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Sales $125,679 Cash $ 9,082 Cost of Goods Sold 42,008 Inventory 8,565 Gross Profit 83,671 Current Assets 340,708 Net Income 13,684 Total Assets 495,023 Operating

Sales

$125,679

Cash

$ 9,082

Cost of Goods Sold

42,008

Inventory

8,565

Gross Profit

83,671

Current Assets

340,708

Net Income

13,684

Total Assets

495,023

Operating Cash Flow

32,195

Current Liabilities

198,904

Earnings per share

1.38

Total Liabilities

440,111

Dividends per share

0.66

Total Equity

54,824

Net Income (fiscal year 2000)

12,735

Total Assets (fiscal year 2000)

437,006

Sales (fiscal year 2000)

129,417

Inventory (fiscal year 2000)

7,812

QUESTION 15

  1. Following Question 12, GE's 2001 Long-term Debt to Equity Ratio is:

    a.

    3.6

    b.

    9.0

    c.

    8.0

    d.

    4.4

QUESTION 16

  1. Following Question 12, GE's 2001 Return on Assets is:

    a.

    2.9%

    b.

    27.0%

    c.

    2.8%

    d.

    25.0%

QUESTION 17

  1. Following Question 12, GE's 2001 Dividend Payout is:

    a.

    0.01%

    b.

    42.5%

    c.

    10.9%

    d.

    47.8%

QUESTION 18

  1. Which of the following ratios is part of the Du Pont Model?

    a.

    Current Ratio

    b.

    Return on Equity

    c.

    Operating Cash Flow Ratio

    d.

    Dividend Payout

QUESTION 19

  1. Using the Du Pont Model, solvency (leverage) is measured as:

    a.

    Sales / average working capital

    b.

    Average total assets / average common equity

    c.

    Sales / average total assets

    d.

    Net income / sales

QUESTION 20

  1. Using the Du Pont Model, return on assets can be calculated as:

    a.

    Return on Sales x Asset Turnover

    b.

    Gross Margin x Inventory Turnover

    c.

    Return on Equity x Total Assets

    d.

    Return on Sales x Return on Assets

QUESTION 21

  1. A limitation on the use of ratios analysis is:

    a.

    Relative size of the companies is not considered

    b.

    The numbers used are assumed to be correct

    c.

    Important qualitative issues such as business strategy are not involved

    d.

    It can be difficult to determine what results are good or bad

    e.

    All of the above

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