Exam 14: Financial Analysis and Long-Term Financial Planning

Which one of the following types of financial ratios does not get all of its information from a firm's income statements and balance sheets?

(Multiple Choice)

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Question 21

(Net income ∕ Total assets)

(Multiple Choice)

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Question 22

(Earnings before interest & taxes ∕ Net sales)

(Multiple Choice)

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Question 23

The ability of a firm to meet its short-term debt obligations as they come due is indicated by which of the following ratios:

(Multiple Choice)

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Question 24

It is common practice to group ratios into five basic categories. Which one of the following does not belong to these four areas?

(Multiple Choice)

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Question 25

The _______________ ratio is computed as earnings before interest and taxes divided by interest expense:

(Multiple Choice)

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Question 26

Earnings before interest and taxes (EBIT) is another way of describing:

(Multiple Choice)

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Question 27

If a firm has a receivables turnover of 12, on average, which of the following would be the firm's average collection period?

(Multiple Choice)

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Question 28

Which of the following statements is false?

(Multiple Choice)

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Question 29

The operating break-even sales level is not sensitive to which of the following variables?

(Multiple Choice)

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Question 30

Which of the following is a variable cost?

(Multiple Choice)

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Question 31

The operating profit margin is calculated as the firms earnings before interest and taxes divided by net sales.

(True/False)

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Question 32

Net working capital indicates the percentage of current liabilities to current assets.

(True/False)

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Question 33

Total debt / Total assets

(Multiple Choice)

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Question 34

The net profit margin is an example of a market value ratio.

(True/False)

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Question 35

The average collection period is calculated as the average accounts receivable divided by the average net sales per day.

(True/False)

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Question 36

A firm has fixed operating costs of $10,000, the sale price per unit of its product is $25, and its variable cost per unit is $15. The firm's operating breakeven point in units is

(Multiple Choice)

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Question 37

Find the average payment period if accounts payable is 550,000, cost of goods sold is $654,000, and sales are $5,000,000.

(Multiple Choice)

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Question 38

Break-even analysis is used to estimate how many units of products must be sold in order for the firm to have a reasonable profit.

(True/False)

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Question 39

The fixed charge coverage ratio indicates the ability of a firm to meet its contractual obligations for interest, leases, and debt principal repayments out of its operating income.

(True/False)

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Question 40

Showing 21 - 40 of 196

Which one of the following types of financial ratios does not get all of its information from a firm's income statements and balance sheets?

(Net income ∕ Total assets)

(Earnings before interest & taxes ∕ Net sales)

The ability of a firm to meet its short-term debt obligations as they come due is indicated by which of the following ratios:

It is common practice to group ratios into five basic categories. Which one of the following does not belong to these four areas?

The _______________ ratio is computed as earnings before interest and taxes divided by interest expense:

Earnings before interest and taxes (EBIT) is another way of describing:

If a firm has a receivables turnover of 12, on average, which of the following would be the firm's average collection period?

Which of the following statements is false?

The operating break-even sales level is not sensitive to which of the following variables?

Which of the following is a variable cost?

The operating profit margin is calculated as the firms earnings before interest and taxes divided by net sales.

Net working capital indicates the percentage of current liabilities to current assets.

Total debt / Total assets

The net profit margin is an example of a market value ratio.

The average collection period is calculated as the average accounts receivable divided by the average net sales per day.

A firm has fixed operating costs of $10,000, the sale price per unit of its product is $25, and its variable cost per unit is $15. The firm's operating breakeven point in units is

Find the average payment period if accounts payable is 550,000, cost of goods sold is $654,000, and sales are $5,000,000.

Break-even analysis is used to estimate how many units of products must be sold in order for the firm to have a reasonable profit.

The fixed charge coverage ratio indicates the ability of a firm to meet its contractual obligations for interest, leases, and debt principal repayments out of its operating income.

The Financial Environment

Money and the Monetary System

Banks and Other Financial Institutions

Federal Reserve System

Policy Makers and the Money Supply

International Finance and Trade

Savings and Investment Process

Interest Rates

Time Value of Money

Bonds and Stocks: Characteristics and Valuations

Securities and Markets

Financial Return and Risk Concepts

Business Organization and Financial Data

Managing Working Capital

Short-Term Business Financing

Capital Budgeting Analysis

Capital Structure and the Cost of Capital

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