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Question: QUESTION 31 If the sales are $10 million, total assets are $20 million, and inventories are $2 ...

QUESTION 31

1. If the sales are $10 million, total assets are $20 million, and inventories are $2 million, what is the inventory turnover ratio?

   	A.	2
   	B.	5
   	C.	10
   	D.	15

2.5 points   

QUESTION 32

1. If sales are $1,000, EBIT is $285, and interest charges are 85, what is the times-interest-earned ratio?

   		2.85
   		3.35
   		3.87
   		4.23

2.5 points   

QUESTION 33

1. If EBIT is $1 million, net income is $600,000, and sales are $2.5 million, what is the operating margin?

   	A.	0.24
   	B.	0.40
   	C.	2.0
   	D.	2.5

2.5 points   

QUESTION 34

1. If EBIT is $1 million, net income is $600,000, and sales are $2.5 million, what is the profit margin?

   	A.	0.24
   	B.	0.40
   	C.	1.00
   	D.	2.50

2.5 points   

QUESTION 35

1. If the price of the stock is $20, dividends per share are $2.00 and EPS are $4.00, what is the P/E ratio?

   		2
   		5
   		10
   		12

2.5 points   

QUESTION 36

1. Mr. and Mrs. Jones buy a house for $235,000. If the house appreciates at 5% annually, what would be the value of the house in 8 years?

   	A.	$256,873
   	B.	$321,908
   	C.	$347,202
   	D.	$467,812

2.5 points   

QUESTION 37

1. If Joe saves $6,000 per year for 25 years and earns 7% on his investment, how much money will he have after 25 years?

   	A.	$267,843
   	B.	$379,494
   	C.	$452,167
   	D.	$523,416

2.5 points   

QUESTION 38

1. Sarah invested $120,000 in the stock market 9 years ago. If earned 11% on her money annually, how much is her investment worth today?

   		$282,547
   		$298,578
   		$306,964
   		$386,345

2.5 points   

QUESTION 39

1. Dana has no savings right now but invests $8,000 per year for 18 years and earns 7% on her investment annually. How much money will she have after 18 years?

   	A.	$271,992
   	B.	$321,894
   	C.	$386,549
   	D.	$416,756

2.5 points   

QUESTION 40

1. Mr. and Mrs. Davis needs to have $125,000 to send their daughter to college in 12 years. They expect to earn 8% annually on their investment. What amount do they need to have today so that they can reach their financial goal of having $125,000 in 12 years?

   	A.	$41,267
   	B.	$49,639
   	C.	$56,789
   	D.	$61,325

Answer 1

Answers

31 B. 5

32 B. 3.35

33 B. .40

34 A .24

35 B. 5

36 C 347202

37 B 379494

38 C 306964

39 A 271992

40 B 49639