Week 2
Quiz 1
#1	A firm has
	Total Debt	$1,450
	Debt to equity	30%
#1	What is the value of the Total Assets?
	a	Total Assets =	$6,283.33
	b	Total Assets =	$6,832.33
	c	Total Assets =	$7,654.33
	d	Total Assets =	$5,876.33
#2	NBC has
	Sales	$2,880
	cost of goods sold	$2,220
	inventory	$516
	accounts receivable	$436
#2	How many days, on average, does it take NBC to sell its inventory?
	a	Days of Inventory =	84.84
	b	Days of Inventory =	48.48
	c	Days of Inventory =	75.75
	d	Days of Inventory =	65.65
#3	CBS has
	Net working Capital	$560
	Net fixed Assets	$2,306
	Sales	$6,700
	Current Liabilities	$870
#3	How many dollars worth of sales are generated from every $1 in Total Assets?
	a	Sales generated by $1 in Total Assets =	1.79
	b	Sales generated by $1 in Total Assets =	1.97
	c	Sales generated by $1 in Total Assets =	1.75
	d	Sales generated by $1 in Total Assets =	2.06
#4		2020 Income Statement
	Net sales	$9,390
	Cost of goods sold	$7,660
	Depreciation	$455
	Earnings before interest and taxes	$1,275
	Interest paid	$100
	Taxable income	$1,175
	Taxes	$411
	Net income	$764
		Balance Sheet
		2019	2020
	Cash	$210	$240
	Accounts rec.	$960	$860
	Inventory	$1,750	$1,665
	Total current Assets	$2,920	$2,765
	Net fixed assets	$3,370	$3,910
	Total assets	$6,290	$6,675
	Accounts Payable	$1,205	$1,335
	LongTerm Debt	$1,185	$1,355
	Common Stock	$3,300	$3,345
	Retained Earnings	$600	$640
		$6,290	$6,675
#4	What is the change in net working capital in 2020?
	a	Change in Working Capital in 2020 =	($285)
	b	Change in Working Capital in 2020 =	$285
	c	Change in Working Capital in 2020 =	$585
	d	Change in Working Capital in 2020 =	($585)
#5	Refer to the data in Problem #4
	What is the EBITDA Margin in 2020?
	a	EBITDA Margin in 2020 =	18.42%
	b	EBITDA Margin in 2020 =	15.75%
	c	EBITDA Margin in 2020 =	14.82%
	d	EBITDA Margin in 2020 =	19.25%
#6	Refer to the Data in Problem #4
	What is the Days of Payables in 2020?
	a	Days of Payables =	63.61
	b	Days of Payables =	36.16
	c	Days of Payables =	55.61
	d	Days of Payables =	72.72
#7	A company has the following data. It wants to create the Receivable Turnover based on Credit Sales.
	Net Income	$182,000
	Profit Margin	7.60%
	Accounts Receivable	$121,370
	Sales portion on credit	80%
	What is the companys days sales in receivables?
	a	Days of Receivables =	15.78
	b	Days of Receivables =	14.78
	c	Days of Receivables =	16.778
	d	Days of Receivables =	17.78
#8	The Border company had the following data:
	Sales	$2,500,000
	Cost of goods sold	$987,654
	Operating Costs	$500,000
	Depreciation	$126,987
	Interest Expense	$98,000
	Tax rate	40.00%
	What is the Interest Coverage for the firm?
	a	Interest Coverage =	9.03
	b	Interest Coverage =	8.03
	c	Interest Coverage =	10.03
	d	Interest Coverage =	3.03
#9	You have found the following information.
	The P/E ratio in 2019	15
	The P/E ratio in 2020	18.5
	Which of the following statements is the most accurate?
	a	The stock price has become relatively expensive.
	b	The stock price has become relatively inexpensive.
	c	The stock price has been relatively unchanged.
	d	The P/E ratio does not relate to the stock price.
#10	Which of the following statements is the most accuarate?
	a	Efficiency ratios measure how well assets turn into sales.
	b	Efficiency ratios measure how well assets turn into profits.
	c	Efficiency ratios measure how well assets turn into debt.
	d	Efficiency ratios measure how well assets relate to liabilities.