I want to improve my current ratio. Which activity below will do this for me?

Select one:

a. Collect outstanding Accounts Receivable

b. Write-off bad inventory

c. Purchase more inventory on short-term credit (supplier accounts payable)

d. Pay off accounts payable using cash

e. There is not enough information to determine the correct approach without knowing what the current ratio currently is.

In its latest set of financials, a company presents the following information regarding its income statement:

Total Sales/Revenues $2,600,000

Tax Expense $120,000

Admin Expenses $550,000

Interest Expense $420,000

Cost of Goods Sold $1,200,000

Rent Expense $100,000

Assuming these 6 items are the only income statement entries provided by the company, the times interest earned (TIE) for the company is approximately what figure?

Select one:

a. 1.8

b. 0.5

c. 6.2

d. 2.4

e. 1.6

Identify the false statement regarding the format of the multi-step income statement:

Select one:

a. The order of the six profit points in a standard multi-step income statement is Gross profit followed by EBITDA followed by NOI then EBIT followed by EBT and finally Net Income.

b. Generally speaking, we reconstruct or restate the income statement so that NOI represents the dividing line between operating/recurring income and non-operating/non-recurring income.

c. EBITDA is placed in the income statement before depreciation and amortization expense

d. Operating expenses are shown above the line or above NOI.

e. Property taxes are presented after Earnings Before Taxes (EBT)

am looking at a balance sheet for a company for the past two years and I obtain the following information regarding the companys Plant, Property and Equipment (PPE). In the notes the company has explained that they straight-line depreciate all of their long-lived assets and they assume no salvage value for any of their depreciable assets:

From year-end 2014 Balance Sheet:

PPE (net of accumulated depreciation totaling $ 1.65 million) $ 8.76 million

From year-end 2013 Balance Sheet:

PPE (net of accumulated depreciation totaling $ 1.25 million) $ 9.16 million

Identify the true statement regarding this companys PPE:

Select one:

a. The company must have sold off PPE in 2014

b. The average total life of the PPE is approximately 20 years

c. The PPE has approximately 4 years of remaining life

d. Depreciation Expense for the PPE in 2014 is approximately $400,000

e. All of the statements shown are false.

Heavy use of operating lease financing will tend to

Select one:

A. Make a company appear more risky than it actually is because its debt ratio will appear lower

B. Make a company appear less risky than it actually is because its debt ratio will appear lower

C. Affect a company's cash flows but not its degree of risk

D. Have no effect on either cash flows or risk because the cash flows are already reflected in the income statement

Which of the following statements is/are true?

Select one:

A. Accelerated depreciation methods such as sum-of-years-digits lead to lower expenses/higher incomes earlier in an equipment's life and higher expenses/lower incomes later in the equipment's life.

B. If a company uses straight-line depreciation for its tax records, it must also use straight-line depreciation for its financial records presented to investors.

C. Differences between depreciation methods in financial records to investors and depreciation methods for tax purposes leads to deferred taxes.

D. If I use FIFO for tax purposes, I must also use FIFO for the financial records I present to my investors.

E. All of the above are false.