financial statement analysis coursera week 3 quiz answers
Income Statement Analysis Practice Quiz
1. John Jacob's company recorded $60,000 in sales revenue and a cost of goods sold of $45,000 on their income statement this month. What is their percentage Gross Profit Margin? (Enter the answer as a whole number and without the % sign)
25
2. Sally's Seashells company Income Statement shows that they have a Sales Revenue of $60,000 and Operating Earnings of $11,000. What is their percentage Operating Profit Margin? (Enter the answer as a whole number and without the % sign)
18
3. Harry's Wizarding Wands company recorded a net profit of $8,500 in addition to their Sales Revenue of $60,000 on their recent income statement. What is their Net Profit Margin? (Enter the answer as a whole number and without the % sign)
14
Balance Sheet Practice Quiz
4. What does the debt to equity ratio evaluate?
- What proportion of equity a company is using to finance its profits
- What proportion of debt or equity a company is using to finance its assets
- A company’s debt as a percentage of total liabilities and owner’s equity amount
5. If a company has $30,000 debt and $60,000 equity, what is its debt to equity ratio?
- 0.2
- 5.0
- 0.5
- 2.0
6. Which of the following statements is incorrect?
- The higher the debt-to-equity ratio, the more profit the company has recorded
- A high debt-to-equity ratio means the company has a lot of debt in relation to the equity
- The higher the debt-to-equity ratio, the more debt the company has on its balance sheet
- The debt-to-equity ratio analyzes the relationship between total liabilities and total equity
7. True or False: Generally, a high AP ratio indicates that you satisfy your accounts payable obligations quickly.
- True
- False
Cash Flow Practice Quiz
8. DigiWidgit recorded operating cash flows totaling $152,000 and the total debt payable for the year was $77,000 What is their Cash Flow Coverage Ratio? (Enter your answer to the one-hundredth position, x.xx)
1.97
Shuffle Q/A 1
9. Vegg Delivery recorded current liabilities of $44,000 at the year’s start, current liabilities of $67,000 at year’s end, and Cash Flow from Operating Activities of $120,000. What is their Current Liability Coverage Ratio? (enter your answer to the one-hundredth position, x.xx)
2.16
10. Superior Suits recorded a cash flow from operations of $48,750 and net sales of $87,000. What is their Operating Cash Flow Margin ratio? (enter your answer to the one-hundredth position, x.xx)
0.56