Question

5. Calculate the current ratio for 2018. Show work. A. 2.50 B. 2.80 C. 2.41 D. 2.25 6. In horizontal analysis, the current year is the base year. A. True B. False 7. On a common-sized income statement all items are stated as a percent of total assets or equities at year-end. A. True B. False 8. The relationship of each asset item as a percent of total assets is an example of vertical analysis. A. True B. False 9. The excess of current assets over current liabilities is referred to as working capital. A. True B. False 10. Solvency analysis focuses on the ability of a business to pay its current and noncurrent liabilities. A. True B. False

Answer 1

solution 5 option (B) is Correct working Notes: - Current Ratio - Current assets Current liabilities - Cash + Accounts Receivablest Inventory Accounts Payable - 25 + 55+60 -50 = 140 = 208 50 solution 6 B False Base Previous year în solution 7 solution 8 A A True. True solution 9 A True Solution 10 B True

solution 3 option (A) - Working Notes! - Cost of goods sold Inventory Tumover a Average inventory 80 50 - Average inventory a 1.6 times opening & closing - Yo tro Solution y option working Notes? (B) is Grrect EPS = Earnings available for Stockhaldor No. of shares 45 - 5 No. of share = $90 $10 (Par) a 9 Shares

solution. 11 option (c) is consect working Notes: Property, plant and equipment to Total assets ISS Yoo = 54-397

solution 2 option (D) is Correct working Notes % decrease in accounts Receivables 8.33%