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2. The following is selected financial information for Joker Company for 2017.
Cash
$ 13,000
Accounts receivable
11,000
Current asset
36,000
Current liabilities
33,000
Long-term debt
170,000
Short-term debt
10,000
Total liabilities
230,000
Interest expense
15,000
Capital expenditures
16,000
Equity
46,000
Cash from operations
Earnings before interest and taxes
1,000
16,000
Compute the free operating cash flow to total debt for Joker Company.
a. 0.094
b. 0.739
c. -0.094
d. -0.083
5
3. Assume the following is select financial information for Kohl’s Corporation for fiscal 2016
($ millions).
Current assets....................................
$4,775
Current liabilities.................................
2,590
Interest expense.................................
303
Total liabilities.....................................
7,586
Shareholders’ equity...........................
6,508
Earnings before interest and
2,158
taxes.....
Compute the times interest earned ratio using Kohl’s reported financial information.
a. 0.140
b. 0.022
c. 7.122
d. 21.48
5. The following is selected financial information for Joker Company for 2017.
Cash
$ 13,000
Accounts receivable
11,000
Current asset
36,000
Current liabilities
33,000
Long-term debt
170,000
Short-term debt
10,000
Total liabilities
230,000
Interest expense
15,000
Capital expenditures
16,000
Equity
46,000
Cash from operations
Earnings before interest and taxes
1,000
16,000
Compute the cash from operations to total debt for Joker Company.
a. 0.004
b. 0.060
c. 0.055
d. 0.006
7. Assume the following is select financial information for Kohl’s Corporation for fiscal 2016
($ millions).
Current assets....................................
$4,775
Current liabilities.................................
2,590
Interest expense.................................
303
Total liabilities.....................................
7,586
Shareholders’ equity...........................
6,508
Earnings before interest and
2,158
taxes.....
Compute the liabilities-to-equity ratio using Kohl’s reported financial information.
a. 1.166
b. 0.858
c. 1.773
d. 0.949
10. The following is selected financial information for Joker Company for 2017.
Cash
$ 13,000
Accounts receivable
11,000
Current asset
36,000
Current liabilities
33,000
Long-term debt
170,000
Short-term debt
10,000
Total liabilities
230,000
Interest expense
15,000
Capital expenditures
16,000
Equity
46,000
Cash from operations
Earnings before interest and taxes
Compute the quick ratio for Joker Company.
a. 0.727
b. 1.091
c. 0.394
d. 0.333
1,000
16,000
12. The following is selected financial information for Joker Company for 2017.
Cash
$ 13,000
Accounts receivable
11,000
Current asset
36,000
Current liabilities
33,000
Long-term debt
170,000
Short-term debt
10,000
Total liabilities
230,000
Interest expense
15,000
Capital expenditures
16,000
Equity
46,000
Cash from operations
Earnings before interest and taxes
1,000
16,000
Compute the total debt to equity ratio for Joker Company.
a. 3.913
b. 3.696
c. 0.739
d. 2.425
13. Assume the following is select financial information for Kohl’s Corporation for fiscal 2016
($ millions).
Current assets....................................
$4,775
Current liabilities.................................
2,590
Interest expense.................................
303
Total liabilities.....................................
7,586
Shareholders’ equity...........................
6,508
Earnings before interest and
2,158
taxes.....
Compute the current ratio using Kohl’s reported financial information.
a. 0.542
b. 1.844
c. 0.734
d. 0.949
17. The following is selected financial information for Mouse Company for 2017.
Working capital
$ (30)
Retained earnings
(500)
Earnings before interest and tax
250
Market value of equity
100
Sales
3,000
Total assets
1,000
Total liabilities
1,500
Compute the Altman Z-score for Mouse Company.
a. 2.35
b. 2.89
c. 3.10
d. 4.62