Course 2 Practice Test Flashcards
The two key documents used in financial statement analysis are:
Balance sheet and income statement
What is the main reason why the MAP underwriter needs to know if the borrower has any contingent liabilities?
Contingent liabilities may include personal guarantees on other projects that could impact a borrower’s capability to fund shortfalls on the subject property.
When evaluating the REO schedule, how should current physical occupancy be considered?
The most current physical occupancy at a specific point in time.
An abnormally high debt service coverage ratio is indicative of which of the following on an REO schedule?
The loan is either an interest only loan or a floating rate loan.
Using the information provided below, determine the firm’s working capital:.
Assets
Cash $42,000
Listed stocks and bonds $28,000
Restricted cash $40,000
Notes receivable within one year $14,000
Total $124,000
Liabilities
Accounts payable $23,000
Notes payable within one year $37,000
Notes payable within two years $16,000
Total $76,000
Calculate working capital. Use the format $XX,XXX for your response.
$24,000
Using the information provided below, determine the current ratio:.
Assets
Cash $42,000
Listed stocks and bonds $28,000
Restricted cash $40,000
Notes receivable within one year $14,000
Total $124,000
Liabilities
Accounts payable $23,000
Notes payable within one year $37,000
Notes payable within two years $16,000
Total $76,000
Calculate the current ratio. Use format X.X for your response.
1.4
Using the information provided below, determine the current ratio.
Assets
Unrestricted cash $23,000
Restricted cash $10,000
Listed stocks $46,000
Notes receivable in 3 years $75,000
Total $154,000
Liabilities
Accounts payable $40,000
Notes payable within 1 year $62,000
Notes payable within 2 years $37,000
Total $139,000
Calculate the current ratio. Use format .XXX for your response.
.676
