How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask F. Naz Your Own Question
F. Naz
F. Naz, Chartered Accountant
Category: Homework
Satisfied Customers: 5326
Experience:  Experience with chartered accountancy
20040807
Type Your Homework Question Here...
F. Naz is online now
A new question is answered every 9 seconds

1.Company J and Company K each recently reported the same earnings

Resolved Question:

1.Company J and Company K each recently reported the same earnings per share (EPS). Company J’s stock, however, trades at a higher price. Which of the following statements is most correct?

a. Company J must have a higher P/E ratio.
b. Company J must have a higher market to book ratio.
c. Company J must be riskier.
d. Company J must have fewer growth opportunities.
e. All of the statements above are correct.

2.Cleveland Corporation has 100,000 shares of common stock outstanding. The company’s net income is $750,000 and its P/E is 8. What is the company’s stock price?

a. $20.00
b. $30.00
c. $40.00
d. $50.00
e. $60.00

3. The percentage of sales method is based on which of the following assumptions?

a. All balance sheet accounts are tied directly to sales.
b. Most balance sheet accounts are tied directly to sales.
c. The current level of total assets is optimal for the current sales level.
d. Answers a and c above.
e. Answers b and c above.

4.You have the following data for XX Company during the year 200N:
Cash $26,000
Marketable security $60,000
Fixed assets $380,000
Sales $1,000,000
Net income $45,000
Quick ratio 3 times
Current ratio 4 times
DSO 50 days
ROE 10%

Find
Account receivable


1. Between $135,000 and $138,000
2. Between $140,000 and $142,000
3. Between $ 150,000 and $160,000
4. Between $160,000 and $160,500

5.You have the following data for XX Company during the year 200N:
Cash $26,000
Marketable security $60,000
Fixed assets $380,000
Sales $1,000,000
Net income $45,000
Quick ratio 3 times
Current ratio 4 times
DSO 50 days
ROE 10%

Find
Current liabilities



1. Between $74,000 and $78,000
2. Between $80,000 and $82,000
3. Between $ 90,000 and $92,000
4. Between $100,000 and $100,500

6.You have the following data for XX Company during the year 200N:
Cash $26,000
Marketable security $60,000
Fixed assets $380,000
Sales $1,000,000
Net income $45,000
Quick ratio 3 times
Current ratio 4 times
DSO 50 days
ROE 10%

Find
Current assets




1. Between $274,000 and $278,000
2. Between $280,000 and $282,000
3. Between $290,000 and $292,000
4. Between $290,000 and $100,500


7.You have the following data for XX Company during the year 200N:
Cash $26,000
Marketable security $60,000
Fixed assets $380,000
Sales $1,000,000
Net income $45,000
Quick ratio 3 times
Current ratio 4 times
DSO 50 days
ROE 10%

Find
Total assets




1. Between $674,000 and $678,000
2. Between $680,000 and $682,000
3. Between $690,000 and $692,000
4. Between $698,000 and $600,500


8.You have the following data for XX Company during the year 200N:
Cash $26,000
Marketable security $60,000
Fixed assets $380,000
Sales $1,000,000
Net income $45,000
Quick ratio 3 times
Current ratio 4 times
DSO 50 days
ROE 10%

Find
Return on assets (ROA)




1. 7%
2. 8%
3. 9%
4. 10%


9.You have the following data for XX Company during the year 200N:
Cash $26,000
Marketable security $60,000
Fixed assets $380,000
Sales $1,000,000
Net income $45,000
Quick ratio 3 times
Current ratio 4 times
DSO 50 days
ROE 10%

Find
Common equity





1. Between $444,000 and $448,000
2. Between $480,000 and $482,000
3. Between $590,000 and $592,000
4. Between $608,000 and $610,500


10.You have the following data for XX Company during the year 200N:
Cash $26,000
Marketable security $60,000
Fixed assets $380,000
Sales $1,000,000
Net income $45,000
Quick ratio 3 times
Current ratio 4 times
DSO 50 days
ROE 10%

Find
Long term debt



1. Between $140,000 and $141,000
2. Between $145,000 and $148,000
3. Between $ 150,000 and $160,000
4. Between $160,000 and $160,500
Submitted: 7 years ago.
Category: Homework
Expert:  F. Naz replied 7 years ago.
THIS ANSWER IS LOCKED!

You need to spend $3 to view this post. Add Funds to your account and buy credits.
F. Naz and 5 other Homework Specialists are ready to help you