2.When preparing common-size statements, items on the Balance Sheet are generally stated as a percentage of __________ and items on the Income Statement are generally stated as a percentage of __________.

total sharehoder equity; net sales

total assets; net sales

total shareholder equity; net income

total asstes; net income

3.XYB Company has a book value of $25 per share, net income of $3.3 million, annual preferred dividends of $300,000, and 1 million common stock shares outstanding. The company's common stock has a current market price of $45. What is the price to book value ratio?

0.56

1.8

0.12

0.067

4.

Makay Corporation has decided to include certain financial ratios in its year-end annual report to shareholders. Selected information relating to its most recent fiscal year is provided below. Cash $10,000 20,000 24,000 Accounts Receivable (end of year) Accounts Receivable (beginning of year) Inventory (end of year) Inventory (beginning of year) Notes Payable (due in 90 days) Bonds Payable (due in 10 years) Net Credit Sales for the year 30,000 26,000 25,000 35,000 220,000 Cost of Goods Sold 140,000 Makay's average inventory turnover for the year was: O 4.7 times O 5.4 times 0 7.9 times O 5 times A financial analyst has obtained the following data from Kryton Industries' financial statements. Cash $200,000 Accounts Payable $250,000 Marketable Securities 100,000 Income Taxes 50,000 Accounts Receivable 300,000 Accrues Liabilities 100,000 Inventories 480,000 Current portion of long term Debt 200,000 Prepaid Expenses 120,000 Total Current Assets $1,200,000 Total Current Liabilities $600,000 In order to determine Kryton's ability to pay current obligation, the financial analyst would calculate Kryton's cash ratio as: O 0.80 O 1.20 01.00 O 0.50