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Mobile's inv turnover is a

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1. Mobile's inv turnover is
   a. 7.46
   b. 11.83
   c. 6.16
   d. 5.62
2. The best indicator for assessing a firm's long term solvency risk is its ability to generate what over a period of years?
   a. sales
   b. earnings
   c. positive cash flows
   d. Income from continuing operations
3. Which of the following ratios is not a measure of long term solvency risk?
   a. debt/ equity
   b. interest coverage
   c. operating cash flows to current liabilities ratio
   d. Liabilities to assets
4. Which of the following states of financial distress would be considered the most troubling for an investor or creditor?
   a. failing to make a required interest payment on time
   b. paying an accounts payable after the billing date
   c. restructuring debt
   d. defaulting on a principal payment
5. Doran corp has a current ratio of 6. Under which of the following scenarios might this indicate a problem?
   a. inventories are increasing due to the into of a new product
   b. the company is holding cash in expectation of making a large investment in equipment
   c. receivables are increasing due to increasing sales
   d. inventories are increasing and the industry in which Doran operates is experiencing a recession
6. Which of the following can companies use as collateral for a loan?
7. What is the order of increasing gravity when assessing credit risk?
8. Which of the following properly links the factors affecting a firms ability to generate cash with its need to use cash in operations?
9. Which of the following properly links the factors affecting a firms ability to generate cash with its need to use cash in investing?
10. Which of the following properly links the factors affecting a firms ability to generate cash with its need to use cash in financing?
11. Hammer corp wrote off $185k of obsolete inventory. What effect did this write off have on the company's current and quick ratios?