Balance Sheet
Cole Eagan Enterprises
December 31, 2002

question 6

Multiple Choice

Balance Sheet
Cole Eagan Enterprises
December 31, 2002
$\begin{array}{llll}\text { Cash } & \$ 4,500 & \text { Accounts Payable } & \$ 10,000 \\\text { Accounts Receivable } && \text { Notes Payable } \\\text { Inventories } && \text { Accruals }&1,000 \\\text { Total Current Assets } && \text { Total Current Liab. } \\\text { Net Fixed Assets } && \text { Long-Term Debt } \\\text { Total Assets } && \text { Stockholders' Equity } \\&& \text { Total Liab. \& S.E. }\end{array}$

Information (2002 values)
1. Sales totaled $\$ 110,000$
2. The gross profit margin was 25 percent.
3. Inventory turnover was 3.0 .
4. There are 360 days in the year.
5. The average collection period was 65 days
6. The current ratio was 2.40 .
7. The total asset turnover was 1.13.
8. The debt ratio was 53.8 percent
-Inventories for CEE in 2002 were__________

• A) $27,500
• B) $36,667
• C) $32,448
• D) $ 9,167

Understand the fundamental concepts and significance of capital investment analysis in financial decision-making.

Identify and assess various complicating factors in capital investment decisions, such as leasing alternatives, price levels, and tax considerations.

Calculate and interpret the net present value (NPV) of an investment and utilize it to make investment decisions.

Utilize the internal rate of return (IRR) method for evaluating investment opportunities and compare it to the company's desired rate of return.

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Definitions:

Unexpected Wanted Event

A surprising occurrence that, despite being unforeseen, is welcomed or desired by those involved.

Normative-Stage Model

A theoretical model that suggests that human development proceeds through a series of predetermined, orderly stages.

Adult Personality

The combination of characteristics or qualities that form an individual's distinctive character in adulthood, shaped by developmental experiences.

Predictable Changes

These are alterations or developments that can be anticipated based on known patterns, historical data, or identifiable factors.