2012 2011

Cash and Cash Equivalents 2,450 2,094

Receivables. 1,813 1,611

Inventory 1,324 1,060

Prepaid Expenses 1,709 2,120

Total Current Assets 7,296 6,885

Other Assets 18,500 15,737

Total Assets 25,796 22,622

Total Current liabilities 7,230 8,467

Long-Term Liabilities 4,798 3,792

Common Stock 6,568 4,363

Retained Earnings 7,200 6,000

Total Liabilities and equity 25,796 22,622

Sales 20,941 Choose the Best Answer for the following:

Cost of Sales 7,055

Operating Expenses 7,065

Operating Income 6,821

Interest Expenses 210

Income tax Expense 2,563

Net Income 4,048

Horizontal analysis of Liberty's balance sheet for 2012 would report 2012 Liberty's days' sales in receivables rate was (amounts rounded)

a Cash as 9.5% of total assets a. 34 days

b 17% increase in Cash b. 30 days

c Current ratio of 1.01 c. 32 days

d Inventory turnover of 6 times d. 28 days

2. Vertical analysis of Liberty's balance sheet for 2012 would report. 7. Which Measure express Liberty's times-interest-earned ratio?

a Cash as 9.5% of total assets a 54.70%

b Inventory turnover of 6 times b. 19 times

c Current ratio of 1.01 c. 34 times

d 17% increase in Cash d. 32 times

3. A common-size income statement for liberty would report (amounts rounded). 8. Liberty's rate of return on common stockholders' equity can be described as

a Net Income of 19% a. weak

b Sales of 100% b. normal

c Cost of Sales at 34% c. Strong.

d. All of the above d. average

4. Which statement best describes Liberty's acid-test ratio? 9. The company has 2,500 shares of common stock outstanding. What is Liberty's earnings per share

a. Greater than 1. a. 1.62

b. Equal to 1. b. 1.75

c. Less than 1 c. 2.73

d. None of the above d. 2.63 times

5. Liberty's inventory turnover during 2012 was (amounted rounded) 10. Liberty's stock has traded recently around $48 per share. Use the answer to question 9 to

a. 6 times measure the company's price/earnings ratio.

b. 7 times a. 1.01

c. 8 times b. 30

d. Not determinable from the data given c. 48

d. 78

Views/app SX Up 11 B IU$ A H CA 5 F E G 2012 Cash and Cash Equivalents Receivables Inventory Prepaid Expenses Total Current Assets Other Assets Total Assets Total Current liabilities Long-Term Liabilities Common Stock Retained Earnings Total Liabilities and equity Sales Cost of Sales Operating Expenses Operating Income Interest Expenses Income tax Expense Net Income 2,450 1,813 1,324 1,709 7,296 18,500 25,796 7,230 4,798 6,568 7,200 25,796 20,941 7,055 7,065 6.821 210 2,563 4,048 H 2011 2,094 1,611 1,060 2,120 6,885 15,737 22,622 8,467 3,792 4,363 6,000 22,622 a 1. Horizontal analysis of Liberty's balance sheet for 2012 would report Cash as 9.5% of total assets b 17% increase in Cash Current ratio of 11 1 Help 11 - E H G 4,048 Net Income 1. Horizontal analysis of Liberty's balance sheet for 2012 would report Cash as 9.5% of total assets b 17% increase in Cash Current ratio of 1.01 d Inventory turnover of 6 times 2. Vertical analysis of Liberty's balance sheet for 2012 would report. a Cash as 9.5% of total assets b Inventory turnover of 6 times Current ratio of 1.01 d 17% increase in Cash 3. A common-size income statement for liberty would report (amounts rounded) a Net Income of 19% b Sales of 100% Cost of Sales at 34% d. All of the above 4. Which statement best describes Liberty's acid-test ratio? a. Greater than 1. b. Equal to 1. Less than 1 d None nf the ahve G E salesOI076 C Cost of Sales at 34% All of the above d. 4. Which statement best describes Liberty's acid-test ratio? a. Greater than 1. b. Equal to 1. C. Less than 1 d. None of the above 5. Liberty's inventory turnover during 2012 was (amounted rou a. 6 times b. 7 times 8 times d. Not determinable from the data given 6. During 2012 Liberty's days' sales in receivables rate was (amounts rounded) a. 34 days b. 30 days C. 32 days d. 28 days 7. Which Measure express Liberty's times-interest-earned ratio? a 54.70% b. 19 times C. 34 times d. 32 times 8. Liberty's rate of return on common stockholders' equity can be described as a. weak b. normal C. Strong. d. average a. 9. The company has 2,500 shares of common stock outstanding. What is Liberty's earnings per share 1.62 b. 1.75 2.73 d. 2.63 times C. 9. The company has 2,500 shares of common stock outstanding. What is Liberty's earnings per shar a. 1.62 b. 1.75 C. 2.73 d. 2.63 times 10. Liberty's stock has traded recently around $48 per share. Use the answer to question 9 to measure the company's price/earnings ratio. 1.01 b. 30 48 d. 78 a. C