1. The McHugh Company is seeking to expand their store after a very successful year. Emily sets up an appointment with her bank to assess whether her corporation can secure a loan in order to expand. Which of the following ratios would the bank most likely be using to judge if Emily can pay the long-term loan she will be taking?

Select one:

a. Return on Assets

b. Total Asset Turnover

c. Return on Debt

d. Debt-to-Equity Ratio

2.

A companys balance sheet at December 31, 20x6 showed a cash balance of $127207. In addition, the companys cash flow statement for the year ended December 31, 20x6 disclosed the following net cash flows:
	Net cash inflow from operating activities		$346267
	Net cash outflow from investing activities		289806
	Net cash inflow from financing activities		69713
Which of the following is the correct cash balance on January 1, 2006?

Select one:

a. 140459

b. 1033

c. 113955

d. 253381