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    Name: Date: Score:: Quiz I. Problem Solving (8 Items X 5 Points)

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    Raiza Cartago
    This document contains a quiz for the student with two sections - problem solving and essay. The problem solving section contains 8 multiple choice questions regarding the financial statements of ABC Corporation for years 201B and 201A. It tests the student's ability to analyze the financial ratios and perform calculations like inventory turnover, days' sales in receivables, times-interest-earned ratio, earnings-per-share, current ratio, profit margin, and debt ratio. The essay section contains two essay questions asking the student to discuss the limitations of analyzing only historical financial statements and to describe a local business and how its working capital would be useful to management and investors. The document provides rubrics to grade the student's answers.

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    Name: Date: Score:: Quiz I. Problem Solving (8 Items X 5 Points)

    Uploaded by

    Raiza Cartago
    373 views2 pages
    This document contains a quiz for the student with two sections - problem solving and essay. The problem solving section contains 8 multiple choice questions regarding the financial statements of ABC Corporation for years 201B and 201A. It tests the student's ability to analyze the financial ratios and perform calculations like inventory turnover, days' sales in receivables, times-interest-earned ratio, earnings-per-share, current ratio, profit margin, and debt ratio. The essay section contains two essay questions asking the student to discuss the limitations of analyzing only historical financial statements and to describe a local business and how its working capital would be useful to management and investors. The document provides rubrics to grade the student's answers.

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    02_Quiz_1(2)

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    This document contains a quiz for the student with two sections - problem solving and essay. The problem solving section contains 8 multiple choice questions regarding the financial statements of ABC Corporation for years 201B and 201A. It tests the student's ability to analyze the financial ratios and perform calculations like inventory turnover, days' sales in receivables, times-interest-earned ratio, earnings-per-share, current ratio, profit margin, and debt ratio. The essay section contains two essay questions asking the student to discuss the limitations of analyzing only historical financial statements and to describe a local business and how its working capital would be useful to management and investors. The document provides rubrics to grade the student's answers.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    373 views2 pages

    Name: Date: Score:: Quiz I. Problem Solving (8 Items X 5 Points)

    Uploaded by

    Raiza Cartago
    This document contains a quiz for the student with two sections - problem solving and essay. The problem solving section contains 8 multiple choice questions regarding the financial statements of ABC Corporation for years 201B and 201A. It tests the student's ability to analyze the financial ratios and perform calculations like inventory turnover, days' sales in receivables, times-interest-earned ratio, earnings-per-share, current ratio, profit margin, and debt ratio. The essay section contains two essay questions asking the student to discuss the limitations of analyzing only historical financial statements and to describe a local business and how its working capital would be useful to management and investors. The document provides rubrics to grade the student's answers.

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    © All Rights Reserved
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    BM1915

    NAME: DATE: SCORE:


    QUIZ

    I. PROBLEM SOLVING
    Answer the following items using the financial statements below. Encircle the letter of the correct
    answer. Show your computations. (8 items x 5 points)

    ABC Corporation
    Comparative Statement of Financial Position
    For the Years Ended 201B and 201A (in pesos)
    201B 201A
    Cash and Cash Equivalents 2,450 2,094
    Receivables 1,813 1,611
    Inventories 1,324 1,060
    Prepaid Expenses 1,709 2,120
    Total Current Assets 7,296 6885
    Noncurrent Assets 18,500 15,737
    Total Assets 25,796 22,622

    Current Liabilities 7,230 8,467


    Long-Term Liabilities 4,798 3,792
    Common Stock 6,568 4,363
    Retained Earnings 7,200 6,000
    Total Liabilities and Equity 25,796 22,622

    ABC Corporation
    Income Statement
    For the Year Ended 201B (in pesos)
    201B
    Sales 20,941
    Less: Cost of Goods Sold 7,055
    Gross Profit 13,886
    Less: Operating expenses 7,065
    Income from operations 6,821
    Less: Interest expense 210
    Income before taxes 6,611
    Less: Income tax 2,563
    Net Income 4,048

    1. Which statement best describes ABC’s acid-test ratio for 201B?


    a. Greater than 1 c. Less than 1
    b. Equal to 1 d. None of the above
    2. Inventory turnover (amount rounded)?
    a. Six (6) times c. Eight (8) times
    b. Seven (7) times d. Cannot be determined
    3. Days’ sales in receivables (amounts rounded)?
    a. 28 days c. 32 days
    b. 30 days d. 34 days
    4. Times-interest-earned ratio?
    a. 54.7% c. 32 times
    b. 19 times d. 34 times

    02 Quiz 1 *Property of STI


    Page 1 of 2
    BM1915

    5. The company has 2,500 shares of common stocks outstanding. What is the earnings-per-share?
    a. 1.62 c. 2.63
    b. 1.75 d. 2.73
    6. Current ratio?
    a. 0.99 c. 1.05
    b. 1.01 d. 1.09
    7. Profit margin?
    a. 19.33% c. 59.34%
    b. 31.57% d. 66.31%
    8. Debt ratio?
    a. 46.62% c. 87.36%
    b. 53.38% d. Cannot be determined

    II. ESSAY (2 items x 5 points)


    Read and analyze the items. Write your answer on the space provided.

    1. One of the limitations of financial statement analysis is that financial statements are based on
    historical costs. What is the danger in focusing solely on the data found in the historical financial
    statements?

    2. Describe a business that operates where you live and explain how knowing the working capital of
    that company would be useful to the management of that company and to outside investors.

    Rubric for Problem Solving:


    Performance Indicators Points
    Correct accounts and amounts used 3
    Computed final amounts are correct/balanced 2
    Total 5

    Rubric for Essay:


    Criteria Performance Indicators Points
    Content Provided pieces of evidence, supporting details, and 3
    factual scenarios
    Organization of ideas Expressed the points in a clear and logical 2
    arrangement of ideas in the paragraph
    TOTAL 5

    02 Quiz 1 *Property of STI


    Page 2 of 2

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