Question :
111. Which one of the following not a characteristic generally evaluated : 1239375
111. Which one of the following is not a characteristic generally evaluated in ratio analysis? A. liquidityB. profitabilityC. solvencyD. marketability
112. Short-term creditors are typically most interested in assessing A. marketability.B. profitability.C. operating results.D. solvency.
113. A common measure of liquidity is A. ratio of net sales to assets.B. dividends per share of common stock.C. receivable turnover.D. profit margin.
114. In 2012 Robert Corporation had net income of $250,000 and paid dividends to common stockholders of $50,000. They had 50,000 shares of common stock outstanding during the entire year. Robert Corporation’s common stock is selling for $50 per share on the New York Stock Exchange.Robert Corporation’s price-earnings ratio is A. 10 times.B. 5 times.C. 2 times.D. 8 times.
115. Leveraging implies that a company A. contains debt financing.B. contains equity financing.C. has a high current ratio.D. has a high earnings per share.
116. The following information pertains to Carlton Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Assets
Cash and short-term investments
$ 40,000
Accounts receivable (net)
25,000
Inventory
20,000
Property, plant and equipment
210,000
Total assets
$295,000
Liabilities and Stockholders’ Equity
Current liabilities
60,000
Long-term liabilities
85,000
Stockholders’ equity-common
150,000
Total liabilities and stockholders’ equity
$295,000
Income Statement
Net sales
$ 85,000
Cost of goods sold
45,000
Gross margin
40,000
Operating expenses
15,000
Interest expense
5,000
Net income
$ 20,000
Number of shares of common stock
6,000000
Market price of common stock
$20
Total dividends paid
$5,400
Cash provided by operations
$30,000
What is the ratio of net sales to total assets for this company? Round your answer to two decimal points. A. 1.00B. 1.89C. 0.36D. 0.29
117. The following information pertains to Carlton Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Assets
Cash and short-term investments
$ 40,000
Accounts receivable (net)
25,000
Inventory
20,000
Property, plant and equipment
210,000
Total assets
$295,000
Liabilities and Stockholders’ Equity
Current liabilities
60,000
Long-term liabilities
85,000
Stockholders’ equity-common
150,000
Total liabilities and stockholders’ equity
$295,000
Income Statement
Net sales
$ 85,000
Cost of goods sold
45,000
Gross margin
40,000
Operating expenses
15,000
Interest expense
5,000
Net income
$ 20,000
Number of shares of common stock
6,000000
Market price of common stock
$20
Total dividends paid
$5,400
Cash provided by operations
$30,000
What is the rate earned on total assets for this company? Round your answer to one decimal point. A. 8.5%B. 6.8%C. 10.3%D. 13.3%
118. The following information pertains to Carlton Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Assets
Cash and short-term investments
$ 40,000
Accounts receivable (net)
25,000
Inventory
20,000
Property, plant and equipment
210,000
Total assets
$295,000
Liabilities and Stockholders’ Equity
Current liabilities
60,000
Long-term liabilities
85,000
Stockholders’ equity-common
150,000
Total liabilities and stockholders’ equity
$295,000
Income Statement
Net sales
$ 85,000
Cost of goods sold
45,000
Gross margin
40,000
Operating expenses
15,000
Interest expense
5,000
Net income
$ 20,000
Number of shares of common stock
6,000000
Market price of common stock
$20
Total dividends paid
$5,400
Cash provided by operations
$30,000
What are the dividends per common share for this company? A. $20.00B. $3.33C. $1.11D. $0.90
119. The following information pertains to Carlton Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Assets
Cash and short-term investments
$ 40,000
Accounts receivable (net)
25,000
Inventory
20,000
Property, plant and equipment
210,000
Total assets
$295,000
Liabilities and Stockholders’ Equity
Current liabilities
60,000
Long-term liabilities
85,000
Stockholders’ equity-common
150,000
Total liabilities and stockholders’ equity
$295,000
Income Statement
Net sales
$ 85,000
Cost of goods sold
45,000
Gross margin
40,000
Operating expenses
15,000
Interest expense
5,000
Net income
$ 20,000
Number of shares of common stock
6,000000
Market price of common stock
$20
Total dividends paid
$5,400
Cash provided by operations
$30,000
What is the dividend yield for this company? Round your answer to one decimal point. A. 4.5%B. 9.0%C. 16.6%D. 22.2%
120. The following information pertains to Carlton Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Assets
Cash and short-term investments
$ 40,000
Accounts receivable (net)
25,000
Inventory
20,000
Property, plant and equipment
210,000
Total assets
$295,000
Liabilities and Stockholders’ Equity
Current liabilities
60,000
Long-term liabilities
85,000
Stockholders’ equity-common
150,000
Total liabilities and stockholders’ equity
$295,000
Income Statement
Net sales
$ 85,000
Cost of goods sold
45,000
Gross margin
40,000
Operating expenses
15,000
Interest expense
5,000
Net income
$ 20,000
Number of shares of common stock
6,000000
Market price of common stock
$20
Total dividends paid
$5,400
Cash provided by operations
$30,000
What is the rate earned on common stockholders’ equity for this company? Round your answer to one decimal point. A. 6.8%B. 13.3%C. 16.7%D. 23.3%
