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Use the following data to answer questions 11-13.
Current assets $150,000
Total assets 500,000
Current liabilities 125,000
Total liabilities 200,000
Net sales 550,000
Net credit sales. 300,000
Cost of goods sold 200,000
Gross profit 350,000
Net income. 100,000
Average gross receivables 50,000
Average inventory 40.000
11. What is the receivables turnover?
a. 1 times
b. 6 times
c. 11 times
d. 17 times
e. none of the above
12. What is the debt to total assets?
a. 25%
b. 40%
c. 83%
d. 133%
e. none of the above
13. What is the profit margin?
a. 18%
b. 36%
c. 64%
d. 82%
e. none of the above
14. Which of the following is a true statement?
a. Under both ASPE and IFRS, basic earnings per share must be reported on the income.
b. Under ASPE, basic earnings per share must be reported on the income statement.
c. Under IFRS, basic earnings per share must be reported in the income statement.
d. Neither ASPE nor IFRS require that the basic earnings per share be reported on the income statement.
e. Only when discontinued operations are presented must basic earnings per share be reported on the income statement.
15. Which of the following is a factor that would limit the usefulness of your financial analysis?
a. alternative accounting policies
b. comprehensive income
c. nonrecurring items
d. diversification
e. all of the above
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