What is a firm’s total asset turnover if its fixed assets are $120,000, current assets are $30,000, current liabilities are $44,000, sales were $200,000, and net income was $75,000? A) 0.5 times B) 2.2 times C) 1.3 times D) 2.0 times E) 1.7 times ANSWER C
Date: September 19th, 2020
The cost of obsolescence, damage, and theft is considered part of: A) Shortage Costs B) Opportunity Costs C) Carrying Costs D) Insurance Costs ANSWER C
Date: September 19th, 2020
A firm has current assets of $350,000, current liabilities of $200,000, cost of goods sold of $250,000, and inventory of $75,000. The firm’s inventory turnover is A) 5.0 times. B) 3.3 times. C) 2.7 times. D) 2.0 times. E) 4.7 times. ANSWER B
Date: September 19th, 2020
B&O Railroad Inc transports industrial products and supplies throughout the North Eastern United States. Selected financial information for B&O is provided in the table below. B&O is considering a stock dividend of 5%. What will earnings-per-share be after the dividend? B&O Railroad Inc Selected Financial Information Stock Price $68 EPS $6.00 Dividends per share $1.24 […]
Date: September 19th, 2020
Car-Quake Stereo plans to sell 500 bass boosters this year. If the carrying cost per unit is $1 and the cost per order is $25, what is the optimal number of units per order? A) 150 B) 168 C) 125 D) 173 E) 158 ANSWER E
Date: September 19th, 2020
Which of the following is NOT true with respect to interest rate arbitrage? A) Interest rate arbitrage maintains the interest rate parity relationship. B) To arbitrage, you buy and sell something so that you have a positive investment and then earn a return on the transaction. C) It is rare that similar risk investments in […]
Date: September 19th, 2020
The foreign exchange market is ________ and functions much like a ________ market. A) noncompetitive; decentralized B) competitive; centralized C) noncompetitive; centralized D) competitive; decentralized ANSWER B
Date: September 19th, 2020
What is the current ratio if cash is $10,000, accounts receivable are $25,000, inventories are $30,000, accounts payable are $40,000, and accrued payroll is $15,000? A) 2.00 B) 1.18 C) 1.13 D) 0.64 E) 0.73 ANSWER B
Date: September 19th, 2020
The ________ states that two identical products produced in two different countries should cost the same to traders in any other country. A) Law of one price B) Relative purchasing power parity C) Absolute purchasing power parity D) Arbitrage ANSWER A
Date: September 19th, 2020
The combined costs of holding inventory are called A) opportunity costs. B) storage costs. C) carrying costs. D) stocking charges. E) maintenance costs. ANSWER C
Date: September 19th, 2020
