Exam 2: Balance Sheet and Ratios

A company has inventory at cost of $ 176,255 in its balance sheet on 31 March 20X4. The inventory level at this date is 20% higher than it was at the beginning of the year. Cost of sales for the year ending 31 March 20X4 was $ 1,396,400. What is the inventory turnover in days?

Scholtes Corp. has current assets of € 90,000 and current liabilities of € 180,000. Which of the following transactions would improve their current ratio?

On 1 January, the equity of a business was $ 25,000. On 31 December of that year it had increased to $ 32,000. During the year the owner both introduced additional equity of $10,000 and took out $7,000 in dividends. Calculate the retained profit for the year.

A balance sheet shows the following balances (all in local currency): Advance deposits 3,000; Inventory 6,000; Accounts payable 2,000; Bank 3,000; Equity 5,000; Current maturities of long-term debt 30,000; Accounts receivable x. What is x?

Oogles Ltd. has listed the following amounts in its balance sheet: Cash 35,000; Buildings 75,000; Inventories 60,000; Tax payable 15,000; Accounts receivable 55,000; Equipment 55,000; Accounts payable 25,000; Dividend payable 10,000. What is the current ratio?

Current assets are $ 5,288. The current ratio is 1.26. How much is net working capital?

The bank lending money to ACME requires that company to have a debt-equity ratio of no more than 3.5 to 1. Another bank may calculate this type of ratio differently, e.g. as: debt / (debt + equity) * 100%. If done that way, the ratio would be:

'Advance Deposits' may be considered as debts to whom?

A business depreciates its real estate in an accounting period. What impact does this have on the Income Statement and on the Balance Sheet?

Sibelicious Corp. buys a new photocopier for €9,000. Included in this amount is a maintenance contract for the first half year, for €300. How will this be recorded on the balance sheet?

If TD = Total Debt, and TA = Total Assets, which of the following combinations represents a situation of LOW solvency?

If a balance sheet is ordered fixed assets - current assets, then the order on the other side should be what?

The Klinesbury hotel sold 5,250 rooms last April, at an average daily rate of $ 200. The property has 250 rooms. What was their RevPAR?

A restaurant owner wants to expand and has offered 1.3 million Canadian to buy another restaurant. To find out what she would be paying for goodwill, should the bid be accepted, she must know:

At LOW levels of leverage, what can be said of equity versus debt levels?