To calculate effective tangible net worth, an analyst should make all of the following adjustments EXCEPT:

A. Subtract intangible assets from net worth

B. Subtract subordinated debt from liabilities

c. Add intangible assets to liabilities

D. Add subordinated debt to net worth

When assessing the liquidity of a company, which of the following is the most conservative measure?

A. Net working capital

B. Quick ratio

c. Current ratio

D. Working capital/sale

A company with a liability structure that is well matched to its asset distribution can usually operate with

A. higher leverage

B. lower leverage

c. no leverage

D. increased liquidity

5. When evaluating a company's current assets, which of the following are expected to convert to cash during the operating cycle?

I. Accounts receivable I. Inventory Ill. Prepaid expenses IV. Deferred tax assets

A. 1&11

B. I&

c. 1, 11, & III

D. I, I, III, & IV