Exam 16: Financial Statement Analysis

Siri Company has $20,000 in cash,$8,000 in marketable securities,$36,000 in current receivables,$18,000 in inventories,and $68,000 in current liabilities.The company's quick ratio is closest to

Assuming a starting point of a 1:1 relationship,state the effect of the following transactions on the current ratio.Use increase,decrease,or no effect for your answer.

The following information pertains to Barkley Company.: The inventory turnover ratio for the year was

The use of common-size analysis makes comparisons more meaningful because percentages eliminate the effects of size.

Lew Company's net income was $80,000 last year.The company has 20,000 shares of common stock and 5,000 shares of $100 par value,7 percent preferred stock outstanding.There was no change in the number of common or preferred shares outstanding during the year.The earnings per share of common stock was

In vertical analysis

Bogart Company has 40,000 shares of common stock outstanding.The book value per share of this stock was $60.00 and the market value per share was $75.00 at the end of the year.Net income for the year was $400,000.Interest on long-term debt was $40,000.Dividends paid to common stockholders were $3.00 per share.The tax rate was 30 percent.The company's price-earnings ratio at the end of the year was

Figure 16-6 London Company provided the following income statements for its first three years of operation: Refer to Figure 16-6.Prepare a vertical analysis by using net sales as the base.

Eaton Corporation had net income of $6,000,000 in 2010.Using 2010 as the base year,net income decreased by 70 percent in 2011 and increased by 140 percent in 2012. Required: Compute the net income reported by Eaton Corporation for 2011 and 2012.