As an investor, if I want to compare companies across industries, which financial ratio is most helpful?

1)	Return on sales

2)	Return on assets

3)	Asset turnover

4)	Return on equity

5)	None of these

Question 2

	1) True
	2) False

In most businesses, the closing cash position is equal to the cash balance

Question 3

Your boss measures your management performance by ROA. One way you can improve this ratio quickly is to:

1)	Sell assets

2)	Retire stock

3)	Issue stock

4)	Buy assets

5)	All of these

Question 4

Which of the following is a point in time report?

1)	Income statement

2)	Balance sheet

3)	Cash flow statement

4)	Expense Report

5)	None of these

Question 5

Which of these is an asset management ratio?

1)	Current ratio

2)	Quick ratio

3)	Days of receivables

4)

1&2

5)	None of these

Question 6

Debt to equity is what type of ratio?

1)	Profitability

2)

Liquidity

3)	Asset management

4)

Leverage

5)	None of these

Question 7

Book value is calculated by:

1)	Sales x stock price

2)	Net profit x outstanding shares

3)	Total assets minus total liabilities

4)	Contribution margin x stock price

5)	Stock price x outstanding shares

Question 8

How can we decrease leverage?

1)	Increase debt

2)	Increase contribution margin

3)	Increase equity

4)	Increase revenue

5)

1&4

You will find the Andrews' Co. Annual Report on the last two pages of the assigned Courier. Use this report for your calculations.Section 2: Ratios. Questions are worth 5 points each. Financial ratios are measures of performance in a business. Listed below are several ratios.

Question 9

Current ratio

1)

2.98

2)

0.91

3)

7.43

4)

1.53

5)	None of these

Question 28

Andrews has a leverage of 1.8. This means that:

	$1.80 of assets is funded with $1.00 of equity and $0.80 of debt
	$1.80 of assets is funded with $1.00 of debt and $0.80 of equity
	Assets are funded with 90% equity
	Assets are funded with 90% debt

Which company in this industry has the most efficient SG&A/Sales ratio?

	Andrews
	Baldwin
	Erie
	Digby