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1.Assume a company has the following account balances: Cash ($5,000); Accounts R

ID: 2692376 • Letter: 1

Question

1.Assume a company has the following account balances: Cash ($5,000); Accounts Receivable ($11,000); Inventory ($24,000); Accounts Payable ($6500) Acccruals ($2000); Long term Debt ($25000). What is the firm's QUICK RATIO? a. 4.7 b. 1.19 c. 1.88

2.PQR, Inc. uses $ 1.2 Million in Total Assets to support it current operations. Its capital structure is $ 700,000 Debt and $ 150,000 in Common Stock and $ 350,00 in Retained Earmings. What is the firm's EQUITY MULTIPLIER? a.1.4 b. 2.4 c. 8 d. 1.82

3.Madrigal, Inc. had the following Income Statement for the period ending December 31, 2012: SALES 4,507 Less: CGS 2,333 GROSS PROFIT 1,874 Less: DEPN 952 EBIT 922 Less: INTEREST 196 EBT 726 Less: TAXES @ 35% 254 NI 472 What was its OPERATING CASH FLOW (OCF) for the period?

a. 668 b.1,678 c.1,620 d.1,176 .

4.XYZ, Inc. has a TOTAL DEBT/ASSETS RATIO of .55. What is the firm's DEBT/EQUITY RATIO?

5.GHI, Inc. has NET WORKING CAPITAL of $ 4,050, CURRENT LIABILITIES of $8,580 and INVENTORY of $ 3640. What is the firm's CURRENT RATIO?

a. 0.55 b. 0.45 c. 0.82 d. 1.22

Explanation / Answer

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