 = 0.671

45.The main difference between the current ratio and the quick ratio is that the quick ratio excludes:

A)   cost of goods sold.

B)   inventory.

C)   sales.

D)   assets.

The correct answer was B)

Current ratio = current assets/current liabilities = [cash + marketable securities + receivables + inventory]/ current liabilities

Quick ratio = [cash + marketable securities + receivables]/current liabilities