Reading 41: Financial Analysis Techniques - LOS d ～ Q36- following, black, about

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36.An analyst has gathered the following information about a firm:

§ Net sales of $500,000

§ Cost of goods sold equals $250,000 

§ EBIT of $150,000 

§ EAT of $90,000

What is this firm’s operating profit margin?

A)   18%.

B)   50%.

C)   60%.

D)   30%.

 

37.Given the following income statement:

Net Sales	200
Cost of Goods Sold	55
Gross Profit	145
Operating Expenses	30
Operating Profit (EBIT)	115
Interest	15
Earnings Before Taxes (EBT)	100
Taxes	40
Earnings After Taxes (EAT)	60

What are the gross profit margin and operating profit margin?

Gross Profit Margin

Operating Profit Margin

 

A)                           0.379           0.725

B)                           2.630           1.226

C)                           1.379           2.634

D)                           0.725           0.575

 

38.Given the following income statement:

Net Sales	200
Cost of Goods Sold	55
Gross Profit	145
Operating Expenses	30
Operating Profit (EBIT)	115
Interest	15
Earnings Before Taxes (EBT)	100
Taxes	40
Earnings After Taxes (EAT)	60

What are the interest coverage ratio and the net profit margin?

Interest Coverage Ratio

Net Profit Margin

 

A)                           7.67                0.30

B)                           0.57                0.56

C)                           2.63                0.30

D)                           0.78                7.53

 

39.Which ratio is used to measure a company's internal liquidity?

A)   Current ratio.

B)   Total asset turnover.

C)   Gross profit margin.

D)   Interest coverage.

 

40.Using a 365-day year, if a firm has net annual sales of $250,000 and average receivables of $150,000, what is its average collection period?

A)   219.0 days.

B)   1.7 days.

C)   0.6 days.

D)   46.5 days.

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答案和详解如下：

36.An analyst has gathered the following information about a firm:

§ Net sales of $500,000

§ Cost of goods sold equals $250,000 

§ EBIT of $150,000 

§ EAT of $90,000

What is this firm’s operating profit margin?

A)   18%.

B)   50%.

C)   60%.

D)   30%.

The correct answer was D)

Operating profit margin = EBIT/net sales = $150,000/$500,000 = 30%

 

37.Given the following income statement:

Net Sales	200
Cost of Goods Sold	55
Gross Profit	145
Operating Expenses	30
Operating Profit (EBIT)	115
Interest	15
Earnings Before Taxes (EBT)	100
Taxes	40
Earnings After Taxes (EAT)	60

What are the gross profit margin and operating profit margin?

Gross Profit Margin

Operating Profit Margin

 

A)                           0.379           0.725

B)                           2.630           1.226

C)                           1.379           2.634

D)                           0.725           0.575

The correct answer was D)

Gross profit margin = gross profit/ net sales = 145/200 = .725

Operating profit margin = EBIT/net sales = 115/200 = .575

 

38.Given the following income statement:

Net Sales	200
Cost of Goods Sold	55
Gross Profit	145
Operating Expenses	30
Operating Profit (EBIT)	115
Interest	15
Earnings Before Taxes (EBT)	100
Taxes	40
Earnings After Taxes (EAT)	60

What are the interest coverage ratio and the net profit margin?

Interest Coverage Ratio

Net Profit Margin

 

A)                           7.67                0.30

B)                           0.57                0.56

C)                           2.63                0.30

D)                           0.78                7.53

The correct answer was A)

Interest coverage ratio = EBIT/interest exp. = 115/15 = 7.67

Net profit margin = net income/net sales = 60/200 = 0.30

 

39.Which ratio is used to measure a company's internal liquidity?

A)   Current ratio.

B)   Total asset turnover.

C)   Gross profit margin.

D)   Interest coverage.

The correct answer was A)

Total asset turnover measures operating efficiency, gross profit margin measures operating profitability and interest coverage measures a company’s financial risk.

 

40.Using a 365-day year, if a firm has net annual sales of $250,000 and average receivables of $150,000, what is its average collection period?

A)   219.0 days.

B)   1.7 days.

C)   0.6 days.

D)   46.5 days.

The correct answer was A)

Receivables turnover = $250,000/$150,000 = 1.66667

Collection period = 365/1.66667 = 219 days