5. Calculate the current ratio for 2018. Show work. A. 2.50 B. 2.80 C. 2.41 D. 2.25 6. In horizontal analysis, the current year is the base year. A. True B. False 7. On a common-sized income statement all items are stated as a percent of total assets or equities at year-end. A. True B. False 8. The relationship of each asset item as a percent of total assets is an example of vertical analysis. A. True B. False 9. The excess of current assets over current liabilities is referred to as working capital. A. True B. False 10. Solvency analysis focuses on the ability of a business to pay its current and noncurrent liabilities. A. True B. False 2017 25 100 Chapter 14 Quiz Version B 2018 Cash 30 Accounts Receivable, Net 55 60 Inventory 6040 Property, Plant and Equipment, net 140155 Total Assets 280 285 Accounts Payable 60 Mortgage Payable 110 Common Stock, par $10 90 90 Retained Earnings Total Liabilities and Owners' Equity 280 285 Sales for the year $150 Cost of Goods Sold Net Income for the year Using the information above, answer the following questions. 1. Using vertical analysis, what percentage is Property Plant and Equipment for year 2017? Show work. A. 34.23% B. 35.71% C. 54.39% D. 36.71% 80 45 2. Using horizontal analysis, what is the change in accounts receivable? Show work A. 10% increase B. 10% decrease C. 8.33% increase D. 8.33% decrease 3. Calculate the Inventory Turnover. Show work A. 1.6 times B. 1.6% C. 1.33 times D. 1.33% 4. Calculate the earnings per share. Show work. A. $3.00 B. $5.00 C. $8.00 D. $9.00