# Level of Measurements

Ch 1 Exercise 18

A.
1) Quantitative
2) Qualitative
3) Quantitative
4) Quantitative
5) Qualitative
6) Qualitative
7) Qualitative
8) Qualitative
9) Quantitative
10) Qualitative
11) Quantitative
12) Qualitative

B.
1) Ratio
2) Nominal
3) Nominal
4) Ratio
5) Nominal
6) Nominal
7) Ratio
8) Nominal
9) Ratio
10) Nominal
11) Ratio
12) Nominal

Ch 3 Problem 3-41

(y2-y1)/(x2-x1)
(1,150,000-950,000)/(45,000-35,000)
M=200,000/10,000 =20

Ch 3 Case 3.18

A) Working Capital     Current Assets-Current Liabilities

1999   2,696,805-1,809,710= 887,095

1998 2,228,186-1,429,674=798,512

Current Ratio Current Assets/Current Liability

1999 2,696,805/1,809,710= 1.5

1998 2,228,186/1,429,674= 1.6

Acid Test Ratio Cash + Accounts Receivable/Current Liabilities

1999 1,982,710/1,809,719=1.1

1998 1,887,318/1,429,674 = 1.3

B) ROE Net Income/Average Owner Equity
1999 427,944/2017118+1344375/2 = 1,680,746.5
427,944/1,689,746.5= 0.25

1998 346,399/1,344,375+930,044/2=1,137,209.5
346,399/1,137,209.5 =0.30

C) ROI Net Income/Average Total Assets
1999 427,944/3,954,688 + 2,890,380/2
427,944/3,422,534=0.13
1998 346,399/2,890,380+2,039,271/2
346,399/2,464,825.5 = o.14

ROI     Margin   Net Income/ Sales         X         Turnover     Sales/Average Total Assets

1999   427,944/8,645,564 = 0.049                 X                     8,645,564/3,422,534 = 2.53
0.049 x 2.53 = 0.019

1998         346,399/7,467,925 =0.046             X                     7,467,925/2,454,825.5 = 3.04
0.046 x 3.04 = 0.015

D) 1998 had a better debt paying ability than 1998. Working Capital increased between 1998 and 1999 which mean stockholders did not take a high dividend payout
E) Stockholders might have wanted to reinvest their dividends into other firms.