41) Refer to the Megabux annual report above. Calculate the profit margin ratio for
2010.
A) 6%
B) 54%
C) 16.7%
D) 1.8%
42) Refer to the Megabux annual report above. Calculate the profit margin ratio for
2011.
A) 5.0%
B) 4.5%
C) 22%
D) 11%
43) Refer to the Megabux annual report above. Calculate the profit margin ratio for
2012.
A) 2.0%
B) 1.7%
C) 60.0%
D) 51.7%
44) Refer to the Megabux annual report above. Which of the following describes the trend in the profit margin ratio for the three-year period?
A) The ratio is getting worse because expenses are growing faster than sales.
B) The ratio is getting worse because Megabux has increased its selling prices.
C) The increase in sales each year is more than enough to cover the increase in expenses.
D) There is no significant change in the ratio over the three years.
The following information is from Acme's annual report for the years ended Dec. 31:
2012 2011 2010
Cash 2,5002,0001,000
Accounts receivable5,0003,0002,000
Inventory9,0005,0003,000
Property, plant & equipment30,00016,00010,000
Accounts payable6,0004,5003,500
Long-term liabilities10,0003,0002,000
Common stock2,0002,0002,000
Retained earnings28,50016,5008,500
45) Refer to the Acme annual report above. This information is from Acme's ________.
A) income statement
B) balance sheet
C) statement of cash flows
D) statement of changes in shareholders' equity
46) Refer to the Acme annual report above. Calculate the current ratio for 2010.
A) 0.3
B) 0.9
C) 1.7
D) 2.9
47) Refer to the Acme annual report above. Calculate the current ratio for
2011.
A) 0.4
B) 1.1
C) 2.2
D) 3.5
48) Refer to the Acme annual report above. Calculate the current ratio for
2012.
A) 2.8
B) 1.0
C) 2.9
D) 1.3
49) Refer to the Acme annual report above. Calculate the debt-to-equity ratio for
2010.
A) 0.52
B) 2.75
C) 1.52
D) 8.00
50) Refer to the Acme annual report above. Calculate the debt-to-equity ratio for
2011.
A) 0.24
B) 0.41
C) 3.75
D) 2.25