The quick ratio is 1.0. Current assets are $100,000 and current liabilities are $80,000. What is the amount in the inventory account? A) $20,000 B) $80,000 C) $125,000 D) $180,000 E) Cannot be determined with the information provided. ANSWER A
Date: September 19th, 2020
Assume that you have $900,000 to invest. The current spot rate of the Australian dollar is $0.62, and the 180-day forward rate of the Australian dollar is $0.64. Furthermore, the 180-day interest rate in the United States is 3.5% and the 180-day interest rate in Australia is 3.0%. What is the net income you will […]
Date: September 19th, 2020
On January 1, Year 1 you bought 100 shares of Oscorp Inc It is now January 1 of Year 2. You have recorded stock price information for Oscorp in the table, below. You want to calculate your return on the investment. After digging through your records you realize that Oscorp executed a 3-for-2 stock split […]
Date: September 19th, 2020
If a firm’s total asset turnover is low, but its fixed asset turnover is high, which of the following ratios should an analyst examine to locate the source of the problem? A) Debt/equity B) Price/earnings C) Return on equity D) Accounts receivable turnover E) Times interest earned ANSWER D
Date: September 19th, 2020
________ are costs associated with the consequences of running out of inventory. A) Reorder costs B) Opportunity costs C) Storage costs D) Shortage costs E) Carrying costs ANSWER D
Date: September 19th, 2020
On January 1, Year 1 you bought 100 shares of Cyberdyne Systems Inc It is now January 1 of Year 2. You have recorded stock price and dividend information for Cyberdyne in the table, below. You want to calculate your return on the investment. After digging through your records you realize that Cyberdyne executed a […]
Date: September 19th, 2020
Find accounts receivable turnover if a firm has an accounts receivable of $80,000, a total asset turnover of .75, and total assets of $230,000. A) 2.15 B) 3.8 C) 2.9 D) 1.5 E) .65 ANSWER A
Date: September 19th, 2020
Inventory carrying costs include all of the following EXCEPT A) storage costs. B) the cost of financing the inventory investment. C) the cost of taking trade discounts. D) insurance. E) damage and theft costs. ANSWER C
Date: September 19th, 2020
Which of the following statements is true? A) The quick ratio is classified as an activity ratio. B) Current assets are expected to be converted into cash in less than 2 years. C) A firm’s debt holders prefer a low quick ratio. D) Activity ratios go hand in hand with liquidity ratios E) Lower current […]
Date: September 19th, 2020
On January 1, Year 1 you bought 100 shares of Universal Exports Inc It is now January 1 of Year 2. You have recorded stock price and dividend information for Universal in the table, below. You want to calculate your return on the investment. After digging through your records you realize that Universal executed a […]
Date: September 19th, 2020
