Exam 5: Risk Analysis

Long-term ______________________________ represents the longer-term ability of the firm to generate cash internally or from external sources to satisfy plant capacity and debt repayment needs.

Doran Corp.has a current ratio of 6.Under which of the following scenarios might this indicate a ?

Refer to the financial statement data for Patriot Corp.for 2011 and 2010.Complete the table by computing the ratios. Financial Ratio to be calculated:

Bankruptcy analysis research has gone through many iterations,from univariate bankruptcy prediction models to sophisticated logit models.However,after examining the results of the research there appear to be a number of common factors that consistently explain bankruptcy.These factors can be grouped into investment factors,financing factors,operating factors.For each of the three groups discuss specific factors that have been found to significantly explain bankruptcy.

The operating cycle must not only generate cash to supply ________________________________________ needs,it must generate sufficient cash to service debt.

Which of the following properly links the factors affecting a firm's ability to generate cash with its need to use cash in financing?

Which of the following can companies use as collateral for a loan?

Mobile Company Mobile Company manufactures computer technology devices.Selected financial data for Mobile is presented below;use the information to answer the following questions: -Refer to the information for Mobile Company.Days of other financing required by Mobile at the end of 2010 would be:

Which of the following ratios is not a measure of long-term solvency risk?

Mobile Company Mobile Company manufactures computer technology devices.Selected financial data for Mobile is presented below;use the information to answer the following questions: -Refer to the information for Mobile Company.Mobile's 2010 Inventory Turnover ratio is:

Mobile Company Mobile Company manufactures computer technology devices.Selected financial data for Mobile is presented below;use the information to answer the following questions: -Refer to the information for Mobile Company.Mobile's days receivables outstanding at the end of 2010 was:

One common with the current ratio is that it is susceptible to "window dressing." If prior to the end of the accounting period Saxon Company has a current ratio of 1.5 and management wishes to boost its current ratio it may decide to:

Large current ratios indicate the availability of cash and near cash assets to repay ____________________ coming due within the next year.

The source of risk related to interest rate changes and demographic changes is ____________________.

One with debt ratios is that they provide no information about the ability of the firm to generate ________________________________________ to service debt.

When management takes deliberate steps at a balance sheet date to produce a better current ratio than is normal it is called ______________________________.

The source of risk related to management competence,strategic direction and lawsuits is _________________________.

Below is selected information from Marker's 2012 financial statements: -Marker's 2012 Liabilities to Shareholders' Equity ratio is:

Below is selected information from Marker's 2012 financial statements: -Marker's 2012 Long-term Debt to Shareholders' Equity ratio is:

Financially healthy firms frequently close any cash flow gaps in their operating cycles with ________________________________________.