he following information applies to Questions $17$:

Leroy$$s Accounts $20$X$520$X$4$

Cash and cash equivalents $ $5,550$ $ $5,094$

Net receivables $1,8131,611$

Merchandise inventory $1,3241,500$

Prepaid expenses $1,7092,120$

Total current assets $10,39610,325$

Other assets $18,50015,737$

Total assets $ $28,896$ $ $26,062$

Total current liabilities $ $7,230$ $ $8,467$

Long$-$term liabilities $4,7983,792$

Common stock $6,5684,363$

Retained earnings $10,3009,440$

Total liabilities and equity $ $28,896$ $ $26,062$

Net sales revenue $ $25,000$

Cost of goods sold $7,055$

Operating expenses $7,064$

Operating income $6,821$

Interest expense $210$

Income tax expense $2,563$

Net income $ $8,107$

$1.$ Horizontal analysis of Leroy$$s balance sheet for $20$X$5$ would report $($amounts rounded$)$

A$.$ Cash and cash equivalents as $19\mathrm{.}2\%$ of Total assets.

B$.$ Inventory Turnover of $5$ times.

C$.13\mathrm{.}3\%$ decrease in Merchandise inventory.

D$.11\mathrm{.}7\%$ decrease in Merchandise inventory.

$2.$ Vertical analysis of Leroy$$s balance sheet for $20$X$5$ would report $($amounts rounded$)$

A$.$ Inventory Turnover of $5$ times.

B$.$ Current liabilities as $25\mathrm{.}0\%$ of Total assets.

C$.8\mathrm{.}2\%$ increase in Cash.

D$.9\mathrm{.}0\%$ increase in Cash.

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$3.$ A common$-$size income statement for Leroy would report $($amounts rounded$)$

A$.$ Inventory Turnover of $5$ times.

B$.$ Net sales revenue of $86\mathrm{.}5\%.$

C$.$ Net income of $19\mathrm{.}6\%.$

D$.$ Cost of goods sold at $28\mathrm{.}2\%.$

$4.$ What is Leroy$$s current ratio?

A$.0\mathrm{.}4$

B$.0\mathrm{.}8$

C$.1\mathrm{.}0$

D$.1\mathrm{.}4$

$5.$ Leroy$$s inventory turnover during $20$X$5$ was $($amounts rounded$)$

A$.5$ times.

B$.6$ times.

C$.7$ times.

D$.$ none of the above.

$6.$ Leroy$$s debt to equity ratio during $20$X$5$ was $($amounts rounded$)$

A$.0\mathrm{.}28.$

B$.0\mathrm{.}42.$

C$.0\mathrm{.}71.$

D$.1\mathrm{.}40.$

$7.$ Which measure expresses Leroy$$s times$-$interest$-$earned ratio $($amounts rounded$)?$

A$.51\mathrm{.}8\%$

B$.4$ times

C$.39$ times

D$.52$ times

$8.$ The annual report with financial statements that is filed with the SEC by a publicly traded

company is called a

A$.$ Form $10-$K$.$

B$.$ Form $10-$Q$.$

C$.$ report of independent registered public accounting firm.

D$.$ management discussion and analysis.

$9.$ Trend analysis is

A$.$ a form of vertical analysis.

B$.$ a form of horizontal analysis.

C$.$ both A and B$.$

D$.$ neither A nor B$.$

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$10.$ Which ratio provides a measure of a company$$s ability to pay long$-$term debt?

A$.$ Rate of return on total assets

B$.$ Price$/$earnings ratio

C$.$ Quick ratio

D$.$ Times$-$interest$-$earned ratio