FM 8B: Module 3 Quiz Problem Answers

#1

Solution
 Total assets = Current assets + Long-term assets = 650,000 + 1,080,000 = 1,730,000
 Total liabilities = Current liabilities + Long-term liabilities = 684,000 + 803,000 = 1,487,000
 Total equity = Total assets – Total liabilities = 1,730,000 – 1,487,000 = 243,000
#2

Solutions:
 Total equity = Total assets – Total liabilities = 3,800,000,000 – 2,200,000,000 = 1,600,000,000
 ROE = Net income / Total equity = 850,000,000 / 1,600,000,000 = 53.13%
#3

Solution:
 Debt ratio = Total liabilities / Total assets = 2,200,000,000 / 3,800,000,000 = 57.89%
#4

Solution:
 Current ratio = Current assets / Current liabilities = 680,000 / 490,000 = 1.39

Estimated Time:
0 h 16 m 32 s