1- A company has the attached balance sheet in the previous year. At the end of 2020, an auditor (may be you) finds out the following transactions in 2020: (a) The company obtained a short-term bank loan of 200 $; (b) The company issued a stock dividend of 100 $ by using its retained earnings. Assuming that these are the only transactions, the following ratios are calculated as of the 2020 year-end: (a) Current ratio is 1,3; (b) Quick ratio is 1,1; (c) Cash ratio is 0,7; (d) Financial leverage ratio is 1,2; (e) Debt-to-equity ratio is -6. What is the total assets in the 2020 balance sheet?

1. 1.182 $
2. 985 $
3. 855 $
4. 1.085 $

2- Refer to Question 1. Suppose that the company has a credit sales revenue amount of 1.000 $ in 2020. What is the accounts receivable turnover in days as of the 2020 year-end? (1 year = 360 days)

1. 68,4 days
2. 72,4 days
3. 67,4 days
4. 69,4 days

3- Refer to Question 1. Suppose that cost of goods sold was 800 $ in 2020. What is the inventory turnover ratio as of the 2020 year-end? (1 year = 360 days)

1. 3,20
2. 4,71
3. 8,89
4. 6,55

4- Refer to Questions 1,2 and 3. What is the approximate cash conversion cycle for the company as of 2020 year-end? (1 year = 360 days)

1. 90 days
2. 95 days
3. 100 days
4. 105 days

5- Refer to Question 1 and 2. What is the net profit margin for the company as of the 2020 year-end?

1. 20,0%
2. -73,2%
3. 15,2%
4. -59,7%

6- Refer to Question 1. What is the yearly increase/decrease in current assets/total assets ratio?

1. 1,016 times decrease
2. 1,026 times increase
3. 1,036 times decrease
4. 1,046 times increase

7- Refer to Question 1. What is the yearly increase/decrease in net working capital?

1. 135 $ increase
2. 165 $ increase
3. 135 $ decrease
4. 165 $ decrease

8- Refer to Questions 1,2 and 3. Assume that 2020 income statement includes credit sales, cost of goods sold and interest expense only. What is the times interest earned ratio for the company? (Note that the times interest earned ratio is a measure of a company's ability to meet its debt obligations based on its current income. The formula is earnings before interest and taxes (EBIT) divided by the total interest expense.)

1. 0,15
2. 0,20
3. 0,25
4. 0,30

9- Refer to all above. Which of the following cannot be said about the company's financial position as of the 2020 year-end?

1. The company's total liabilities are greater than its total assets
2. The company's invested capital is 535 $
3. The company's long-term debt is 62% of its total liabilities
4. The company's inventory dependency ratio is around 29%.

BONUS QUESTION - Interpret the financial situation of the company in Question 1 to 9 in terms of liquidity, efficiency, leverage (solvency) and profitability. A very short but a to-the-point answer is expected.

150 BALANCE SHEET (31.12.2019) Cash and Cash Equivalents 100 Short-term debt Accounts Receivable 200 Accounts Payable Inventory 250 Long-term debt Property, Plant and Equipment 400 Common Stock Retained Earnings TOTAL ASSETS 950 TOTAL LIABILITIES + EQUITY 100 300 250 150 950