The following financial data is available for the Kingston Corporation at the end of the fiscal year:

Cash: $45,000 | Accounts Receivable: $60,000 | Inventory: $90,000 | Prepaid Expenses: $5,000 | Accounts Payable: $50,000 | Accrued Liabilities: $15,000 | Short-term Notes Payable: $25,000

What is Kingston Corporation’s Quick (Acid-Test) Ratio?

A company reported Net Income of $450,000 and Interest Expense of $50,000 for the year. The corporate tax rate is 30%. What is the company’s Times Interest Earned (TIE) ratio?

Selected data for the fiscal year shows:

Sales (all credit): $1,200,000 | Beginning AR: $100,000 | Ending AR: $140,000

What is the average collection period (Days Sales Outstanding) using a 365-day year?

A company has a Total Asset Turnover of 2.0, a Net Profit Margin of 8%, and an Equity Multiplier of 1.5. According to the DuPont Analysis, what is the Return on Equity (ROE)?

A firm has a Debt-to-Equity ratio of 0.60. Total Assets are $800,000. What is the total amount of the firm’s liabilities?

A retailer reports Sales of $500,000, Gross Profit of $200,000, and Operating Expenses of $120,000. What is the Operating Profit Margin?

When performing vertical common-size analysis on an Income Statement, all line items are typically expressed as a percentage of:

Which of the following would cause a company’s Inventory Turnover ratio to increase, assuming all other factors remain constant?

Comparing a company’s financial ratios to those of its leading competitor is an example of:

A company decides to capitalize a cost that was previously expensed. What is the immediate impact of this accounting change on the company’s Debt-to-Equity ratio?