1.Horizontal analysis is also called common-size analysis

Question 1

1. Horizontal analysis is also called common-size analysis.

True

False

0.2 points

Question 2

1. Ratio analysis is often required in order to determine whether a loan covenant has been violated.

True

False

0.2 points

Question 3

1. When a ratio includes the term "turnover" the calculation usually involves a balance sheet item divided by sales. For example, Asset Turnover = Average Assets/Sales

True

False

0.2 points

Question 4

1. RevPAR = ADR × Occupancy Rate

True

False

0.2 points

Question 5

1. The Sarbanes-Oxley Act has both improved corporate governance and reduced administrative costs at public companies.

True

False

0.2 points

Question 6

1. On the line next to each description in Column A, place the letter of the financial statement manipulation in Column B which it describes.

0.2 points

Question 7

1. On the line next to each reason for using a financial statement in Column A, place the letter of the financial statement end-user in Column B which it describes.

0.2 points

Question 8

1. On the line next to each formula in Column A, place the letter of the financial ratio in Column B which it describes.

0.2 points

Question 9

1. Consider this balance sheet data:

Cash: $75
Accounts Receivable: $100
Inventory: $125
Equipment: $100
Accounts Payable: $125
Payroll: $25
Long-Term Debt: $100

Select the appropriate items from the above list and Compute Current Ratio to the nearest tenth---that is, 2.7, 1.2, 0.7, etc.

0.2 points

Question 10

1. Consider this data:

Sales: $552,500
Net Income: $43,720
Total Assets: $1,278,000
Shareholder's Equity: $777,200

Select the appropriate items from the list above and Compute Return on Equity. Express your answer as a whole number for the percentage---that is, if the answer is 62.3% enter 62, or if 46.9% enter 47.

0.2 points

Question 11

1. Total Rooms: 250
   Rooms Sold Last Year: 71,100
   Room Revenue: $6,387,500
   Occupancy Cost: $992,050

Select the appropriate data from the above list and Compute Occupancy Percentage. Express your answer as a whole number for the percentage---that is, if the answer is 62.3% enter 62, or if 46.9%, enter 47.

0.2 points

Question 12

1. Total Rooms: 250
   Rooms Sold Last Year: 71,100
   Room Revenue: $6,387,500
   Occupancy Cost: $992,050

Select the appropriate data from the above list and Compute ADR. Express your answer to the closest penny, but do not enter a dollar sign---that is, if the answer is $13.37, enter 13.37.

0.2 points

Question 13

1. Total Rooms: 250
   Rooms Sold Last Year: 71,100
   Room Revenue: $6,387,500
   Occupancy Cost: $992,050

Select the appropriate data from the above list and Compute RevPAR. Express your answer to the closest penny, but do not enter a dollar sign---that is, if the answer is $13.37, enter 13.37.

0.2 points

Question 14

1. Total Rooms: 250
   Rooms Sold Last Year: 71,100
   Room Revenue: $6,387,500
   Occupancy Cost: $992,050

Select the appropriate data from the above list and Compute CPOR. Express your answer to the closest penny, but do not enter a dollar sign---that is, if the answer is $13.37, enter 13.37.

0.2 points

Question 15

1. A 265 room hotel has fixed costs of $14,000,000. Average room rate is $285. Variable cost per occupied room is $65.'

Compute the break-even point in total rooms sold per year. Express your answer as a whole number---that is, if the answer is 45,322.7 enter 45323.

0.2 points

Question 16

1. A 265 room hotel has fixed costs of $14,000,000. Average room rate is $285. Variable cost per occupied room is $65.

Compute the occupancy percentage to achieve a break-even. Express your answer as a whole number---that is, if the answer is 76.9%, enter 77.

0.2 points

Question 17

1. A 265 room hotel has fixed costs of $14,000,000. Average room rate is $285. Variable cost per occupied room is $65.

Compute the total rooms that must be sold per year to give the owners a pre-tax profit of $2,000,000. Express your answer as a whole number---that is, if the answer is 45,322.7 enter 45323.

0.2 points

Question 18

1. A 265 room hotel has fixed costs of $14,000,000. Average room rate is $285. Variable cost per occupied room is $65.

Compute the occupancy percentage to achieve a pre-tax profit of $2,000,000. Express your answer as a whole number---that is, if the answer is 76.9%, enter 77.

0.2 points

Question 19

1. Consider this data on sales and accounts receivable for these two years:

A/R (2009): $70,000
A/R (2008): $54,000
Sales (2009): $360,000
Sales (2008): $280,000.

Select the appropriate data from the above list and Compute the Average A/R turnover for 2009. Hint: You will need three of the above items to compute this. Express your answer to the nearest tenth---that is, if the answer is 14.28, enter 14.3

0.2 points

Question 20

1. Consider this data on sales and accounts receivable for these two years:

A/R (2009): $70,000
A/R (2008): $54,000
Sales (2009): $360,000
Sales (2008): $280,000.

Select the appropriate data from the above list and Compute the Average Collection Period for 2009 in days. Hint: You will need three of the above items to compute this. Express your answer as a whole number---that is, if the answer is 44.28, enter 44

0.2 points

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