QUIZ 1- BWFF2033 GROUP N

1. Myra Enterprise has accounts payable of RM 3,500, inventory of RM 8,512, cash of RM 2,263, fixed assets of RM 9,500, accounts receivable of RM 4,500 and long-term debt of RM 4,200. What is the value of the net working capital to total assets ratio? (Answer rounded to 2 decimal point)

1. 0.25
2. 0.39
3. 0.42
4. 0.48

2. Mei Shan paid RM3,000 in interest and RM2,500 in dividends last year. The times interest earned ratio is 3.5 and the depreciation expense is RM520. What is the value of the cash coverage ratio?

1. 3.23
2. 3.67
3. 3.78
4. 3.92

3. The Hamizahs Supermarket has sales of $820,000, costs of goods sold of $610,000, inventory of $110,000, and accounts receivable of $50,000. How many days, on average, does it take the firm to sell its inventory assuming that all sales are on credit?

1. 65.82 days
2. 74.19 days
3. 78.07 days
4. 84.69 days

4. Hannah's Enterprise has inventory of RM25,505, accounts receivable of RM5,300, net working capital of RM5,300, and accounts payable of RM49,300. What is the quick ratio?

1. 0.49
2. 0.59
3. 1.32
4. 1.55

5. According to the statement of cash flows, an increase in inventory will ________ the cash flow from ________ activities.

1. increase, operating
2. increase, financing
3. decrease, financing
4. decrease, operating

6. Park Inc. has net income of RM93,000, a price-earnings ratio of 14.5, and earnings per share of RM0.52. How many shares of stock are outstanding?

1. 165,745 units
2. 170,702 units
3. 171,308 units
4. 178,846 units

7. Marissa Farming currently has RM1500 in debt for every RM3,000 in equity. Assume the company uses some of its cash to decrease its debt while maintaining its current equity and net income. Which one of the following will decrease as a result of this action?

1. Profit margin
2. Return on assets
3. Equity multiplier
4. Total asset turnover

8. Which of the following is CORRECT in relation to pro-forma financial statement?

1. Fixed assets must increase if sales are projected to increase.
2. The addition to retained earnings is equal to net income less cash dividends.
3. Long-term debt varies directly with sales when a firm is currently operating at full capacity.
4. Net working capital is effected only when a firms sales are expected to exceed the firms current production capacity.

9. Kubang Pasu Petroleum Berhad (KPPB) has RM3,670 million as the beginning balance of retained earnings and after tax net income of RM949 million. The company paid RM348 million as dividends for preferred and common stockholders. What is the net increase in the retained earnings for KPPB at the end of the year?

1. RM348 million
2. RM601 million
3. RM3,670 million
4. RM4,271 million

Income statement of Syarikat Sidek Serigala for year ended 31 Disember 2017.

Sales	RM6,710,000
COGS	RM5,000,000
Depreciation	RM1,000,000
Interest	RM100,000
Tax	25%

10. Calculate net income of Syarikat Sidek Serigala?

1. RM810,000
2. RM710,000
3. RM532,500
4. RM457,500

11. If Syarikat has declared a dividend payout of RM250,000, what is the value of retained earning that will be carry out to balance sheet?

1. RM710,000.
2. RM532,500.
3. RM457,500
4. RM257,500.