1. Refer to the information for Ramos Company. In a percentage change income statement over the period of 2009 to 2011, what is the change in sales?

14.7%

2. Refer to the information for Ramos Company. In a common size income statement for 2011, the cost of goods sold are expressed as:

64.5%

3. Refer to the information for Ramos Company. In a common size income statement for 2011, the operating expenses are expressed as:

28.0%

4. Return on common equity can be disaggregated into three components, which of the three is not one of the components?

Debt to Equity ratio

5. Sustainable earnings represent

the level of earnings and the growth in the levels of earnings expected to persist in the future.

6. The computation of the additional shares to be issued on the exercise of stock options
   assumes that the firm would repurchase common shares on the open market using an
   amount equal to the sum of all the following except:

net incremental shares issued (any unamortized compensation expense on those options, any tax benefits that would be credited to additional paid-in capital, and any cash proceeds from such exercise SUM OF THESE)

7. The profit margin for ROA indicates the ability of a firm to generate earnings for a particular level of

sales

8. The statutory tax rate differs from a firm's average tax rate due to which of the following reasons

some expenses are included in book income but do not enter into taxable income.

9. The three elements of risk that help in understanding differences across firms and changes over time in ROAs are:

operating leverage, cyclicality of sales, product life cycles

10. Time-series analysis helps answer all of the following questions except:

What is the amount of assets or capital required to generate a particular level of earnings? ( How is management of the firm responding to external economic forces? Is the firm becoming more or less profitable over time? Is the firm becoming more or less risky?)