1- Which of the following statements is NOT true?

1. Basic shares outstanding are always included in fully diluted shares outstanding.

2. Fully diluted shares outstanding include all potentially dilutive securities that have been issued.

3. Fully diluted shares outstanding can not decrease unless shares are repurchased.

4. Basic shares outstanding are always equal to or less than fully diluted shares outstanding

2- An analyst has built a forecast showing a rapidly rising Fixed Asset Turnover Ratio. What error has the analyst likely made?

1. The CAPEX forecast is too low.

2. The depreciation forecast is too low.

3. The net profit forecast is too low.

4. The net sales forecast is too low

3- The number of shares repurchased and/or issued in a given period is shown on the:

1. income statement.

2. balance sheet.

3. cash flow statement.

4. statement of shareholders equity

4- Assume a firm has a current ratio of 2.0x and a debt ratio of 0.5x. The firm takes a charge to write-down some obsolete inventory. The firm's current ratio and debt ratio will:

1. Both decrease.

2. The current ratio will increase and the debt ratio will decrease.

3. The current ratio will decrease and the debt ratio will increase.

4. Both increase.