FIN 515 Week 1 Quiz

FIN 515 Week 1 Quiz

1. Question: (TCO G) Which do you think provides a more valid measure of how a company is doing, comparison of current results with historical results or comparison of current results with the current results of another company?

2. Question: (TCO G) Barnes Corp’s total assets at the end of last year were $415,000,000 and its net income after taxes was $17,750,000. What was its return on total assets?

3. Question: (TCO G) As of December 31, 2015, Michael Corp’s current assets were $2,000,000. Its current liabilities were $2,000,000. Its sales for 2015 were $50,000,000. As of December 31, 2016, Michael Corp’s current assets were $3,000,000. Its current liabilities were $3,000,000. Its sales for 2016 were $65,000,000. Management has asked you to comment on these numbers.