Question
1) A firm's total equity is $10 million and total liabilities is $5 million. During the year, its sales equaled to $75 million. Based on
1) A firm's total equity is $10 million and total liabilities is $5 million. During the year, its sales equaled to $75 million. Based on the given information, the total assets turnover ratio of the firm is:
A) 5 times
B) 15
C) 13
D) 10.5
E) 7.5
2) Which of the following changes is considered a source of cash when preparing a statement of cash flow?
a. A decrease in inventories b. A decrease in accounts payable c. A decrease in accrued wages d. An increase in property, plant, and equipment e. An increase in accounts receivable
3) Amber Devices Ltd. has total assets worth $900 million and total liabilities worth $475 million at the end of December 31. What is the amount of money received by the stockholders, if Amber liquidates all of its assets for $850 and pays off all of its outstanding debt at book value?
a. $850 million b. $375 million c. $1,325 million d. $475 million e. $425 million
4) The funds provided by common stockholders that consist of common stock, paid-in capital, and retained earnings are referred to as the firm's:
a. market value. b. cash equivalents. c. net worth. d. accruals. e. net cash flows.
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