Quiz 3 (Module 4)
Question 1
Liquidity refers to:
Select one:
A. A company’s ability to meet its debt obligations
B. A company’s amount of financial leverage
C. A company’s cash availability
D. A company’s operati
...
Quiz 3 (Module 4)
Question 1
Liquidity refers to:
Select one:
A. A company’s ability to meet its debt obligations
B. A company’s amount of financial leverage
C. A company’s cash availability
D. A company’s operating cycle
E. A company’s ability to general sales from use of its assets
Question 2
Selected balance sheet data follow for Goodyear Tire & Rubber Company for the year ended
December 31, 2016 (in millions):
Total
Operating
Liabilities Total
Nonoperating
Liabilities Total
Current
Liabilities Total
Liabilities Total Liabilities
and Shareholders'
Equity
$6,307 $5,479 $4,817 $11,786 $16,511
What is the company's liabilities-to-equity ratio?
Select one:
A. 2.49
B. 1.40
C. 3.23
D. 0.71
E. None of the above
Question 3
Selected income statement data follow for Harley Davidson, Inc., for the year ended December 31,
2016 (in thousands):
Income before Provision
for
Income Taxes Interest
Expense Statutory
Tax Rate Provision for
Income Taxes Net
Income
$1,023,911 $29,670 37% $331,747 $692,164
What is the company's times interest earned ratio?
Select one:
A. 34.5
B. 24.3
C. 17.8
D. 35.5
E. None of the above
Question 4
The 2016 balance sheet of Whole Foods Market reports operating assets of $5,489 million,
operating liabilities of $2,066 million, and total liabilities of $3,117 million.
Whole Food's average net operating assets are:
Select one:
A. $3,423 million
B. $2,372 million
C. $3,562 million
D. $2,510 million
E. There is not enough information to calculate the amount.
Question 5
The current ratio is used to assess:
Select one:
A. Solvency
B. Bankruptcy position
C. Liquidity
D. Financial leverage
E. None of the above
Question 6
The fiscal 2016 balance sheet for Whole Foods Market reports the following data (in millions).
Cash and Cash
Equivalents Marketable
Securities Accounts
Receivable Merchandise
Inventories Current
Assets Current
Liabilities
$351 $379 $242 $517 $1,975 $1,341
What is the company's current ratio?
Select one:
A. 0.69
B. 1.38
C. 0.72
D. 1.47
E. None of the above
Question 7
Which of the following is a measure of liquidity?
Select one:
A. Liabilities-to-equity ratio = Total liabilities / Stockholder's equity
B. Times interest earned = Earnings before interest and taxes / Interest expense
C. Quick ratio = (Cash + Marketable securities + Accounts receivable) / Current liabilities
D. Return on net operating assets (RNOA)
E. All of the above
Feedback
Question 8
Selected ratios follow for Nike, Inc., for the year ended December 31, 2013 (in millions):
Return on Net
Operating Assets
(RNOA) Profit
Margin
(PM) Net Operating
Profit Margin
(NOPM) Asset
Turnover
(AT) Financial
Leverage
(FL)
43.6% 11.6% 11.4% 1.51 1.72
What is the company's return on equity (ROE) for the year?
Select one:
A. 13.1%
B. 32.2%
C. 17.5%
D. 30.1%
E. None of the above
Feedback
Question 9
Ratios provide one way to compare companies in the same industry regardless of their size.
Select one:
Question 10
The DuPont analysis disaggregates return on equity into profitability, productivity and leverage
components.
Select one:
True
False
Feedback
[Show More]
.png)
