FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 14: Capital Budgeting Decisions

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

Multiple Choice

Review LaterAdd Note

Review Later

Granger Corporation had $180,000 in sales on account last year.The beginning accounts receivable balance was $10,000 and the ending accounts receivable balance was $18,000.The corporation's average collection period was closest to:

A) 20.3 days
B) 28.4 days
C) 36.5 days
D) 56.8 days

E) None of the above
F) A) and C)

Correct Answer

verified

Show Answer

Question 22

Essay

Review LaterAdd Note

Review Later

Gambino Corporation has provided the following financial data: Required: a.What is the company's times interest earned for Year 2? b.What is the company's debt-to-equity ratio at the end of Year 2? c.What is the company's equity multiplier at the end of Year 2?

Correct Answer

verified

a.Times interest earned = Net operating ...

View Answer

Show Answer

Question 23

Multiple Choice

Review LaterAdd Note

Ribaudo Corporation has provided the following financial data from its balance sheet and income statement: The company's total asset turnover for Year 2 is closest to:

Erastic Corporation has $14,000 in cash,$8,000 in marketable securities,$34,000 in account receivable,$40,000 in inventories,and $42,000 in current liabilities.The corporation's current assets consist of cash,marketable securities,accounts receivable,and inventory.The corporation's acid-test ratio is closest to:

Rough Corporation's total assets at the end of Year 2 were $1,247,000 and at the end of Year 1 were $1,270,000.The company's total liabilities at the end of Year 2 were $512,000 and at the end of Year 1 were $550,000.The company's total stockholders' equity at the end of Year 2 was $735,000 and at the end of Year 1 was $720,000.The company's equity multiplier is closest to:

The gross margin percentage is computed by dividing the gross margin by net income before interest and taxes.

Kaloi Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $3,500.The market price of common stock at the end of Year 2 was $7.46 per share. Required: a.What is the company's working capital at the end of Year 2? b.What is the company's current ratio at the end of Year 2? c.What is the company's acid-test (quick)ratio at the end of Year 2? d.What is the company's accounts receivable turnover for Year 2? e.What is the company's average collection period (age of receivables)for Year 2? f.What is the company's inventory turnover for Year 2? g.What is the company's average sale period (turnover in days)for Year 2? h.What is the company's operating cycle for Year 2? i.What is the company's total asset turnover for Year 2? j.What is the company's times interest earned for Year 2? k.What is the company's debt-to-equity ratio at the end of Year 2? l.What is the company's equity multiplier at the end of Year 2? m.What is the company's net profit margin percentage for Year 2? n.What is the company's gross margin percentage for Year 2? o.What is the company's return on total assets for Year 2? p.What is the company's return on equity for Year 2?

Last year Truro Corporation purchased $800,000 of inventory.The cost of goods sold was $750,000 and the ending inventory was $125,000.The inventory turnover for the year was:

Which one of the following statements about book value per share is most correct?

The acid-test ratio is usually greater than the current ratio.

Neef Corporation has provided the following financial data from its balance sheet and income statement: The company's return on total assets for Year 2 is closest to:

Neiger Corporation has provided the following financial data: Required: a.What is the company's working capital at the end of Year 2? b.What is the company's current ratio at the end of Year 2? c.What is the company's acid-test (quick)ratio at the end of Year 2? d.What is the company's times interest earned for Year 2? e.What is the company's debt-to-equity ratio at the end of Year 2? f.What is the company's equity multiplier at the end of Year 2?

Crosswhite Corporation's sales last year were $1,270,000,its gross margin was $400,000,its net operating income was $53,769,and its net income was $26,500.The company's net profit margin percentage is closest to:

Wyand Corporation's net operating income last year was $212,000;its interest expense was $26,000;its total stockholders' equity was $1,000,000;and its total liabilities were $370,000. Required: Compute the following for Year 2: a.Times interest earned. b.Debt-to-equity ratio.

Ribaudo Corporation has provided the following financial data from its balance sheet and income statement: The company's average collection period (age of receivables) for Year 2 is closest to:

All other things the same,when a customer purchases an item for cash,the accounts receivable turnover ratio increases.

Nickolls Corporation has provided the following financial data: The company's current ratio is closest to:

Deacon Corporation has provided the following financial data from its balance sheet and income statement: The company's times interest earned for Year 2 is closest to:

Deacon Corporation has provided the following financial data from its balance sheet and income statement: The company's equity multiplier at the end of Year 2 is closest to:

Louie Corporation has provided the following data: The company's operating cycle for Year 2 is closest to: