Multiple Choice Questions

Use the Hialeah Bell Corporation financial statements that follow to answer questions 1 through 6.

1. Hialeah Bells days sales in average receivables during 2010 was
a. 29 days.
b. 117 days.
c. 21 days.
d. 25 days.
2. Hialeah Bells inventory turnover during fiscal year 2010 was
a. 130 times.
b. 81 times.
c. 41 times.
d. very slow.
3. Hialeah Bells long-term debt bears interest at 11%. During the year ended December 31, 2010, Bells times-interest-earned ratio was
a. 137 times.
b. 144 times.
c. 147 times.
d. 150 times.
4. Hialeah Bells trend of return on sales is
a. Worrisome.
b. Declining.
c. Improving.
d. Stuck at 20.8%.
5. How many shares of common stock did Hialeah Bell have outstanding, on average, during 2010?
a. 2,947 million
b. 5,258 million
c. 5,244 million
d. 2,965 million
6. Book value per share of Hialeah Bells common stock outstanding at December 31, 2010, was
a. $5,649.
b. $1.84.
c. $1.96.
d.$2.08.

Hialeah Bell Corporation Consolidated Statements of Income In millions, except per share amounts) Year ended Decenber 31 42.788 $35,299 $30,968 34,000 29.111 26,01 8.7886,18 4.907 Cost of goods Gross profit Operating exOE Selling, general, and administrativ3,341 3,000 2,581 Research, developmest and 556 542 Total operaing expesse Operating income 3,915 3,556 3,625 4,873 2,6321,282 and odher income (ons x Income before income 5,043 2,844 1,204 3,943 $ 1,932 $ 732 S 133 0.94 0.42 1.100 Net income Eareings per common share Hialeah Bell Corporation Consolidated Statements of Financial Position (In millions) December 31 2010 Current assets Cash and cash equi Short-term investm Accounts receivable, ne Inventories S 4,301 4,138 3,402 2,401 1.213 8,674 932 5,323 144 $19,029 $15,073 1,638 10,598 1,517 6,613 Total current assets Property, plant, and equipment, net Liahilities and Stockholders Equity Current liabilities: Accounts payable $ 7,702 3.676 11,378 301 1,701 6,002 Accrued and other 9 Total current liabilit Long-term Other noncurrent lia Commitments and contingent liabilities (Note 7) 302 1167 Total liabilities 13.380 10,51 Stockholders' equity Preferred stock and capital in excess of $0,02 par valus shares issoed and ounstanding none.. Common stock and capital in excess of $0.05 par value; shares authorized: 6,000; shares issued: 3,240 and 2,989, respectively Treasury stock, at cost 175 and 124 shares, 7,801 7,004 respectively Retained Other comprehensive (6,333) 4,321 (104) (4,404) 2,054 (50) Total stockholders' equity Total liabilities and stockholders' equity-................- 5,649 $19,029$15,073