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Use the following data to answer questions 11-13.

Current assets $150,000

Total assets 500,000

Current liabilities 125,000

Total liabilities 200,000

Net sales 550,000

Net credit sales. 300,000

Cost of goods sold 200,000

Gross profit 350,000

Net income. 100,000

Average gross receivables 50,000

Average inventory 40.000

11. What is the receivables turnover?

a. 1 times

b. 6 times

c. 11 times

d. 17 times

e. none of the above

12. What is the debt to total assets?

a. 25%

b. 40%

c. 83%

d. 133%

e. none of the above

13. What is the profit margin?

a. 18%

b. 36%

c. 64%

d. 82%

e. none of the above

14. Which of the following is a true statement?

a. Under both ASPE and IFRS, basic earnings per share must be reported on the income.

b. Under ASPE, basic earnings per share must be reported on the income statement.

c. Under IFRS, basic earnings per share must be reported in the income statement.

d. Neither ASPE nor IFRS require that the basic earnings per share be reported on the income statement.

e. Only when discontinued operations are presented must basic earnings per share be reported on the income statement.

15. Which of the following is a factor that would limit the usefulness of your financial analysis?

a. alternative accounting policies

b. comprehensive income

c. nonrecurring items

d. diversification

e. all of the above

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