Note: The common shares are trading in the stock market for $15 per share

1. Refer to the financial statements of Flathead Lake Manufacturing Company. The firm's current ratio for 2012 indicates that Flathead's liquidity has ________ since 2011.

   risen

   fallen

   stayed the same

   The answer cannot be determined from the information given.

2. Refer to the financial statements of Flathead Lake Manufacturing Company. The firm's inventory turnover ratio is _________. (Please keep in mind that when a ratio involves both income statement and balance sheet numbers, the balance sheet numbers for the beginning and end of the year must be averaged.) 11.6 10.2 9.5 7.7

3. Refer to the financial statements of Flathead Lake Manufacturing Company. The firm's debt-to-equity ratio for 2012 is _________. 2.13 2.44 2.56 2.89

4. Refer to the financial statements of Flathead Lake Manufacturing Company. The firm's cash flow from operating activities for 2012 was _______. $810,000 $775,000 $755,000 $735,000

5. Refer to the financial statements of Flathead Lake Manufacturing Company. The industry average ACP is 32 days. How is Flathead doing in its collections relative to the industry? (Please keep in mind that when a ratio involves both income statement and balance sheet numbers, the balance sheet numbers for the beginning and end of the year must be averaged.)

   		Flathead's receivables are outstanding about 9 fewer days than the industry average.
   		Flathead's receivables are outstanding about 15 fewer days than the industry average.
   		Flathead's receivables are outstanding about 12 more days than the industry average.
   		Flathead's receivables are outstanding about 6 more days than the industry average

6. Refer to the financial statements of Flathead Lake Manufacturing Company. The firm's total asset turnover for 2012 is _________. (Please keep in mind that when a ratio involves both income statement and balance sheet numbers, the balance sheet numbers for the beginning and end of the year must be averaged.) 3.56 3.26 3.14 3.02

7. Refer to the financial statements of Flathead Lake Manufacturing Company. In 2012 Flathead generated ______ of EBIT for every dollar of sales.

   		$.075
   		$.086
   		$.092
   		$.099

8. Refer to the financial statements of Flathead Lake Manufacturing Company. The firm's return on equity ratio for 2012 is _________. (Please keep in mind that when a ratio involves both income statement and balance sheet numbers, the balance sheet numbers for the beginning and end of the year must be averaged.)

   		6.5%
   		26.5%
   		33.4%
   		38%

9. Refer to the financial statements of Flathead Lake Manufacturing Company. The firm's P/E ratio for 2012 is _________.

   		3.39
   		3.6
   		13.33
   		10.67

10. Refer to the financial statements of Flathead Lake Manufacturing Company. The firm's compound leverage ratio is __________. (Please keep in mind that when a ratio involves both income statement and balance sheet numbers, the balance sheet numbers for the beginning and end of the year must be averaged.)

    		1.5
    		2
    		2.5
    		3