Exam 13: Financial Statement Analysis

BVI Corporation had net income of $1,600,000 and paid dividends to common stockholders of $400,000 in 2017. The weighted average number of shares outstanding in 2017 was 500,000 shares. BVI Corporation's common stock is selling for $40 per share on the NASDAQ. BVI Corporation's price-earnings ratio is

Here are the comparative income statements of Georgia Development Corporation. Instructions (a) Prepare a horizontal analysis of the income statement data for Georgia Development Corporation using 2016 as a base. (Show the amounts of increase of decrease.) (b) Prepare a vertical analysis of the income statement data for Georgia Development Corporation for both years.

Tito Corporation had net income of $2,000,000 and paid dividends to common stockholders of $300,000 in 2017. The weighted average number of shares outstanding in 2017 was 400,000 shares. Tito Corporation's common stock is selling for $50 per share on the NASDAQ. Tito Corporation's price-earnings ratio is

Here is the income statement for Ginsberg, Inc. Additional information: 1. Common stock outstanding January 1, 2017, was 30,000 shares, and 40,000 shares were outstanding at December 31, 2017. 2. The market price of Gillman, Inc., stock was $15.86 in 2017. 3. Cash dividends of $16,000 were paid, $4,500 of which were to preferred stockholders. Instructions Compute the following measures for 2017. (a) Earnings per share. (b) Price-earnings ratio. (c) Payout ratio. (d) Times interest earned.

The accounts receivable turnover is calculated by dividing ________________ by average ___________________.

The following information pertains to Unique Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. What is the return on assets for this company?

The following items were taken from the financial statements of Kramer Manufacturing, Inc., over a three-year period: Instructions Using horizontal analysis and 2016 as the base year, compute the trend percentages for net sales, cost of goods sold, and gross profit. Explain whether the trends are favorable or unfavorable for each item.

A company has an accounts receivable turnover of 10. The average net accounts receivable during the period are $900,000. What is the amount of net credit sales for the period?

The following information pertains to Blue Flower Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. What is the profit margin for this company?

The following data are taken from the financial statements of Bar Harbor Company: Instructions (a) Compute the accounts receivable turnover and the average collection period for both years. (b) What conclusion can an analyst draw about the management of the accounts receivable?

Comprehensive income would not include

Which of the following is not reported net of tax on the statement of comprehensive income?

Which one of the following is not a characteristic generally evaluated in ratio analysis?

The asset turnover measures

The following information pertains to Blue Flower Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. What is the price-earnings ratio for this company?

In vertical analysis

Match the ratios with their formulas by entering the appropriate letter in the space provided. - Net income/Net sales

Dandy Candy Company sold its licorice division resulting in a loss of $80,000. Assuming a tax rate of 25%, the loss on this disposal will be reported on the income statement at what amount?

A general rule to use in assessing the average collection period is that it

Expressing each item in a financial statement as a percent of a base amount is called ______________ analysis.