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NEW QUESTION: 1
The following data have been extracted from the financial statements of a firm for two years, 1991 and
1992:
1991 1992
Assets 9,947 9,682
Sales 11,035 10,377
Current liabilities 4,193 3,920
Non-current liabilities 3,827 3,476
The asset turnover and the equity turnover for 1992 equal ________.
A. 1.34, 6.38
B. 1.06, 4.93
C. 2.11, 3.92
D. 0.98, 2.56
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Total asset turnover = net sales/average total assets
Total equity turnover = net sales/average equity
The total liabilities in 1991 = 4,193 + 3,827 = 8,020 and total liabilities in 1992 = 3,920 + 3,476 = 7,396.
Therefore, using the equation,
Total Assets = Total Liabilities + Total Equity,
the equity in 1991 was 9,947 - 8020 = 1,927 and in 1992, it was 9,682 - 7,396 = 2,286. Thus, the average equity for 1992 equals (1,927 + 2,286)/2 = 2,107 and average assets for 1992 equal (9,682 + 9,947)/2
9,815. Therefore, asset turnover for 1992 = 10,377/9,815 = 1.06 and equity turnover = 10,377/2,107
4.93.
NEW QUESTION: 2
Which of the following phases in the fundamental test process is considered to deliver a document which can be used as a major input for test process improvement? 1 credit
A. Test implementation & execution
B. Test project closure
C. Test planning and control
D. Evaluating exit criteria and reporting
Answer: B
NEW QUESTION: 3
A. Option A
B. Option B
C. Option D
D. Option C
Answer: A