Ratio analysis practice exam
Not what you're looking for?
1. Crystal Lake, Inc., has a total debt ratio of 0.23.
(a) What is its debt-equity ratio?
(b) What is its equity multiplier?
2. For the year just ended, Ypsilanti Yak Yogurt shows an increase in its net fixed assets account of $645. The company took $190 in depreciation expense for the year. How much did the company spend on new fixed assets?
3. Ortiz Lumber Yard has a current accounts receivable balance of $457,615. Credit sales for the year just ended were $2,951,600.
(a) What is the receivables turnover?
(b) What is the days' sales in receivables?
4. Based only on the following information for Bennington Corp., did cash go up or down? By how much?
Decrease in inventory $460
Decrease in accounts payable 140
Increase in notes payable 670
Increase in accounts receivable 220
5. Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $7.1 million. The machinery can be sold to the Romulans today for $4.45 million. Klingon's current balance sheet shows net fixed assets of $3.2 million, current liabilities of $1.7 million, and net working capital of $560,000. If all the current assets were liquidated today, the company would receive $1.95 million cash
(a) What is the book value of Klingon's assets today?
(b) What is the market value?
Purchase this Solution
Solution Summary
The computations are detailed for the student so they can "see" why the selection is correct.
Education
- BSc, University of Virginia
- MSc, University of Virginia
- PhD, Georgia State University
Recent Feedback
- "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
- "Thank, this is more clear to me now."
- "Awesome job! "
- "ty"
- "Great Analysis, thank you so much"
Purchase this Solution
Free BrainMass Quizzes
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.