Exam 16: Financial Statement Analysis

The ________________ is calculated by dividing total liabilities by total stockholders' equity.

Carter Company has a return on total assets of 12 percent and a return on common stockholders' equity of 15 percent.What causes the difference in the two returns?

The _____________________ gives the number of days inventory is held before being sold.

Which one of the following would be considered a leverage ratio?

____________ are fractions or percentages computed by dividing one account or line-item amount by another.

Parr Hardware Store had net credit sales of $5,200,000 and cost of goods sold of $4,000,000 for the year.The Accounts Receivable balances at the beginning and end of the year were $600,000 and $700,000,respectively.The accounts receivables turnover was

How long it takes a company to turn its receivables into cash is known as the ________________.

The current ratio is a measure of the ability of a company to pay its short-term liabilities out of short-term assets.

Fastlane Company has 50,000 shares of common stock and 20,000 shares of preferred stock outstanding.There was no change in the number of common or preferred shares outstanding during the year.Preferred stockholders received dividends this year totaling $120,000.Common stockholders received dividends totaling $200,000.If the dividend payout ratio for the year was 80 percent,then the net income was

Vertical analysis is a technique that expresses each item in a financial statement

Figure 16-4. Condensed financial statements for Black Company appear below: There were 72,000 shares of common stock outstanding throughout the 2012.Dividends on common stock amounted to $320,400 and dividends on preferred stock amounted to $45,000.The market value of a share of common stock was $54 at the end of 2012.The income tax rate is 30%. Refer to Figure 16-4. Required: Calculate the following leverage ratios for 2012.

Last year Fuller Company had a net income of $410,000,income tax expense of $50,000,and interest expense of $34,000.The company's times-interest-earned ratio was closest to

Kringle Company,a retailer,had cost of goods sold of $1,400,000 last year.The beginning inventory balance was $125,000 and the ending inventory balance was $142,000.The company's inventory turnover ratio was closest to

Assume the following sales data for a company: If 2006 is the base year,what is the percentage increase in sales from 2006 to 2010?

In vertical analysis of the income statement,cost of goods sold is represented by 100 percent.

Horizontal analysis is analysis

Last year Neil Company had a net income of $170,000,income tax expense of $37,000,and interest expense of $24,000.The company's times-interest-earned ratio was closest to

Clover Company's net income last year was $80,000.The company paid preferred dividends of $12,000 and its average common stockholders' equity was $340,000.The company's return on common stockholders' equity for the year was closest to

Swanson Company had $250,000 of current assets and $90,000 of current liabilities before borrowing $60,000 from the bank with a 3-month note payable.What effect did the borrowing transaction have on Swanson Company's current ratio?

____________________ represents the percentage of each sales dollar that is left over from net income after all expenses have been subtracted.