Question 1

Days' sales in inventory is calculated by

Accepted Answer

A) Ending inventory divided by cost of goods sold times 365 
B) Dividing cost of goods sold by merchandise inventory 
C) Dividing merchandise inventory by cost of goods sold 
D) Cost of goods sold divided by ending inventory times 365 
E) Ending inventory divided by cost of goods sold 
A) Ending inventory divided by cost of goods sold times 365 
B) Dividing cost of goods sold by merchandise inventory 
C) Dividing merchandise inventory by cost of goods sold 
D) Cost of goods sold divided by ending inventory times 365 
E) Ending inventory divided by cost of goods sold

Question 2

A traditional rule of thumb for an acceptable acid-test ratio and current ratio is 2 to 1 for the current ratio and 1 to 1 for the acid-test ratio.

Accepted Answer

A) True 
 B)False

Question 3

Outdoors Unlimited had net sales of $285,000 for Year 1,and $575,000 for Year 2.The year-end balances of accounts receivable were $49,000 for Year 1,and $85,000 for Year 2.Calculate the days' sales uncollected at the end of each year and describe any changes in the apparent liquidity of the company's receivables.

Accepted Answer

Year 1 = 63 days; Year 2 = 54

Question 4

The merchandise turnover ratio is calculated by dividing average merchandise inventory by cost of goods sold.

Accepted Answer

A) True 
 B)False

Question 5

Seinfield Corporation had cash of $16,000 and total assets of $178,300.The common-size percent for cash was 7.85%.

Accepted Answer

A) True 
 B)False

Question 6

Firms with an accounts payable turnover rate that is faster than the industry norm are

Accepted Answer

A) Paying creditors faster than the norm 
B) Paying creditors faster than the norm and managing their payments to suppliers well 
C) In financial difficulty 
D) Managing their payments to suppliers well 
E) Paying creditors faster than the norm and are in financial difficulty 
A) Paying creditors faster than the norm 
B) Paying creditors faster than the norm and managing their payments to suppliers well 
C) In financial difficulty 
D) Managing their payments to suppliers well 
E) Paying creditors faster than the norm and are in financial difficulty

Question 7

The following information for Z-Mart is for the month of November:
   Instructions: Calculate Z-Mart's gross margin ratio.

Accepted Answer

The answer of The following information for Z-Mart is for...

Question 8

The debt ratio is the relationship between a company's

Accepted Answer

A) Equity and liabilities 
B) Liabilities and equity 
C) Liabilities and assets 
D) Assets and liabilities 
E) Equity and assets 
A) Equity and liabilities 
B) Liabilities and equity 
C) Liabilities and assets 
D) Assets and liabilities 
E) Equity and assets

Question 9

An advantage of common-size statements is that they reflect the relative sizes of companies under analysis.

Accepted Answer

A) True 
 B)False

Question 10

The common rule of thumb is that a company's acid-test ratio should be at least 1.5 to 1.

Accepted Answer

A) True 
 B)False

Question 11

Lottery Corp had a market price of $56.50,earnings per share of $1.25,and dividends per share of $0.40.Its price-earnings ratio was

Accepted Answer

A) 3.1 
B) 45.2 
C) 48.6 
D) 49.3 
E) 51.2 
A) 3.1 
B) 45.2 
C) 48.6 
D) 49.3 
E) 51.2

Question 12

Marble Corp.paid $.56 in common annual dividends per share.Its earnings per share was $5.20.The market price per share was $30.00.Its dividend yield was

Accepted Answer

A) 11.4% 
B) 14.0% 
C) 7.1% 
D) 1.9% 
E) 8.75% 
A) 11.4% 
B) 14.0% 
C) 7.1% 
D) 1.9% 
E) 8.75%

Question 13

Trend analysis is also called

Accepted Answer

A) Trend percent analysis 
B) Financial analysis 
C) Index number analysis 
D) Trend percent analysis and index number analysis 
E) Financial analysis and index number analysis 
A) Trend percent analysis 
B) Financial analysis 
C) Index number analysis 
D) Trend percent analysis and index number analysis 
E) Financial analysis and index number analysis

Question 14

Sonie had average accounts receivable of $87 million and net sales of $864 million.Its accounts receivable turnover was

Accepted Answer

A) 10.3 
B) 9.9 
C) 36.1 
D) 9.1 
E) 12.8 
A) 10.3 
B) 9.9 
C) 36.1 
D) 9.1 
E) 12.8

Question 15

Houston Co.had net sales of $186,000 and average total assets of $173,000.Its total asset turnover was 1.08.

Accepted Answer

A) True 
 B)False

Question 16

Accounts receivable turnover is calculated by dividing net sales by average accounts receivable.

Accepted Answer

A) True 
 B)False

Question 17

A share's market value is affected by

Accepted Answer

A) Expected growth in earnings 
B) Expected growth in dividends 
C) Expected business opportunities 
D) Expected growth in earnings and dividends 
E) All of these 
A) Expected growth in earnings 
B) Expected growth in dividends 
C) Expected business opportunities 
D) Expected growth in earnings and dividends 
E) All of these

Question 18

Guido Corporation's shares are selling for $67.85 per share.Its earnings per share is $4.29.Calculate the price-earnings ratio.

Accepted Answer

The answer of Guido Corporation's shares are selling for $67.85...

Question 19

The acid-test ratio is a more accurate measure of a company's liquidity than the current ratio.

Accepted Answer

A) True 
 B)False

Question 20

In April,Stride Rite had $4,875 million in sales and $990 million in accounts receivable.For the same period,Geox had $5,595 million in sales and $834 million in accounts receivable.Calculate the days' sales uncollected for both companies.Which company is doing a better job at managing collection of its receivables?

Accepted Answer

Stride Rite $990/$4,875 × 365

Days' sales in inventory is calculated by

A traditional rule of thumb for an acceptable acid-test ratio and current ratio is 2 to 1 for the current ratio and 1 to 1 for the acid-test ratio.

The merchandise turnover ratio is calculated by dividing average merchandise inventory by cost of goods sold.

Seinfield Corporation had cash of $16,000 and total assets of $178,300.The common-size percent for cash was 7.85%.

Firms with an accounts payable turnover rate that is faster than the industry norm are

The following information for Z-Mart is for the month of November: Instructions: Calculate Z-Mart's gross margin ratio.

The debt ratio is the relationship between a company's

An advantage of common-size statements is that they reflect the relative sizes of companies under analysis.

The common rule of thumb is that a company's acid-test ratio should be at least 1.5 to 1.

Lottery Corp had a market price of $56.50,earnings per share of $1.25,and dividends per share of $0.40.Its price-earnings ratio was

Marble Corp.paid $.56 in common annual dividends per share.Its earnings per share was $5.20.The market price per share was $30.00.Its dividend yield was

Trend analysis is also called

Sonie had average accounts receivable of $87 million and net sales of $864 million.Its accounts receivable turnover was

Houston Co.had net sales of $186,000 and average total assets of $173,000.Its total asset turnover was 1.08.

Accounts receivable turnover is calculated by dividing net sales by average accounts receivable.

A share's market value is affected by

Guido Corporation's shares are selling for $67.85 per share.Its earnings per share is $4.29.Calculate the price-earnings ratio.

The acid-test ratio is a more accurate measure of a company's liquidity than the current ratio.

Property, plant and Equipment Intangibles

Current Liabilities

Partnerships

Organization and Operation of Corporations

Corporate Reporting: Income, earnings Per Share, and Retained Earnings

Bonds and Long-Term Notes Payable

Accounting for Debt and Share Investments

Reporting and Analyzing Cash Flows

Filters

Exam 9: Analyzing Financial Statements

Days' sales in inventory is calculated by

A traditional rule of thumb for an acceptable acid-test ratio and current ratio is 2 to 1 for the current ratio and 1 to 1 for the acid-test ratio.

The merchandise turnover ratio is calculated by dividing average merchandise inventory by cost of goods sold.

Seinfield Corporation had cash of $16,000 and total assets of $178,300.The common-size percent for cash was 7.85%.

Firms with an accounts payable turnover rate that is faster than the industry norm are

The following information for Z-Mart is for the month of November: Instructions: Calculate Z-Mart's gross margin ratio.

The debt ratio is the relationship between a company's

An advantage of common-size statements is that they reflect the relative sizes of companies under analysis.

The common rule of thumb is that a company's acid-test ratio should be at least 1.5 to 1.

Lottery Corp had a market price of $56.50,earnings per share of $1.25,and dividends per share of $0.40.Its price-earnings ratio was

Marble Corp.paid $.56 in common annual dividends per share.Its earnings per share was $5.20.The market price per share was $30.00.Its dividend yield was

Trend analysis is also called

Sonie had average accounts receivable of $87 million and net sales of $864 million.Its accounts receivable turnover was

Houston Co.had net sales of $186,000 and average total assets of $173,000.Its total asset turnover was 1.08.

Accounts receivable turnover is calculated by dividing net sales by average accounts receivable.

A share's market value is affected by

Guido Corporation's shares are selling for $67.85 per share.Its earnings per share is $4.29.Calculate the price-earnings ratio.

The acid-test ratio is a more accurate measure of a company's liquidity than the current ratio.

Property, plant and Equipment Intangibles

Current Liabilities

Partnerships

Organization and Operation of Corporations

Corporate Reporting: Income, earnings Per Share, and Retained Earnings

Bonds and Long-Term Notes Payable

Accounting for Debt and Share Investments

Reporting and Analyzing Cash Flows

Filters