Question
Use the following financial statements to answer Questions Kramerica Industries Income Statement Revenues $9,000 COGS 4,500 Gross Profit $4,500 Operating Expenses 3,500 Depreciation 300 EBIT
Use the following financial statements to answer Questions
| Kramerica Industries Income Statement | |
| Revenues | $9,000 |
| COGS | 4,500 |
| Gross Profit | $4,500 |
| Operating Expenses | 3,500 |
| Depreciation | 300 |
| EBIT | $700 |
| Interest Expense | 100 |
| EBT | $600 |
| Taxes | 175 |
| NI | ? |
| Dividends | ? |
| RE | $300 |
| Kramerica Industries Balance Sheet | |
| Cash and Equivalents | $500 |
| Accounts Receivable | 2,000 |
| Inventory | 600 |
| Net Fixed Assets | 1,300 |
| Total Assets | $4,400 |
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| Accounts Payable | $950 |
| Short-Term Notes Payable | 200 |
| Accruals | 75 |
| Long-Term Debt | 1,000 |
| Common Stock | 1,500 |
| Retained Earnings | 675 |
| Liabilities and Shareholders Equity | $4,400 |
| Kramerica Industries Statement of Cash Flows | |
| Operations |
|
| Net Income | ? |
| Depreciation | 300 |
| Accounts Receivable | 470 |
| Inventory | 300 |
| Accounts Payable | 250 |
| Cash Flow from Operations | $205 |
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| Cash Flow from Investing | ($200) |
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| Financing |
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| Short-Term Notes Payable | $200 |
| Long-Term Debt | $300 |
| Dividends | ? |
| Cash Flow from Financing | ? |
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| Cash and Equivalents | ? |
What is the additional funds needed for working capital (AFNWC)?
| a. | $80 | |
| b. | $520 | |
| c. | -$420 | |
| d. | $1,020 |
What is the net income (NI)?
| a. | $520 | |
| b. | $385 | |
| c. | $300 | |
| d. | $425 |
What is the number for Dividends?
| a. | $210 | |
| b. | $20 | |
| c. | $75 | |
| d. | $125 |
What is the number for Cash Flow from Financing?
| a. | $225 | |
| b. | $25 | |
| c. | $375 | |
| d. | $175 |
What is the number for Cash and Equivalents?
| a. | $780 | |
| b. | -$30 | |
| c. | -$370 | |
| d. | $380 |
What is the current ratio?
| a. | 2.75 | |
| b. | 1.39 | |
| c. | 2.12 | |
| d. | 2.53 |
What is the quick ratio?
| a. | 2.04 | |
| b. | 1.12 | |
| c. | 1.86 | |
| d. | 2.53 |
What is the net working capital?
| a. | $1,875 | |
| b. | $520 | |
| c. | $875 | |
| d. | $3,175 |
What is the days' inventory held?
| a. | 67.96 days | |
| b. | 48.67 days | |
| c. | 24.33 days | |
| d. | 81.11 days |
What is the days' sales outstanding?
| a. | 92.58 days | |
| b. | 162.22 days | |
| c. | 48.67 days | |
| d. | 81.11 days |
What is the days' payables outstanding?
| a. | 77.06 days | |
| b. | 81.11 days | |
| c. | 42.64 days | |
| d. | 38.53 day |
What is the operating cycle?
| a. | 129.78 days | |
| b. | 125.72 days | |
| c. | 158.17 days | |
| d. | 52.72 days |
What is the cash conversion cycle?
| a. | 44.61 days | |
| b. | 52.72 days | |
| c. | 109.50 days | |
| d. | 129.78 days |
What is the working capital requirement?
| a. | $1,875 | |
| b. | $2,075 | |
| c. | $1,375 | |
| d. | $1,575 |
What is the cash ratio?
| a. | 11.36% | |
| b. | 38.21 | |
| c. | 11.36 | |
| d. | 38.21% |
What is the days' cash held?
| a. | 52.72 days | |
| b. | 20.28 days | |
| c. | 40.56 days | |
| d. | 32.36 days |
What is the net liquid balance?
| a. | $300 | |
| b. | $225 | |
| c. | $100 | |
| d. | $425 |
What is the cash conversion efficiency?
| a. | 4.56% | |
| b. | 6.17% | |
| c. | 8.33% | |
| d. | 2.28% |
What is the sustainable growth rate?
| a. | 12% | |
| b. | 18% | |
| c. | 16% | |
| d. | 14% |
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Electronic Data Processing Controls And Auditing
Authors: W.Thomas Porter
1st Edition
0534009336, 978-0534009335
