NEED ANSWERS WITHIN 20 MINUTES- MULTIPLE CHOICE ANSWERS ARE AT END -4 QUESTIONS HERE

7.

Which one of these statements is correct?

Long-term debt is the residual difference between assets and liabilities.

Long-term debt requires a payout of cash within a stated time period.

Stockholders' equity increases as the liquidity of a firm increases.

Stockholders' equity is stated at market value on the balance sheet.

Net income that is not paid out in dividends decreases retained earnings.

23

If debt-to-equity is given by and total debt is "D", then total assets (TA) are given by:

D/

(D*+}/D

(D*+D)/

D*+D

None of the above.

26.

Lester's has $23,600 in sales, $13,200 in cost of goods sold, $2,300 in depreciation, $900 in interest expense, and $6,200 in selling, general, and administrative expenses. The firm owes no taxes for this year. What is the amount of the period costs that are included in the operating cash flow? $19,400

$7,000

$9,300

$20,300

None of the above

27.

Abbott compamy has net income of $125, sales of $2,400, total assets of $1,100, and total equity of $750. Interest expense is $200. What is the common-size statement value of the interest expense?

7.10%

8.33%

13.33%

18.18%

26.67%

29.

Which one of these statements is correct? A firm might be able to charge higher prices if it switches from a flexible to a restrictive short-term financial policy.

If a firm switches from a flexible short-term financial policy to a restrictive policy it is likely to see an increase in its uncollectible accounts receivable.

Future cash flows are expected to be higher if a firm adopts a flexible, rather than a restrictive, short-term financial policy.

If a firm adopts a restrictive short-term financial policy its current assets will be greater than if it adopts a flexible policy.

If a firm switches from a restrictive short-term financial policy to a flexible policy, its operating cycle will most likely decrease.