1. At one point in time, Kello Manufacturer Company is profitable, but not liquid:
a. Using your own imagination and own data, build the 4 financial statements to reflect this company's situation. Do not use the lectures or practice numbers directly or indirectly.
b. Based on your own data, measure the cash ratio (or acid ratio)
c. Tell the meaning of that cash ratio.
d. List 3 specific actions the company may take to become liquid.
2. Durant purchased 300 shares of stock for $12.50 a share on year ago. The stock pays $0.50 a share in dividends four times each year. Today, Durant sold his shares for $22.25 a share. What is Durant’s total dollar return on this investment?
A. 66.56 percent
B. $3,525.00
C. 15.56 percent
D. $2,925.00
E. 35.56 percent