Ratio Analysis and Forecasting Quiz

30/1/2016
RatioAnalysisandForecastingQuiz|Coursera
Ratio Analysis and Forecasting Quiz

10preguntas
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
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
1.440
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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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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
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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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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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30/1/2016

Able to charge a higher price than Pooch Mart

Twenty years of historical data

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