Wayne’s Wax World has an inventory turnover of 16 times per year and a cost of goods sold of $1,600. Calculate the average inventory turnover. A) 22.81 B) 1,000 C) 4.38 D) 13.92 E) 14.25 ANSWER A
Date: September 19th, 2020
You are evaluating two projects. You may accept only one of them. Project one will cost $379,000 initially and will pay $134,000 each year for the next 5 years. Project two will cost $454,000 initially, but will pay $101,000 for the next 10 years. The firm’s cost of capital is 15%. Compute the NPV of […]
Date: September 19th, 2020
Foreign currency trading A) takes place on organized exchanges. B) mostly entails small transactions. C) volume averages less than $1 billion per day. D) is conducted in less-than-competitive markets. E) takes place in markets similar to OTC stock markets. ANSWER E
Date: September 19th, 2020
In common-size financial statements, A) all balance sheet items are divided by total liabilities. B) total sales are divided by total assets. C) depreciation expense is divided by total sales. D) accrued taxes are divided by total sales. E) net income is divided by total assets. ANSWER C
Date: September 19th, 2020
Select financial data for Ewing Oil Inc. is provided in the table below. Ewing Oil repurchased $4.75B worth of shares during the year at an average price of $25. How many shares are outstanding at the end of the year? Ewing Oil Inc. Selected Financial Information Shares outstanding at beginning of Year 1.86B Price at […]
Date: September 19th, 2020
Firm X has an accounts payable period of 38 and a costs of goods sold of $7,500. Calculate the Average payables. A) 780.44 B) 197.37 C) 835.64 D) 217.26 E) 694.61 ANSWER A
Date: September 19th, 2020
The Cash Store Co just repurchased 11.875 million shares at a price of $14. The stock was trading at a price of $16 prior to the repurchase, but a market correction gave the company an opportunity to repurchase at a lower price. There were 100 million shares outstanding prior to the repurchase. The stock is […]
Date: September 19th, 2020
The four-digit codes used by the government to classify firms into industries are known as A) ratio standards. B) EIC codes. C) USIC codes. D) financial benchmarks. E) SIC codes. ANSWER E
Date: September 19th, 2020
Each of the following is a ratio category EXCEPT A) productivity ratios. B) market ratios. C) liquidity ratios. D) financing ratios. E) activity ratios. ANSWER A
Date: September 19th, 2020
When evaluating a new project, the firm should consider all of the following factors EXCEPT A) previous expenditures associated with a market testing. B) changes in working capital attributable to the project. C) the current market value of any equipment to be replaced. D) the resulting difference in depreciation expense if the project involves replacement. […]
Date: September 19th, 2020
