Practice Quiz Chapter 02

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. Compute the firm's current assets.

a) $700,000 correct incorrect

b) $1,165,000 correct incorrect

c) $465,000 correct incorrect

d) $765,000 correct incorrect

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. Compute the firm's current liabilities.

a) $215,000 correct incorrect

b) $715,000 correct incorrect

c) $1,470,000 correct incorrect

d) $6150,000 correct incorrect

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. Compute the firm's working capital.

a) $200,000 correct incorrect

b) $350,000 correct incorrect

c) $250,000 correct incorrect

d) $680,000 correct incorrect

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. Compute shareholders' equity.

a) $375,000 correct incorrect

b) $755,000 correct incorrect

c) $400,000 correct incorrect

d) $550,000 correct incorrect

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. If the firm had a net income of $600,000 after taxes, what is the earning per share of common stock?

a) $30 correct incorrect

b) $50 correct incorrect

c) $60 correct incorrect

d) $40 correct incorrect

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. When the firm issued its common stock, what was the market price of the stock per share?

a) $40 correct incorrect

b) $60 correct incorrect

c) $20 correct incorrect

d) $25 correct incorrect

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. Assume the net income available to common shareholders being $550,000, what is the return to common equity?

a) 0.65 correct incorrect

b) 0.73 correct incorrect

c) 0.81 correct incorrect

d) 0.92 correct incorrect

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. Compute the firm's acid-test ratio.

a) 1.98 correct incorrect

b) 2.09 correct incorrect

c) 3 correct incorrect

d) 3.1 correct incorrect

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. Compute the firm's debt-to-equity (D/E) ratio.

a) 0.28 correct incorrect

b) 0.66 correct incorrect

c) 0.95 correct incorrect

d) 1.05 correct incorrect

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. Fintech Ltd. has reported $800,000 net income and 1,200,000 retained earnings this year. What is the dividend paid to shareholders during the year given last year retained earnings were $950,000?

a) $250,000 correct incorrect

b) $400,000 correct incorrect

c) $550,000 correct incorrect

d) $-150,000 correct incorrect