1-

if total equity is $ 500,000, current liabilities is $100,000 and long term liabilities is $200,000. if sales is $4,000,000. the assets turnover is

a.

13.34 times

b.

25 times

c.

5 times

d.

40 times

2_

X Co. generates $ 100,000 as net income during 2019. the preferred stocks dividends is $ 20,000 and the number of shares outstanding is 500,000 $1 par with $3 market value. Earnings per share is

a.

20 cents

b.

16 cents

c.

5.3 Cents

d.

$ 5

3_

Returns on capital employed ratio is 25%. this means

a.

Each dollar invested as capital employed generates 25 Cents as revenues

b.

Each dollar invested as capital employed generates 25 Cents as net income

c.

capital employed coverage is 25%

d.

Each 25 Cents invested as capital employed generated by each dollar of sales

4_

which of the followings is considered as an outflow in the financing activities in the statement of cash flow

a.

no answer is correct

b.

increase in note payable

c.

purchase of plant asset

d.

cash dividends

5_

$ 10,000 gain from sale of investment shown in the statement of cash flows using the indirect method as

a.

$10,000 inflow in the investing activities

b.

$10,000 inflow in the operating activities

c.

$10,000 outflow in the operating activities

d.

$10,000 outflow in the investing activities

6_

X Co. has the following information:

Sale $ 1,200,000

Cost of sales $800,000

Operating expenses $200,000

current liabilities $120,000

Non-current liabilities $200,000

share capital $ 500,000

Retained earnings $ 300,000

the gross margin ratio is

a.

17%

b.

20%

c.

3 x

d.

34%