Listed below are the account balances for UBUS, Inc. The income statement balances are for the year, 20X4. The balance sheet balances are shown as of 1/1/20X4 and 12/31/20X4. They are listed in alphabetical order, NOT in the order they appear on the statements themselves. The applicable tax rate is 40%. You are to use this information to answer the following SEVEN questions (6-a through 6-g).
Income Statement for 20X4
a)What was the Quick Ratio for UBUS Inc. as of 12/31/20X4?
a. Less than 1.0
b. From 1.0 - 1.5
c. From 1.51 - 1.9
d. From 1.91 - 2.3
e. More than 2.3
b)What kind of impact will the change in the Accounts Receivable balance have on Operating Cash Flows portion of the Statement of Cash Flows in 20X4?
a.Decrease operating cash flows by $10
b.Decrease operating cash flows by $5
c.Increase operating cash flows by $10
d Increase operating cash flows by $5
e. No impact
c)Where will the change in Fixed Assets (gross)appear on the Statement of Cash Flows?
a. The Operating Section
b. The Investing Section
c. The Financing Section
d. It won't appear on the Statement of Cash Flows
e. Can't tell from the information given
d)What is UBUS Inc.'s Times Interest Earned (TIE)ratio for 20X4?
a. Less than 2.0
b. From 2.0 - 3.0
c. From 3.1 - 4.0
d. From 4.1 - 5.0
e. More than 5.0
e)What is UBUS Inc.'s Return on Assets (ROA)for 20X4?
a. Less than 12.0%
b. From 12.0% - 12.5%
c. From 12.6% - 13.0%
d. From 13.1% - 13.5%
e. More than 13.5%
f)What is UBUS Inc.'s Return on Sales (profit margin)for 20X4?
a. Less than 9.0%
b. From 9.0% - 11.0%
c. From 11.1% - 13.0%
d. from 13.1% - 15.0%
e. More than 15%
g)What is UBUS Inc.'s Debt Ratio as of 12/31/20X4?
a. Less than 43.0%
b. From 43.0% - 46.0%
c. From 46.1% - 49.0%
d. From 49.1 - 52.0%
e. More than 52.0%
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