Consider the balance sheet below
According to China's Company law, who of the following persons could be eligible for appointment as a director, supervisor or senior manager of a company? A. A person who has been convicted crime of corruption B. A physical disabled person who has full civil capacity C. A former director of a company which has been declared bankrupt where he was personally responsible for the bankruptcy D. A person who has significant unpaid debts. 8. Which of the following FIE forms is not a legal person? A. CJV B.EJV soon mug rancor C. Branch office D.IHC how of viilids and beat vilsing aved of bermilos ed or ontolyons set . 9. According to China's company law, a company may not purchase its own shares in which of the following circumstances! A. to reduce the registered capital B. to merge with another company that holds its shares C. to reward the staff of the company with shares of D. to escape some tax Page 2 7 pages in totalLONG-TERM ASSETS 121 REQUIRED Income statement questions: 1. Are total revenues higher or lower over the three-year period? 2. What is the percent change in total revenues from 2007 to 2009? 3. Is the percent of cost of goods sold to total revenues increasing or decreasing over the three- year period? As a result, is the gross margin percent increasing or decreasing" 4. Is the percent of total operating expenses to total revenues increasing or decreasing over the three-year period? As a result, is the operating income percent increasing or decreasing? 5. Is the percent of net income to total revenue increasing or decreasing over the three-year period? Balance sheet questions: 6. Are total assets higher or lower over the three-year period? 7. What is the percent change in total assets from 2007 to 2009? 8. What are the largest asset investments for the company over the three-year period? 9. Are the inventories increasing faster or slower than the percent change in total revenues? 10. Is the percent of total liabilities to total liabilities + owners' equity increasing or decreasing? As a result, is there more or less risk that the company could not pay its debts? Integrative income statement and balance sheet question: 1 1. Is the company operating more or less efficiently by using the least amount of asset investment to generate a given level of total revenues? Note that the "total asset turnover" ratio is computed and included in the "ratio analysis summary". Ratio analysis questions: 12. Is the current ratio better or worse in the most current year compared to prior years? 13. Is the quick ratio better or worse in the most current year compared to prior years? 14. Is the accounts receivable turnover ratio I (based on average receivables) better or worse in the most current year compared to prior years? 15. Is the 2009 accounts receivable turnover ratio 2 (based on year-end receivables) better or worse than the 2009 ratio based on an average? 16. Is the inventory turnover ratio I (based on average inventory) better or worse in the most current year compared to prior years? 17. Is the 2009 inventory turnover ratio 2 (based on year-end inventory) better or worse than the 2009 ratio based on an average? 18. Is the return on total assets (ROA) ratio better or worse in the most current year compared to prior years?A B C D NETTLE DISTRIBUTION Balance Sheet December 31,2018 4 Assets Liabilities 5 Cash S 47,584 Accounts Payable S 67,905 6 Accounts Receivable 25,829 7 Office Supplies 4,074 8 Trucks S 48,942 Equity 9 Office Equipment S 1,25,071 Total Equity $ 1,83,595 10 Total Assets S 2,51,500 Total Liabilities and equity $ 2,51,500 11 12 NETTLE DISTIBUTION 13 Balance Sheet 14 December 31, 2019 15 Assets Liabilities 16 Cash 8,053 Accounts Payable 33,679 17 Accounts Receivable 20,250 Notes Payable 1,03,865 18 Office Supplies 2,984 19 Trucks 57,942 20 Office Equipment 1,33,224 Total Liabilities $ 1,37,544 21 Building 1,63,152 Equity 22 Land 40,713 Total Equity $ 2,88,774 23 Total Assets 4,26,318 Total Liabilities and Equity $ 4,26,318C. Assume that variable and marginal costs are 20% higher in New York than in San Antonio, and that the own price elasticity of demand is -3 in New York and -4 in San Antonio. If the two locations are pricing optimally, by what percentage would we expect prices in New York to exceed those in San Antonio? In your analyst report, what recommendation on pricing would you offer to management in order to enhance shareholder returns? (Hint: if X is 10% greater than Y, then X/Y = 1.1. Set the problem up as a ratio, just like this, and then use the markup equation for each city.)14. You are asked to conduct an interview of 6 randomly selected employees at your company to answer insurance questions. Use the random digit table starting at line 139 to choose 6 of the following individuals to be interviewed. Agarwal Anderson Baxter Bonds Bowman Castillo Cross Dewald Fernandez Fleming Gates Goel Gomez Hernandez Huang Kim Liao Mourning Naber Peters Pliego Puri Richards Rogers Santiago Shen Vega Wang
