51) Refer to the Acme annual report above. Calculate the debt-to-equity ratio for
2012.
A) 8.00
B) 3.00
C) 0.52
D) 0.20
52) Refer to the Acme annual report above. Calculate the return on equity for
2010.
A) 57.1%
B) 41.4%
C) 300%
D) The answer cannot be determined from the information given.
53) Refer to the Acme annual report above. Calculate return on equity for
2011.
A) 43.2%
B) 55.2%
C) 32.7%
D) The answer cannot be determined from the information given.
54) Refer to the Acme annual report above. Calculate return on equity for
2012.
A) 39.3%
B) 49.0%
C) 32.7%
D) The answer cannot be determined from the information given.
The following selected information is from Acme's annual report for the years ended December 31:
2012 2011 2010
Sales $ 44,000$ 29,300$ 23,200
Cost of goods sold24,00015,00012,000
Operating expenses7,0006,0005,000
Interest expense 1,000 300 200
Net income$ 12,000$ 8,000$ 6,000
Accounts receivable5,0003,0002,000
Inventory9,0005,0003,000
Accounts payable6,0004,5003,500
55) Refer to the Acme annual report above. Calculate the inventory turnover ratio for
2010.
A) 4.0 times
B) 0.25 times
C) 7.7 times
D) The answer cannot be determined from the information given.
56) Refer to the Acme annual report above. Calculate the inventory turnover ratio for
2011.
A) 3.75 times
B) 6.0 times
C) 7.3 times
D) The answer cannot be determined from the information given.
57) Refer to the Acme annual report above. Calculate the inventory turnover ratio for
2012.
A) 4.9 times
B) 2.7 times
C) 3.4 times
D) The answer cannot be determined from the information given.
58) Refer to the Acme annual report above. What business event could explain the change in the inventory turnover ratio from 2011 to 2012?
A) Acme had a lot of obsolete inventory at the beginning of 2011 that was difficult to sell.
B) Acme expects to have much higher sales in 2013, and built up its inventory at the end of 2012 to get ready for these higher sales.
C) Foreign competition made it much more difficult to sell merchandise in 2011.
D) Acme lowered its prices in 2012 and was able to sell goods much more quickly.
59) Refer to the Acme annual report above. Calculate the accounts receivable turnover ratio for
2010.
A) 4.9 times
B) 2.7 times
C) 3.4 times
D) The answer cannot be determined from the information given.
60) Refer to the Acme annual report above. Calculate the accounts receivable turnover ratio for
2011.
A) 7.3 times
B) 9.8 times
C) 11.7 times
D) The answer cannot be determined from the information given.