Measurement of a company's liquidity includes the calculation of all of the following EXCEPT:

• A.quick ratio.
• B.cash turnover.
• C.return on equity.
• D.current ratio.

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Which of the following occurs when the U.S. dollar strengthens?

• A.Foreign exports become more competitive.
• B.U.S. exports become more competitive.
• C.Foreigners will purchase more U.S. goods.
• D.Foreign exports become less competitive.

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Exhibit:

What is the price to earnings ratio for Company ABC?

• A.3.88
• B.7.50
• C.8.33
• D.10.00

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The Cash Manager of XYZ Corporation is trying to determine today's closing cash position in order to make an investment or borrowing decision. The Cash Manager anticipates wiring $55,000 in tax payments and $63,000 in supplier payments today. Additionally, the Cash Manager is aware that a $15,000 wire was received today into the company's concentration account from a customer and that XYZ Corp. will have to fund a bond interest payment of $200,000 in three days.

Using this information, as well as the data in the table, what is the closing cash position for XYZ Corporation?

• A.$(25,000)
• B.$(40,000)
• C.$(225,000)
• D.$(52,000)

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Company RST is a seasonal retailer who has just completed its holiday season and is temporarily flush with cash. The treasurer has identified approximately $15 million of excess balances and is trying to determine what to do with the surplus cash. Cash forecasts show that the funds will be needed in approximately 30 days to replenish inventory. Which of the following plans should the treasurer implement immediately?

• A.Leave the funds in RST's bank account earning an ECR of 1%.
• B.Purchase low-risk, short-term investments yielding 2%.
• C.Prepay a $15 million, 5% loan maturing in 1 year.
• D.Buy a long-term, highly rated investment paying 2.10%.

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