(Multiple choice)

Use the Buffalo Bell Corporation financial statements that follow to answer questions 1 through 6.

1. During 2012, Buffalo Bell’s total assets

a. increased by 28.3%.

b. increased by $1,420 million.

c. both a and b.

d. increased by 22.1%.

2. Buffalo Bell’s current ratio at year end 2012 is closest to

a. $1,420.

b. 0.9.

c. 22.1.

d. 1.2.

3. Buffalo Bell’s quick (acid-test) ratio at year-end 2012 is closest to

a. 0.75.

b. $8,578 million.

c. 0.45.

d. 0.68.

4. What is the largest single item included in Buffalo Bell’s debt ratio at December 31, 2012?

a. Cash and cash equivalents

b. Common Stock

c. Accounts payable

d. Investments

5. Using the earliest year available as the base year, the trend percentage for Buffalo Bell’s net revenue during 2012 was

a. 121%.

b. up by 21.1%

c. 137%.

d. up by $11,555 million.

6. Buffalo Bell’s common-size income statement for 2012 would report cost of goods sold as

a. 137.9%.

b. $35,147 million.

c. up by 20.1%.

d. 82.4%.

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Buffalo Bell Corporation Consolidated Statements of Financial Position (In millions) December 31, 2012 2011 Assets: Current Assets $ 4,333 $ 4,226 Cash and cash equivalents Accounts and notes receivable 2,403 3,400 Short-term investments 845 520 Inventories, at cost 433 411 Prepaid expense and other current assets 1,638 1,226 Total current assets 10,649 8,786 Property and equipment, net 1,555 907 Investments 6,804 5,199 Other non-current assets 303 155 Total assets $19,311 $15,047 Liabilities and stockholders' equity: Current liabilities $ 7,708 $ 6,009 Accounts payable Accrued and other liabilities 3,676 3,033 Total current liabilities 11,384 9,042 Long-term debt 304 305 Other non-current liabilities 1,701 1,179 Total liabilities 13,389 10,526 Stockholders' equity Preferred stock and capital in excess of $0.02 par value; shares issucd and outstanding: none Common stock and capital in excess of $0.05 par value; shares authorized: 6,000; shares issucd: 2,163 and 1,903, respectively Treasury stock, at cost: 183 and 123 shares, respectively Retained earnings Other comprehensive loss 7,803 7,001 (6,444) (4,401) 1,990 4,676 (79) (25) Other (34) (44) Total stockholders' cquity Total liabilities and stockholders' equity 5,922 4,521 $19,311 $15,047