21.The following data applies to the XTC Company:

§ Sales = $1,000,000

§ Receivable = $260,000

§ Net Income = $50,000

§ COGS = $800,000

§ Total Assets = $800,000

§ Payables = $600,000

§ Debt/Equity = 200%

§ Inventory = $400,000

What is the average collection period, the average inventory processing period, and the payables payment period respectively for XTC Company?

A)                            55 days                         195 days                       231 days

B)                            95 days                         183 days                       274 days

C)                            45 days                         45 days                         132 days

D)                            95 days                         97 days                         132 days

22.An analyst has gathered the following data about a company:

§ Average receivables collection period of 95 days

§ Average inventory processing period of 183 days 

§ A payables payment period of 274 days

What is their cash conversion cycle?

A)   186 days.

B)   552 days.

C)   4 days.

D)   -4 days.

23.Given the following income statement and balance sheet for a company:

What is the operating profit margin?

A)   0.45.

B)   0.67.

C)   0.49.

D)   0.50.

21 B

22 C

23 D

right??

答案和详解如下：

21.The following data applies to the XTC Company:

§ Sales = $1,000,000

§ Receivable = $260,000

§ Net Income = $50,000

§ COGS = $800,000

§ Total Assets = $800,000

§ Payables = $600,000

§ Debt/Equity = 200%

§ Inventory = $400,000

What is the average collection period, the average inventory processing period, and the payables payment period respectively for XTC Company?

Average Collection Period

Average Inventory Processing Period

Payables Payments Period

A)                            55 days                         195 days            231 days

B)                            95 days                         183 days            274 days

C)                            45 days                         45 days              132 days

D)                            95 days                         97 days              132 days

The correct answer was B)

Receivables turnover = $1,000,000/$260,000 = 3.840

Average collection period = 365/3.840 = 95.05 or 95 days

Inventory turnover = $800,000/$400,000 = 2

Average Inventory Processing Period = 365/2 = 183 days

Payables turnover ratio = $800,000/$600,000 = 1.333

Payables payment period = 365/1.333 = 273.82 or 274 days

22.An analyst has gathered the following data about a company:

§ Average receivables collection period of 95 days

§ Average inventory processing period of 183 days 

§ A payables payment period of 274 days

What is their cash conversion cycle?

A)   186 days.

B)   552 days.

C)   4 days.

D)   -4 days.

The correct answer was C)

Cash conversion cycle = ave. receivables collection period + ave. inventory processing period – payables payment period =

95 + 183 – 274 = 4 days

23.Given the following income statement and balance sheet for a company:

Balance Sheet
Assets	Year 2003		Year 2004
Cash	500		450
Accounts Receivable	600		660
Inventory	500		550
Total CA	1300		1660
Plant, prop. equip	1000		1250
Total Assets	2600		2910
Liabilities
Accounts Payable	500		550
Long term debt	700		700
Total liabilities	1200		1652
Equity
Common Stock	400		400
Retained Earnings	1260		1260
Total Liabilities & Equity	2600		2910
Income Statement
Sales		3000
Cost of Goods Sold		(1000)
Gross Profit		2000
SG&A		500
Interest Expense		151
EBT		1349
Taxes (30%)		405
Net Income		944

What is the operating profit margin?

A)   0.45.

B)   0.67.

C)   0.49.

D)   0.50.

The correct answer was D)

Operating profit margin = EBIT/sales = 1,500/3,000 = 0.5