From your knowledge of the balance sheet, please select the correct rank of these in increasing order of liquidity.
A. Plant & equipment, inventory, marketable securities, accounts receivable, cash
B. Plant & equipment, marketable securities, accounts receivable, inventory, cash
C. Plant & equipment, inventory, accounts receivable, marketable securities, cash
D. Plant & equipment, marketable securities, inventory, accounts receivable, cash
E. Plant & equipment, accounts receivable, marketable securities, inventory, cash
2. If you borrow $30,000 today and repay it with quarterly payments of $1003 over 10 years. If the rate is compounding quarterly, what APR are you paying?
A. 6.8% B. 6.56% C. 6.4% D. 6.0% E. 5.8%
3. Which of these ratios uses information from both the balance sheet and income statement?
A. current ratio
B. leverage ratio
C. P/E ratio
D. profit margin
E. total asset turnover
4. Here’s some info for a company:
Total asset turnover = 3.0 Total liabilities = $50,000,000 Coverage ratio= 4.0
Profit margin = 5% Stockholder’s equity = $10,000,000
What is the company’s net income?
A. $4.5 million
D. $9 million
B. $6 million
E. $12 million
C. $8 million
5. Here’s some info for a company:
Total assets = $50,000,000 Total liabilities = $20,000,000
Profit margin = 5%
Return on equity = 20%
What is the company’s total asset turnover?
A. 1.2
D. 2.0
B. 1.50
E. 2.4
C. 1.6
6. How many of the below would usually be found onthe income statement?
A. 3
B. 4
C. 5
D. 6
E. 7
Cost of goods sold
Accounts receivable
Taxes
Marketable securities
Inventory
Sales
Net Income
Operating expenses
Stockholder's Equity
Accounts payable
Interest expense
Notes payable
7. If you borrow $30,000 today and your monthly payments are $961.68, how many payments must you make to pay off the loan if you are being charged 6%APR compounded monthly?
A. 29 B. 31 C. 32 D. 34 E. 36
Here’s some info for a company:
Sales = $20 million Total asset turnover = 2.5X
Profit margin = 5%
Leverage ratio = 2.0
8. What is the company’s return on equity?
A. 10%
B. 12%
C. 40%
D. 20%
D. 25%
9. If you borrow $28,000 today and repay it over 12 years with quarterly payments of $950.40, what annual percentage rate are you being charged if there’s quarterly compounding?
A. 8.2% B. 8.6% C. 8.8% D. 9.2% E.9.6%