Exercises on ratio analysis 2021 test no 3 PDF

Title	Exercises on ratio analysis 2021 test no 3
Author	light dark
Course	financial mgt
Institution	Universidad de las Californias
Pages	2
File Size	46.4 KB
File Type	PDF
Total Downloads	159
Total Views	254

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Download Exercises on ratio analysis 2021 test no 3 PDF

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Exercises on ratio analysis 2021          

Sales amounts to 1M Gross profit = 40% Operating expenses = 15% of sales Debt to equity equals 25% Total assets = 5M Current assets = 400,000 Long term debt = 850,000 Interest rate from long term debt =10% Tax rate 25% Current assets includes AR, inventory and cash. AR amounted to 200,000 while the cash amounted to 50,000.

Calculate the following

1. What is the current ratio? a. 1.67 b. 3.33 c. 2.67 d. 3.67 answer: C

2. calculate the debt ratio a. 25% b. 20% c. 40% d. 35% answer : B 3. what is times interest earned ratio? a. 2.54 b. 3.24 c. 2.74 d. 2.94 answer: D 4. What is the company’s return on total asset? a. 2.48% b. 4.57% c. 1.90% d. 2.30% Answer: A 5. Calculate the days sales in inventory? a. 90 days b. 60 days c. 120 days d. 75 days answer:A...