Ratio Analysis and Forecasting Quiz _ Coursera

30/1/2016

Ratio Analysis and Forecasting Quiz | Coursera

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Ratio Analysis and Forecasting Quiz 10 preguntas

1.  Which of the following ratios use de-levered net income? (check all that apply) Asset Turnover Return on Assets Financial Leverage Return on Sales Return on Equity

2.  Which of the following companies has achieved its level of Return on Equity primarily through a high reliance on debt financing?

Company

Return on Equity

Return on Assets

Financial Leverage

Return on Sales

Asset Turnover

Dog Nation

0.177

0.060

3.740

0.046

1.304

Dog Shoe Warehouse

0.178

0.119

1.501

0.065

1.828

Hound Smart

0.177

0.112

1.762

0.038

2.930

Paw Locker

0.177

0.126

1.430

0.065

1.927

Pooch Mart

0.177

0.111

1.639

0.057

1.938

Dog Nation Dog Shoe Warehouse https://www.coursera.org/learn/accounting­analytics/exam/btI5b/ratio­analysis­and­forecasting­quiz

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30/1/2016

Ratio Analysis and Forecasting Quiz | Coursera

Hound Smart Paw Locker Pooch Mart

3.  Paw Locker has the highest Return on Assets in its comparison group. Which of the following could be a secret to its success? (check all that apply) (Hint: look carefully at the definition of ROA to find only the items that will affect the ratio)

Company

Return on Equity

Return on Assets

Financial Leverage

Return on Sales

Asset Turnover

Dog Nation

0.177

0.060

3.740

0.026

2.338

Dog Shoe Warehouse

0.178

0.119

1.501

0.065

1.828

Hound Smart

0.177

0.112

1.762

0.038

2.930

Paw Locker

0.177

0.126

1.430

0.065

1.927

Pooch Mart

0.177

0.111

1.639

0.057

1.938

Able to charge a higher price than Pooch Mart Uses more equity financing than Dog Nation Pays less interest expense than Pooch Mart Uses less debt financing than Hound Smart Holds lower inventory levels than Dog Shoe Warehouse

4.  Which of the following companies has the lowest Return on Assets?

Return on sales

Asset turnover

BowWow Center

0.001

1.446

Dogstrom

0.069

1.465

MuttMax 0.008 https://www.coursera.org/learn/accounting­analytics/exam/btI5b/ratio­analysis­and­forecasting­quiz

1.440

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30/1/2016

Ratio Analysis and Forecasting Quiz | Coursera

MuttMax

0.008

1.440

Rex Retail

0.049

1.443

Trans Pup

0.077

1.459

MuttMax Dogstrom BowWow Center Rex Retail Trans Pup

5.  Dogwell decides to pay its suppliers more quickly to take advantage of discounts and thus acquire its raw materials for a lower price. Dogwell makes no other changes (e.g., it buys the same volume of raw material). Which of the following ratios would be affected by this decision? (check all that apply) Days receivable Gross margin Days payable Effective tax rate SG&A-to-sales

6.  Which of the following companies has the highest Effective Tax Rate? You can assume they all had similar levels of interest expense and non-operating gains and losses. (Hint: do not try to calculate the effective tax rate; just focus on the profitability ratios that combine to yield Return on Sales)

Company

Return on Sales

Gross Margin

SG&A Expense to Sales

Operating Margin

Advanced Puppy

0.066

0.530

0.393

0.106

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30/1/2016

Ratio Analysis and Forecasting Quiz | Coursera

Dog Shoe Warehouse

0.065

0.347

0.212

0.109

Dogtail Holdings

0.066

0.343

0.215

0.117

Lassie Corp

0.065

0.384

0.259

0.101

Paw Locker

0.065

0.329

0.209

0.101

Advanced Puppy Paw Locker Dog Shoe Warehouse Dogtail Holdings Lassie Corp

7.  Which of the following companies has the highest Net Trade Cycle?

Company

Asset Turnover

Days Receivable

Days Inventory

Days Payable

BowWow Center

1.445

7.811

65.486

10.494

Dogstrom

1.465

62.526

65.359

48.768

Mutt Max

1.440

12.237

206.248

8.208

Rex Retail

1.443

3.385

111.218

48.291

Trans Pup

1.459

4.254

221.326

125.969

Rex Retail Dogstrom BowWow Center MuttMax Trans Pup https://www.coursera.org/learn/accounting­analytics/exam/btI5b/ratio­analysis­and­forecasting­quiz

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30/1/2016

Ratio Analysis and Forecasting Quiz | Coursera

8.  Which company has the strongest short-term liquidity position?

Current Ratio

Quick Ratio

DebttoEquity

Long Term DebttoEquity

Bow-Wow Stores

1.6988

0.082

13.7750

8.8690

Destination Kennel

2.1415

0.2119

0.5256

0.0000

Dog Orange Group

1.2649

0.2948

3.1246

2.6663

Ren Inc

2.3944

0.4173

0.5006

0.0342

Spartan Dog

1.0683

0.3476

1.3526

0.4588

Ren Inc. Dog Orange Group Destination Kennel Bow-Wow Stores Spartan Dog

9.  Which of the following is needed to produce pro forma financial statements? (check all that apply) Common size cash flow statement Common size balance sheet Common size income statement Sales forecasts

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30/1/2016

Ratio Analysis and Forecasting Quiz | Coursera

Twenty years of historical data

10.  McDognals has sales of $100 million this year and a gross margin of 30%. Next year, sales are forecasted to grow 10% and the gross margin is forecasted to remain at 30%. What is McDognals’ forecasted Cost of Goods Sold for next year? $33 million $30 million $7 million $3 million $77 million $70 million

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