Nineteen Measures of Solvency and Profitability
The comparative financial statements of Chattah Inc. are as follows. The market price of Chattah Inc. common stock was $25 on December 31, 2012.
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Instructions:
Determine the following measures for 2012. Round answers to one decimal place, and dollars amounts to the nearest whole cent. Assume 365 days a year.
1.Working capital:$
2.Current ratio:
3.Quick ratio:
4.Accounts receivable turnover:
5.Number of days’ sales in receivables:
6.Inventory turnover:
7.Number of days’ sales in inventory:
8.Ratio of fixed assets to long-term liabilities:
9.Ratio of liabilities to stockholders’ equity:
10.Number of times interest charges earned:
11.Number of times preferred dividends earned:
12.Ratio of net sales to assets:
13.Rate earned on total assets:%
14.Rate earned on stockholders’ equity:%
15.Rate earned on common stockholders’ equity:%
16.Earnings per share on common stock:$
17.Price-earnings ratio:
18.Dividends per share of common stock:$
19.Dividend yield:%
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Statement I: When equilibrium GDP and full employment GDP are equal, there is no inflationary gap and no deflationary gap.Statement II: Equilibrium GDP is an ideal goal that can never be attained. A) Statement I is true and statement II is false. B) Statement II is true and statement I is false. C) Both statements are true. D) Both statements are false. 31. When government expenditures in a given year are less than tax receipts, there exists A) a budget deficit. B) public revenue. C) full-employment taxation. D) a budget surplus .32. As price rises, the quantity ______________ rises. A) demanded B) supplied C) demanded and supplied 33. If the MPC were .75, what change in government spending (in billions of dollars) would be required to cause the equilibrium level of GDP to fall by 100? A) A decrease of 25. B) A decrease of 50. C) A decrease of 75. D) A decrease of 100. E) A decrease of 125. (I will send the image) 34. 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