1.02 What is the Current Ratio for this company at the end of the year? a.) 0.47 b.) 1.97 c.) 2.07 d.) 4.36 1.03 The Current Ratio is favored by loan officers and creditors as an indicator of financial health. Generally a 2 to 1 Current Ratio is considered the satisfactory minimum. The construction industry average has a 2.5 Current Ratio, - Based on the Current Ratio developed under the previous question, what financial determination can be made regarding this company. a.) This company is in relatively good financial health b.) This company is in relatively poor financial health c.) This company is in exceedingly good financial health d) Not enough information to make a comparison 1.04 What is the Acid Test Ratio for this company at the end of the year? a.) 0.51 b.) 0.95 c.) 1.00 d.) 2.07 1.05 The Acid Test measures the immediate ablity to pay current debts. This is a more conservative approach than the Current Ratio since inventories are not necessarily avalable and may not be readily avalable. Generally, a 1 to 1 minimum is considered healthy. - Based on the Acid Test developed under the previous question, what financial determination can be made regarding this company. a.) This company is in relatively good financial health b.) This company is in relatively poor financial health c.) This company is in exceedingly good financial health d) Not enough information to make a comparison 1.06 What is the Leverage Ratio of Total Debt to Total Assets for the company at the end of the year? a.) 0.30(30%) b.) 0.51(51%) c.) 0.96(96%) d.) 1.97(197%) 1.07 What is the Construction Industry Average percentage for the Debt to Total Assets Ratio ? a.) 5% b.) 10% c.) 20% d.) 33% 1.08 The Debt to Total Assets Ratio is an indicator of the companies Leverage. Leverage refers to using the equity capital base to ralse additional capital from non-owner sources. - Based on the Total Debt to Total Assets Ratio developed under the previous two questions, what financial determination can be made regarding this company: a.) This company has a relatively good or low ratio in comparison to the industry standard b.) This company has a relatively poor or high ratio in comparison to the industry standard c.) This company has an exceedingly good or low ratio in comparison to the industry standard d.) Not enough information to make a comparison 1.09 What is the Debt to Equity Ratio for this company at the end of the year? a.) 0.22 b.) 0.47 c.) 1.03 d.) 1.96 1.10 The Debt to Equity Ratio is an indicator of whether a company is using debt prudently or are they overburdened with debt that may cause problems. If a company has a debt to equity ratio of less than 1.0 this would be desirable \& considered moderately leveraged. If a company has a debt to equity ratio of greater than 2.0, the company is considered overburdened with debt. - Based on the Debt to Equity Ratio developed under the previous question, what financial determination can be made regarding this company. a.) This company is highly leveraged with debt and may cause problems b.) This company is lowly leveraged with debt and has exceedingly high equity c.) This company is moderately leveraged with debt d.) Not enough information to make a comparison 1.11 What is the Times Interest Earned Ratio (TIE) for this company at the end of the year? a.) 0.25 times b.) 0.51 times c.) 1.03 times d.) 4.07 times 1.02 What is the Current Ratio for this company at the end of the year? a.) 0.47 b.) 1.97 c.) 2.07 d.) 4.36 1.03 The Current Ratio is favored by loan officers and creditors as an indicator of financial health. Generally a 2 to 1 Current Ratio is considered the satisfactory minimum. The construction industry average has a 2.5 Current Ratio. - Based on the Current Ratio developed under the previous question, what financial determination can be made regarding this company. a.) This company is in relatively good financial health b.) This compary is in relatively poor financial health c.) This company is in exceedingly good financial health d.) Not enough information to make a comparison 1.04 What is the Acid Test Ratio for this company at the end of the year? a.) 0.51 b.) 0.95 c.) 1.00 d.) 2.07 1.05 The Acid Test measures the immediate ablity to pay current debts. This is a more conservative approach than the Current Ratio since inventories are not necessarily available and may not be readily avalable. Generally, a 1 to 1 minimum is considered healthy. - Based on the Acid Test developed under the previous question, what financial determination can be made regarding this company. a.) This company is in relatively good financial health b.) This company is in relatively poor financial health c.) This company is in exceedingly good financial health d.) Not enough information to make a comparison 1.06 What is the Leverage Ratio of Total Debt to Total Assets for the company at the end of the year? a.) 0.30(30%) b.) 0.51(51%) c.) 0.96(96%) d.) 1.97(197%) 1.07 What is the Construction Industry Average percentage for the Debt to Total Assets Ratio? a.) 5% b.) 10% c.) 20% d.) 33% 1.08 The Debt to Total Assets Ratio is an indicator of the companies Leverage, Leverage refers to using the equity capital base to raise additional capital from non-owner sources. - Based on the Total Debt to Total Assets Ratio developed under the previous two questions, what financial determination can be made regarding this company: a.) This company has a relatively good or low ratio in comparison to the industry standard b.) This company has a relatively poor or high ratio in comparison to the industry standard c.) This company has an exceedingly good or low ratio in comparison to the industry standard d.) Not enough information to make a comparison 1.09 What is the Debt to Equity Ratio for this company at the end of the year? a.) 0.22 b.) 0.47 c.) 1.03 d.) 1.96 1.10 The Debt to Equity Ratio is an indicator of whether a company is using debt prudently or are they overburdened with debt that may cause problems. If a company has a debt to equity ratio of less than 1.0 this would be desirable \& considered moderately leveraged. If a company has a debt to equity ratio of greater than 2.0, the company is considered overburdened with debt - Based on the Debt to Equity Ratio developed under the previous question, what financial determination can be made regarding this company. a.) This company is highly leveraged with debt and may cause problems b.) This company is lowly leveraged with debt and has exceedingly high equity c.) This company is moderately leveraged with debt d.) Not enough information to make a comparison 1.11 What is the Times Interest Earned Ratio (TIE) for this company at the end of the year? a.) 0.25 times b.) 0.51 times c.) 1.03 times d.) 4.07 times 2 What is the Construction Industry Average Times for the Times Interest Earned Ratio (TIE)? a.) 5.50 Times b. 8.00 Times c.) 900 Times d.) 33.00 Tines 13 The Times Interest Earned Ratio (TIE) is a measure of a company's ablity to pay interest from earnings. The larger the Time interest Earned, the moce capable the company is at paying the interest on is debt if a company hes a Times interest Ratio of 10, then that means a company has earned 10 times its intorest charges. Typicaly, it is a waming sign when interest coverage falis below 2.5 tmes - Based on the TiE ratio developed under the previous 2 questions, what financial determination can be made regarding this company a) This company exceeds the average b.) This company is equal to the average c) This company is significantly below the averago d.) Not enough information to make a comparison 1.14 What is the Return on Sales Ratio percontage for this company at the end of the year? a) 4.0% b.) 6.2% c.) 25.0% d.) 37.1% 1.15. The Return on Sales Ratio shows the margin of profit as a percentage. According to the construction industry, the average percentage Return on Sales is 5 percent. - Basod on the Return on Soles Ratio developed under the previous question, what financial determination can be made regarding this company? What is the Return on Sales percentage for this company at the end of the year? a) This company excecods the average c) This company is slightly below the average b.) This company is equal to the average d.) Not enough information to make a comparison 1.16 What is the Return on Equity Ratio (ROE) percentage for this company at the end of the year? a) 4,0% b.) 62% c.) 23.01% d.) 12.04% 1.17 The Roturn on Equity Ratio (ROE) is useful for comparing the profitabilty of a company to that of other construction firms in the same construction industry. The average percentage Return on Equity is 15 percent in the construction industry. - Based on the ROE developed under the previous question, what financial determination can be made regarding this company? a.) This company exceeds the average b.) This company is equal to the average c) This company is slightly below the average d.) Not enough information to make a comparison 118 What is the Return on Assets Ratio (ROA) percentage for this company at the end of the year? a.) 12.06% b.) 23.10% c) 21.60% d.) 4.0% 1.19 The Return on Assets Ratio (ROA) is an indicator of how profitable a compary is relative to its total assets. ROA gives an idea as to how efficient management is at using its assets to generate eamings. sometimes referred as "retum on investment". The average percentage ROA ratio is 8 porcent in the construction industry. Based on the ROA developed under the previous question, what firancial detertnination can be made regarding this company? a) This company exceeds the average b.) This coerpary is equal to the average c.) This company is sligthly bolow the average d) Not enough irformation to make a comparson BALANCE SHEET Assets \begin{tabular}{|c|c|c|} \hline End of Year & & Start of Year \\ \hline 260,631.00 & $ & 233,171,00 \\ \hline 423,731.00 & 5 & 385,25900 \\ \hline 640,020.00 & $ & 517,936.00 \\ \hline 91,433,00 & 5 & 85.559 .00 \\ \hline 1.415 .815 .00 & 5 & 1,221925.00 \\ \hline 2,317,500.00 & 5 & 2.080 .33600 \\ \hline(753,917.00) & 5 & (764,90000) \\ \hline 1,563,583.00 & 3 & 1,324,43600 \\ \hline 2.979 .398 .00 & 5 & 2546.361 .00 \\ \hline \end{tabular} Cash Contract Receivabie Inventory Prepaid Expense Total Current Assets : Property, Plant, Equipment Accumulated Depreciation Cost less Accumulated Depreciation Total Assets : Liablitities and Owners' Equity End of Year Start of Year Accounts Payable - Operating Accrued Operating Expenses Income Tax Payable Short-Term Debt Payabie Total Current Liabilities: Long-Term Debt Payable Total Liabilities : Capital Stock Retained Eamings Total Owners' Equity Total Liabilities \& Owners' Equity : \begin{tabular}{|c|c|c|c|} \hline 5 & 260,631.00 & $ & 233,171,00 \\ \hline 5 & 423,731.00 & 5 & 385,25900 \\ \hline 5 & 640,020.00 & s & 517,936.00 \\ \hline s & 91,43300 & 5 & 85.5599 .00 \\ \hline$ & 1.415 .815 .00 & 5 & 1,221,925.00 \\ \hline 5 & 2,317,500.00 & 5 & 2.090 .33600 \\ \hline 5 & (753,917.00) & 5 & (764,90000) \\ \hline$ & 1,563,523.00 & $ & 1.324,43600 \\ \hline 5 & 2.979 .398 .00 & 5 & 2546.361 .00 \\ \hline \end{tabular} End of Year \begin{tabular}{|c|c|c|c|} \hline$ & 281,915,00 & 5 & 24229400 \\ \hline 5 & 142.246 .00 & 5 & 126,264.00 \\ \hline$ & 8,500,00 & 5 & 15.01800 \\ \hline 5 & 250,000,00 & 5 & 196.11300 \\ \hline 5 & 682,661,00 & 3 & 579.689 .00 \\ \hline \$ & 833.334 .00 & 5 & 650.000 .00 \\ \hlines & 1.515 .905 .00 & 5 & 1,229.689.00 \\ \hline 5 & 509,72200 & 5 & 489,167,00 \\ \hline 5 & 953,681.00 & 5 & 827.505 .00 \\ \hlines & 1,463.403.00 & 3 & 1.316 .67200 \\ \hline 5 & 2979,398.00 & 5 & 2.546,361.00 \\ \hline \end{tabular} CASH FLOW STATEMENT - FOR THE YEAR Cash Flows for Operating Activities Net income from income Statement Contract Receivable Increase Imventory increase Prepaid Expenses Decrease Depreciation Expense Accounts Payable increase Accrued Expenses increase income Tax Payable Decrease. Cash Flow Adjustments to Net income Cash Flow from Operating Activities Cash Flows from Investing Activities Purchases of Property, Plant \& Equipment Proceeds from Disposal of Property. Plant \& Equipment Cash Used in Investing Actrities Cash Flows from Investing Activities Short-Term Debt Borrowing Long-Term Debt Borrowing Capital Stock issue Dividends Psid Stockhoiders Cash from Finanicing Activities Increase (Decrease) in Cash during Year \begin{tabular}{|c|c|} \hline 5 & (354,028.00) \\ \hline 5 & 29.498 .00 \\ \hline 5 & (324,530,00) \\ \hline s & 53.887 .00 \\ \hline 5 & 183,33400 \\ \hline s & 20.55400 \\ \hline 5 & (50,000,00) \\ \hline 5 & 207,775,00 \\ \hline \$ & 27,400.00 \\ \hline \end{tabular}
