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Accounting · Studypool

Accounting Question

9 simple finance questions & Quiz that's 40 minutes long. There should be about 10 questions basically the same as the questions below. We can start the quiz in about 3 hours.

QUESTION 1

  1. Last Year, a corporation had a book value of equity of $381.09 million of USDs, 13.29 million shares outstanding,and a market price of $43.05 per share. The corporation also had cash of $4.01 million of USDs, and total debt of$415.01 million USDs. What was the corporation's market-to-book ratio?NOTE: This is a ratio, not a percentage

5 points

QUESTION 2

  1. Last Year, a corporation had a book value of equity of $381.77 million of USDs, 14.04 million shares outstanding,and a market price of $42.14 per share. The corporation also had cash of $4.60 million of USDs, and total debt of$404.09 million USDs. What was the corporation's book debt-equity ratio?NOTE: This is a ratio, not a percentage

5 points

QUESTION 3

  1. Last Year, a corporation had a book value of equity of $354.87 million of USDs, 13.30 million shares outstanding,and a market price of $44.28 per share. The corporation also had cash of $4.25 million of USDs, and total debt of$390.72 million USDs. What was the corporation's enterprise value?NOTE: Answer in Millions.

10 points

QUESTION 4

  1. In Fiscal year 2018, Firm A had a revenue of 14.71M, gross profit of 6.66M, and net income of 4.12M. Firm B had a gross profit margin of 54%, Revenues for 69.8M and its difference between gross profit and net profit was 38.0M. Which firm was more profitable in 2018? (Hint: Calculate the net profit margin for firm A)NOTE: Answer in percentages. If your answer is 0.0204, You must answer 2.04

10 points

QUESTION 5

  1. In Fiscal year 2018, Firm A had a revenue of 11.99M, gross profit of 6.93M, and net income of 5.70M. Firm B had a gross profit margin of 51%, Revenues for 69.2M and its difference between gross profit and net profit was 30.6M. Which firm was more profitable in 2018? (Hint: Calculate the net profit margin for firm B)NOTE: Answer in percentages. If your answer is 0.0204, You must answer 2.04

10 points

QUESTION 6

  1. Use the following Income Statement and Balance Sheet Information for 2018 to answer the question below. This is a Retail Company. All numbers are in Millions.
    Income Statement
    Total Sales216.5
    Cost of Sales155.4
    Gross Profit216.5-155.4
    Selling and Administrative Expenses16.9
    Research and Development 6.4
    Depreciation and Amortization3.6
    Other Income4.8
    EBIT216.5-155.4-16.9-6.4-3.6+4.8
    Interest Expense6.2
    Pretax Income216.5-155.4-16.9-6.4-3.6+4.8-6.2
    Taxes( 216.5-155.4-16.9-6.4-3.6+4.8-6.2 )*0.30
    Net Income( 216.5-155.4-16.9-6.4-3.6+4.8-6.2 )*0.70
    Balance Sheet
    Assets Liabilities
    Cash66.9Accounts Payable44.7
    Accounts Receivable50.6Notes Payable/Short term debt1.6
    Inventories6.0
    Total Current Assets66.9+50.6+6.0Total Current Liabilities44.7+1.6
    Net property, plant and equipment97.1Long-term debt84.7
    Total long-term assets97.1Total long-term debt liabilities84.7
    Total Liabilities44.7+1.6+84.7
    Stockholders' Equity (Total Equity)66.9+ 50.6+6.0+97.1-44.7-1.6-84.7
    Total Assets66.9+50.6+6.0+97.1Total Liabilities and Stockholders' Equity44.7+1.6+84.7+ 66.9+ 50.6+6.0+97.1-44.7-1.6-84.7

    What was the company's ROE in 2018?NOTE: (Use the numbers as is). Use four decimals for your answers

15 points

QUESTION 7

  1. Use the following Income Statement and Balance Sheet Information for 2018 to answer the question below. This is a Retail Company. All numbers are in Millions.
    Income Statement
    Total Sales212.6
    Cost of Sales152.3
    Gross Profit212.6-152.3
    Selling and Administrative Expenses20.5
    Research and Development 6.1
    Depreciation and Amortization2.6
    Other Income2.6
    EBIT212.6-152.3-20.5-6.1-2.6+2.6
    Interest Expense6.7
    Pretax Income212.6-152.3-20.5-6.1-2.6+2.6-6.7
    Taxes( 212.6-152.3-20.5-6.1-2.6+2.6-6.7 )*0.30
    Net Income( 212.6-152.3-20.5-6.1-2.6+2.6-6.7 )*0.70
    Balance Sheet
    Assets Liabilities
    Cash63.2Accounts Payable48.8
    Accounts Receivable50.4Notes Payable/Short term debt1.5
    Inventories5.5
    Total Current Assets63.2+50.4+5.5Total Current Liabilities48.8+1.5
    Net property, plant and equipment90.8Long-term debt85.1
    Total long-term assets90.8Total long-term debt liabilities85.1
    Total Liabilities48.8+1.5+85.1
    Stockholders' Equity (Total Equity)63.2+ 50.4+5.5+90.8-48.8-1.5-85.1
    Total Assets63.2+50.4+5.5+90.8Total Liabilities and Stockholders' Equity48.8+1.5+85.1+ 63.2+ 50.4+5.5+90.8-48.8-1.5-85.1

    If the corporation has 27 million shares outstanding, what is its EPS in 2018?NOTE: Use the numbers as is. Use four decimals for your answers

15 points

QUESTION 8

  1. Use the following Income Statement and Balance Sheet Information for 2018 to answer the question below. This is a Retail Company. All numbers are in Millions.
    Income Statement
    Total Sales204.5
    Cost of Sales146.3
    Gross Profit204.5-146.3
    Selling and Administrative Expenses19.5
    Research and Development 5.4
    Depreciation and Amortization2.9
    Other Income3.6
    EBIT204.5-146.3-19.5-5.4-2.9+3.6
    Interest Expense5.1
    Pretax Income204.5-146.3-19.5-5.4-2.9+3.6-5.1
    Taxes( 204.5-146.3-19.5-5.4-2.9+3.6-5.1 )*0.30
    Net Income( 204.5-146.3-19.5-5.4-2.9+3.6-5.1 )*0.70
    Balance Sheet
    Assets Liabilities
    Cash72.7Accounts Payable49.4
    Accounts Receivable43.7Notes Payable/Short term debt1.3
    Inventories5.4
    Total Current Assets72.7+43.7+5.4Total Current Liabilities49.4+1.3
    Net property, plant and equipment96.3Long-term debt83.8
    Total long-term assets96.3Total long-term debt liabilities83.8
    Total Liabilities49.4+1.3+83.8
    Stockholders' Equity (Total Equity)72.7+ 43.7+5.4+96.3-49.4-1.3-83.8
    Total Assets72.7+43.7+5.4+96.3Total Liabilities and Stockholders' Equity49.4+1.3+83.8+ 72.7+ 43.7+5.4+96.3-49.4-1.3-83.8

    What is the company's turnover ratio?NOTE: Use the numbers as is. Use four decimals for your answers

15 points

QUESTION 9

  1. Use the following Income Statement and Balance Sheet Information for 2018 to answer the question below. This is a Retail Company. All numbers are in Millions.
    Income Statement
    Total Sales239.8
    Cost of Sales152.6
    Gross Profit239.8-152.6
    Selling and Administrative Expenses24.3
    Research and Development 7.0
    Depreciation and Amortization2.4
    Other Income4.4
    EBIT, Operating Profit239.8-152.6-24.3-7.0-2.4+4.4
    Interest Expense6.5
    Pretax Income239.8-152.6-24.3-7.0-2.4+4.4-6.5
    Taxes( 239.8-152.6-24.3-7.0-2.4+4.4-6.5 )*0.30
    Net Income( 239.8-152.6-24.3-7.0-2.4+4.4-6.5 )*0.70
    Balance Sheet
    Assets Liabilities
    Cash72.0Accounts Payable48.4
    Accounts Receivable50.3Notes Payable/Short term debt1.4
    Inventories7.6
    Total Current Assets72.0+50.3+7.6Total Current Liabilities48.4+1.4
    Net property, plant and equipment100.3Long-term debt82.0
    Total long-term assets100.3Total long-term debt liabilities82.0
    Total Liabilities48.4+1.4+82.0
    Stockholders' Equity (Total Equity)72.0+ 50.3+7.6+100.3-48.4-1.4-82.0
    Total Assets72.0+50.3+7.6+100.3Total Liabilities and Stockholders' Equity48.4+1.4+82.0+ 72.0+ 50.3+7.6+100.3-48.4-1.4-82.0

    What was the company's Current Ratio in 2018?NOTE: (Use the numbers as is). Use four decimals for your answers

15 points

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