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FINA 3311 TEST 1 2026
ACTUAL QUESTIONS WITH
VERIFIED ANSWERS.
The current ratio of a firm would be increased by which of the
following?
A.
Equipment is purchased, financed by a long−term debt issue.
B.
Inventories are sold for cash.
C.
Land held for investment is sold for cash.
D.
Inventories are sold on a credit basis. - correct answer-Land
held for investment is sold for cash.
the current ratio is - correct answer-current assets/current
liabilities
(Price
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book)
Chang, Inc.'s balance sheet shows astockholders' equity book
value(total commonequity) of
$757,100.
Thefirm's earnings per share is
$3.05,
resulting in aprice/earnings ratio of
12.53X.
There are
52,000
shares of common stock outstanding. What is theprice/book
ratio? What does this indicate about how shareholders
viewChang, Inc.? - correct answer-12.53x3.05=38.22
38.22x52000=1,987,258
1,987,258/757,100= *2.62 answer*
operating return on assets ratio - correct answer-operating
profit/total assets
times interest earned on assets ratio - correct answer-operating
profit/interest expense
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debt ratio - correct answer-total debts/total assets
inventory t/o ratio - correct answer-COGS/inventory
avg collection period ratio - correct answer-AR/(annual credit
sales/365)
total assets t/o ratio - correct answer-sales/total assets
fixed asset t/o ratio - correct answer-sales/fixed assets
operating profit margin ratio - correct answer-operating
profit/sales
return on equity ratio - correct answer-net income/common
equity
FINA 3311 TEST 1 2026
ACTUAL QUESTIONS WITH
VERIFIED ANSWERS.
The current ratio of a firm would be increased by which of the
following?
A.
Equipment is purchased, financed by a long−term debt issue.
B.
Inventories are sold for cash.
C.
Land held for investment is sold for cash.
D.
Inventories are sold on a credit basis. - correct answer-Land
held for investment is sold for cash.
the current ratio is - correct answer-current assets/current
liabilities
(Price
, Page | 2
book)
Chang, Inc.'s balance sheet shows astockholders' equity book
value(total commonequity) of
$757,100.
Thefirm's earnings per share is
$3.05,
resulting in aprice/earnings ratio of
12.53X.
There are
52,000
shares of common stock outstanding. What is theprice/book
ratio? What does this indicate about how shareholders
viewChang, Inc.? - correct answer-12.53x3.05=38.22
38.22x52000=1,987,258
1,987,258/757,100= *2.62 answer*
operating return on assets ratio - correct answer-operating
profit/total assets
times interest earned on assets ratio - correct answer-operating
profit/interest expense
, Page | 3
debt ratio - correct answer-total debts/total assets
inventory t/o ratio - correct answer-COGS/inventory
avg collection period ratio - correct answer-AR/(annual credit
sales/365)
total assets t/o ratio - correct answer-sales/total assets
fixed asset t/o ratio - correct answer-sales/fixed assets
operating profit margin ratio - correct answer-operating
profit/sales
return on equity ratio - correct answer-net income/common
equity
