Reference no: EM1317426

Objective questions on equity multiplier ratio and common size income statement

1. The equity multiplier ratio is measured as total

1. Equity divided by total assets.
2. Equity plus total debt.
3. Assets minus total equity, divided by total assets.
4. Assets plus total equity, divided by total debt.
5. Assets divided by total equity.

2.  A firm has sales of $1,200, net income of $200, net fixed assets of $500, and current assets of $300. The firm has $100 in inventory. What is the common-size statement value of inventory?

1. 8.3%
2. 12.5%
3. 20.0%
4. 33.3%
5. 50.0%