Answered: Rhea Company has P9,000 in cash,…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 18MCQ

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The Kretovich Company had a quick ratio of 1.4, a current ratio of 3.0, a days’ sales outstanding of 36.5 days (based on a 365-day year), total current assets of $810,000, and cash and marketable securities of $120,000. What were Kretovich’s annual sales?
Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital expenditures of $112,900, cash dividends of $35,800, and average maturities of long-term debt over the next 5 years of $122,300. What is Chasses free cash flow and cash flow adequacy ratio? a. $94,300 and 0.77, respectively c. $130,100 and 1.06, respectively b. $94,300 and 0.82, respectively d. $165,900 and 1.36, respectively
Vigo Vacations has $200 million in total assets, $5 million in notes payable, and $25 million in long-term debt. What is the debt ratio?
Janah Company has P20,000 in cash, P8,000 in marketable securities, P36,000 in current receivables, P18,000 in inventories, and P68,000 in current liabilities. Janah’s quick ratio is closest to * Choices: 1.88. 1.21. .41. .94.
Oasis Products, Incorporated has current liabilities = $10 million, current ratio = 1.5 times, inventory turnover ratio = 12 times, average collection period = 20 days, and sales = $100 million. What is the value of their cash and marketable securities? Multiple Choice a.$1,187,215 b.$8,333,333 c.$17,146,188 d.$15,000,000
ABC has the following current assets: cash, $102 million; receivables, $94 million; inventory, $182 million; other current assets, $18 million. ABC also has the following liabilities: accounts payable, $98 million; long-term debt, $23 million. Based on these amounts, what is the acid-test ratio ? Numeric Response:?????????
Njenge Bank has the following balance sheet (in millions) with the risk weights in parentheses.                  Assets                                                                Liabilities and Equity          Cash                                      (0%) K20            Deposits                                   K175          OECD Interbank deposits (20%) K25            Subordinated debt (2.5 years)     K3          Mortgage loans                  (50%) K70            Cumulative preferred stock        K5          Consumer loans                (100%) K70            Equity                                          K2             Total Assets                               K185                  Total Liabilities & Equity    K185          In addition, the bank has K30 million in performance-related standby letters of credit (SLCs), and K300 million in six-year interest rate swaps. Credit conversion factors follow:          Performance-related standby LCs             50%…
Njenge Bank has the following balance sheet (in millions) with the risk weights in parentheses: Assets Liabilities and Equity          Cash                                      (0%) K20 Deposits                                     K175          OECD Interbank deposits (20%) K25 Subordinated debt (2.5 years) K3          Mortgage loans (50%) K70 Cumulative preferred stock K5          Consumer loans (100%) K70 Equity K2 Total Assets                               K185 Total Liabilities & Equity K185 In addition, the bank has K30 million in performance-related standby letters of credit (SLCs), and K300 million in six-year interest rate swaps.…
Njenge Bank has the following balance sheet (in millions) with the risk weights in parentheses.                  Assets                                                                Liabilities and Equity          Cash                                      (0%) K20            Deposits                                   K175          OECD Interbank deposits (20%) K25            Subordinated debt (2.5 years)     K3          Mortgage loans                  (50%) K70            Cumulative preferred stock        K5          Consumer loans                (100%) K70            Equity                                          K2             Total Assets                               K185                  Total Liabilities & Equity    K185          In addition, the bank has K30 million in performance-related standby letters of credit (SLCs), and K300 million in six-year interest rate swaps. Credit conversion factors follow:          Performance-related standby LCs             50%…
Mandesa, Inc has current liabilities of $8 million, current ratio of 2 times inventory turnover of 12 times, average collection period of 30 days, and credit sales of $64million. Calculate the value of cash and marketable securities.
The Brenmar Sales Company had a gross profit margin (gross profits÷sales) of 34 percent and sales of $9.2 million last year. 73 percent of the firm's sales are on credit, and the remainder are cash sales. Brenmar's current assets equal $1.2 million, its current liabilities equal $300,700, and it has $109,000 in cash plus marketable securities. a. If Brenmar's accounts receivable equal $562,900, what is its average collection period? b. If Brenmar reduces its average collection period to 25 days, what will be its new level of accounts receivable? c. Brenmar's inventory turnover ratio is 9.3 times. What is the level of Brenmar's inventories?
Under Armour has the following current assets: cash, $102 million; receivables, $94 million; inventory, $182 million; and other current assets, $18 million. Under Armour has the following liabilities: accounts payable, $98 million; current portion of long-term debt, $35 million; and long-term debt, $23 million. Based on these amounts, calculate the current ratio and the acid-test ratio for Under Armour.

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Rhea Company has P9,000 in cash, P11,000 in marketable securities, P26,000 in current receivables, P34,000 in inventories, and P40,000 in current liabilities. The Rhea's quick ratio is closest to * Choices: 1.35. 1.15. 1.73. 2.00.