Operating leases are now required to be included in the balance sheet. This impacts both assets and liabilities.The effect of this accounting change will impact which of the following ratios?

	a.	debt/equity ratio
	b.	times interest earned ratio
	c.	inventory turnover
	d.	current ratio
	e.	Days' sales in receivables

The debt ratio indicates the:

	a.	funding provided by owners and investors.
	b.	company is highly leveraged when the ratio is low.
	c.	company is more highly leveraged when the ratio is high.
	d.	ability of the firm to pay its current obligations.
	e.	efficiency of the use of total assets.

he following 4th quarter information was released by Costco:

Fourth quarter U.S. online sales grew 26.2 percent as compared to the same period in the previous year. Full year results show U.S. online sales year-over-year growth was 32.2%. Overall, full year total company sales, including both online and store sales, increased 9.5% year-over-year.

Which of the following would NOT explain what this is about?

	a.	Profits for the full year just ended increased 9.5% over the prior year.
	b.	Online sales grew at a greater rate than store sales.
	c.	Total sales reported indicate year-over-year growth.
	d.	The data in the news release was computed using horizontal analysis based in the income statement.
	e.	Revenues generated by online sales increased for both the most recent quarter and full year as compared to the same periods one year ago.

You are evaluating company financial performance. Which types of quantitative data are most meaningful for financial statement analysis?

	a.	Using only dollar amounts ($)
	b.	Using only computed ratios (%'s, #'s)
	c.	It is not meaningful to perform financial statement analysis. Just read the company notes.
	d.	Using both dollar amounts ($) and computed ratios, (%s, #'s)
	e.	Dollar amounts and computed ratios should never be used in the same analysis