MG-670 Name Student 1D 6. When analysts and investors determine the value of an investment, they should consider the size of the expected cash flows associated with owning the stock b. al the timing of the cash flows the riskiness of the cash flows d. all of the above none of the above e. e. 7. The primary formula of a balance sheet can be stated as total assets-total liabilities+ total equity total assets-total liabilities- total equity c. total equity- total assets+ total liabilities 8. Marshall's Clothing Company has total assets of $90 million, ROA of 24 % , ROE of 21% and a net profit margin of 12 % Based on the information above, what the company's net income? 9. Compared to last year, Home Depot reported a $62Bn increase in accounts receivables and a $38Bn dollar increase inaccounts payable. Circle the option below that best describes the cash flow impact to the company, assuming no other changes/information. HINT: Think in terms of whether each transaction had a positive negative impact to or cash flow. a. Overall cash flow increased by $100Bn b. Overall cash flow increased by $24Bn c. Overall cash flow decreased by $24Bn 10. Which ratio below best demonstrates the likelihood of a company missing interest payments? a. Sales divided by Accounts Receivable b. Gross Margin (Gross Profit divided by Sales) c. Interest Coverage (EBITDA divided by Interest Payments) d. Net Income Margin (Net Income divided by Sales)