Financial Accounting for Business

5 questions about ( Financial Statement Analysis ) chapter

1)Presented below is the asset and liability section of the Statement of Financial Position for Acme Corporation as at December 31, 20x0:

Assets

Cash and cash equivalents

$8043

Inventory

30123

Prepaid expenses

4584

Accounts receivable

61927

Intangible Assets

13099

Property and Equipment

75171

Liabilities

Accounts Payable

15047

Current portion of long-term debt

34786

Long-term debt

75057

What is Acme Corporation's long-term debt-to-equity ratio?

Select one:

a. 1.10

b. 1.84

c. 0.00

d. 1.61

2)The following are selected account balances at December 31, 20x5:

Accounts receivable $391856

Cash 23558

Common shares 461700

Current liabilities 311228

Equipment:167736

Inventory 374093

What is the quick ratio at December 31, 20x5?

Select one:

a. 1.26

b. 2.82

c. 1.33

d. 2.54

3)Chongo Co. had the following balances reported on their December 31st 20x9 financial statements:

Mortgage payable

$911987

Total Assets

$4049994

Long-term bank loan

$815132

Accounts payable

$543170

Other current liabilities

$217073

What is the debt-to-equity ratio for Chongo Co. using the information above? Debt is defined as long-term liabilities only. All of the company's liabilities are listed above.

Select one:

a. 1.59

b. 1.11

c. 0.43

d. 0.61

4)McEarchern Co. had sales of $364751, sales discounts of $6243, cost of goods sold of $262635, operating expenses of $62765, and interest revenue of $2749. What is the gross profit ratio?

Select one:

a. 26.7%

b. 10.0%

c. 73.3%

d. 0%

5)

You are given the following information for the year 20x9:

Total net sales

$329317

Net cash sales

65893

Accounts receivable at beginning of year

53265

Accounts receivable at end of year

74177

Inventory at beginning of year

22571

Inventory at end of year

63762

What is the days sales in accounts receivable for 20x9?

Select one:

a. 88 days

b. 177 days

c. 71 days

d. 60 days

Thank you!