106.Return on equity computations are used in evaluating:
A. Liquidity.
B. Profitability.
C. Gross profit.
D. Whether a ratio is improving or deteriorating over time.
107.The financial ratio intended to measure the effectiveness with which management has utilized the resources of the business, regardless of how these resources are financed, is:
A. Gross profit rate.
B. Current ratio.
C. Return on assets.
D. Return on equity.
108.The return on assets ratio usually is computed as:
A. Net sales divided by average total assets.
B. Gross profit divided by average total assets.
C. Operating income divided by average total assets.
D. Net income divided by average total assets.
109.The return on equity ratio usually is computed as:
A. Net income divided by average total assets.
B. Net income divided by average total stockholders' equity.
C. Gross profit divided by average total stockholders' equity.
D. Net income less preferred dividends, divided by average common stockholders' equity.
110.Amalgamated Corporation's net income was $2,400,000 in 2014 and $800,000 in 2015. What percentage increase in net income must Amalgamated achieve in 2016 to offset the decline in profits in 2015?
A. 75%.
B. 300%.
C. 33.33%.
D. 800%.
111.Refer to the information above. Claret Corporation's return on assets for 2015 rounded to the nearest tenth of a percent is:
A. 10.0%.
B. 4.1%.
C. 5.9%.
D. 16.9%.
112.Refer to the information above. Claret Corporation's return on common stockholders' equity for 2015, rounded to the nearest tenth of a percent, is:
A. 5.9%.
B. 6.05%.
C. 14.4%.
D. 9.4%.
113.Refer to the information above. Claret Corporation's accounts receivable turnover for 2015 is:
A. 4.6 times.
B. 2.9 times.
C. 5.4 times.
D. 68 days.
114.Refer to the information above. Claret Corporation's inventory turnover for 2015 is:
A. 6.6 times.
B. 3.9 times.
C. 4.2 times.
D. 94 days.
115.Refer to the information above. Claret Corporation's gross profit rate for 2015 is:
A. 60.1%.
B. 39.9%.
C. 33%.
D. 68%.