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1-(10 marks)

Determine the value of cash given the following information: cash ratio = 2; cash equivalents = $600; current liabilities = $800.

2-(10 marks)

Karan Corporation 2018 Statement of comprehensive income ($ in millions)
Sales	$10,850
Costs of goods sold	$8,410
Depreciation	$190
EBIT	$2,250
Interest	$165
EBT	$2,085
Taxes	$710
Net income	$1,375
Dividends paid	$300
Addition to retained earnings	$1,075

Karan Corporation Statement of financial position Years ended 20172017 and 2018 ($ in millions)
	20172017	2018		20172017	2018
Cash	$980	$960	Accounts payable	$950	$730
Accounts rec.	$950	$880	Notes payable	$40	$150
Inventory	$2,120	$1,750	Total	$990	$880
Total	$5,050	$3,590	Long-term debt	$2,225	$100
Fixed assets	$1,700	$2,540	Common stock	$2,030	$3,570
			Retained earnings	$505	$1,580
Total assets	$5,750	$6,130	Total liabilities and Owners equity	$5,750	$6,130

How many additional assets can Karan Inc. acquire if the company issues an additional $1,000 in common stock ($ in millions)?

3-(10 marks)

A New Delhi firm has net working capital of $2,580, net fixed assets of $13,120, sales of $22,580, and current liabilities of $1,610. How many dollars' worth of sales are generated from every $1 in total assets?

4-(10 marks)

Given the following information, compute sales value. Total asset turnover 0.80; total liabilities $5,000; total equity $5,000.

5- (20 marks)

Amandeep Corporation's total current assets are valued at $35,000 and are comprised of cash, accounts receivable and inventory. Determine the value of the cash account given the following information: sales = $140,000; cost of goods sold = $120,000; accounts receivable turnover = 17.50 times; inventory turnover = 8 times.

6- (20 marks)

Compute the value of short-term debt given the following information: total debt = $320,000; debt/equity ratio = 0.80; long-term debt ratio = 0.3750.

7-(20 marks)

A reduction in interest expense, all else constant, will cause which of the following:

(Please select one or more)

Decrease in the times interest earned ratio. Increase in the cash coverage ratio. Decrease in the long-term debt ratio. Decrease in the return on equity. Increase in the price earnings ratio.

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