1. An increase in a company's inventory turnover will ____________ its working capital requirement.
2. A decrease in the aging of a company's accounts payable will have a ______________ effect on cash flow.
3. An increase in depreciation expenses will have a ______________ effect on cash flow.
4. An increase in a company's working capital ratio generally indicates a(n) ______________ financial position.
5. From the list, choose two items that would be considered intangible assets on a balance sheet.
6. From the list, choose two examples of sources of funds found on the statement of changes in financial position (or statement of cash flow).
7. Which of the following is generally not considered part of the company's net worth:
8. In the majority of companies, a change to which of the following expense items would affect gross profit margin:
9. Which item does not appear on a company's income statement but is included in its cash flow budget?
10. A term debt to equity ratio of 3:1 indicates a company:
11. Consider the following company:
Sales
$2,300,000
Cost of goods
$1,800,000
Net profit
$175,000
Accounts receivable
$175,000
Inventory
$150,000
Fixed assets
$400,000
Overdraft
$100,000
Accounts payable
$150,000
Long term debt
$275,000
Net worth
$200,000
Determine the following, using only the information provided: (all answers must be IN NUMBERS)
Term debt equity ratio (round off to the nearest hundredth)
Accounts receivable (the answer must be in days, round off to the nearest whole number)
Your inventory turnover (round off to the nearest whole number)
Return on assets (%, round off to the nearest whole number)