Question 1

Using these data from the comparative balance sheet of Sunta Fe Spice Company, perform horizontal analysis.

Accepted Answer

The answer of Using these data from the comparative balance...

Question 2

If a company has sales of $130 in 2017 and $182 in 2016, the percentage decrease in sales from 2016 to 2017 is 40%.

Accepted Answer

A) True 
 B)False

Question 3

Leverage and return on equity are closely related.

Accepted Answer

A) True 
 B)False

Question 4

In vertical analysis, the base amount for salaries and wages expense is generally

Accepted Answer

A)  net sales. 
B)  salary & wages expense in a previous year. 
C)  gross profit. 
D)  net income. 
A)  net sales. 
B)  salary & wages expense in a previous year. 
C)  gross profit. 
D)  net income.

Question 5

The following information was taken from the financial statements of Bjorg Company:   Instructions
(a) Compute the net sales for each year.
(b) Compute the cost of goods sold in dollars and as a percentage of net sales for each year.
(c) Compute operating expenses in dollars and as a percentage of net sales for each year. (Income taxes are not operating expenses).

Accepted Answer

The answer of The following information was taken from the...

Question 6

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 return on assets for this company?

Accepted Answer

A)  16.1% 
B)  11.3% 
C)  6.5% 
D)  12.9% 
A)  16.1% 
B)  11.3% 
C)  6.5% 
D)  12.9%

Question 7

The following schedule is a display of what type of analysis?

Accepted Answer

A)  Horizontal analysis 
B)  Differential analysis 
C)  Vertical analysis 
D)  Ratio analysis 
A)  Horizontal analysis 
B)  Differential analysis 
C)  Vertical analysis 
D)  Ratio analysis

Question 8

Distinguishing normal levels of income from irregular items is of interest for the

Accepted Answer

The answer of Distinguishing normal levels of income from irregular...

Question 9

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 inventory turnover for this company?

Accepted Answer

A)  2.6 times 
B)  4.6 times 
C)  5.3 times 
D)  0.38 time 
A)  2.6 times 
B)  4.6 times 
C)  5.3 times 
D)  0.38 time

Question 10

Accounts receivable turnover is useful in assessing the profitability of receivables.

Accepted Answer

A) True 
 B)False

Question 11

Trading on the equity (leverage) refers to the

Accepted Answer

A)  amount of working capital. 
B)  amount of capital provided by owners. 
C)  use of borrowed money to increase the return to owners. 
D)  number of times interest is earned. 
A)  amount of working capital. 
B)  amount of capital provided by owners. 
C)  use of borrowed money to increase the return to owners. 
D)  number of times interest is earned.

Question 12

On January 1, 2017, Tri-State Industries had cash and common stock of $180,000. At that date the company had no other asset, liability or equity balances. On January 2, 2017, it purchased $160,000 of equity securities for cash that it classified as available-for-sale. It received cash dividends of $12,000 during the year on these securities. In addition, it had an unrealized holding gain on these securities of $32,000 net of tax. Based on this information, what is the amount of comprehensive income in 2017?

Accepted Answer

A)  $44,000 
B)  $20,000 
C)  $12,000 
D)  $32,000 
A)  $44,000 
B)  $20,000 
C)  $12,000 
D)  $32,000

Question 13

Chodron Corporation had net credit sales of $13,000,000 and cost of goods sold of $9,250,000 for the year. The average inventory for the year amounted to $1,250,000. The average days in inventory during the year was approximately

Accepted Answer

A)  261 days. 
B)  122 days. 
C)  49 days. 
D)  35 days. 
A)  261 days. 
B)  122 days. 
C)  49 days. 
D)  35 days.

Question 14

Improper recognition of income is not one of the factors affecting the quality of earnings.

Accepted Answer

A) True 
 B)False

Question 15

The times interest earned is calculated by dividing ___________________ before __________________ and __________________ by interest expense.

Accepted Answer

income inc

Question 16

Assume the following cost of goods sold data for a company: $$\begin{array} { l r } 
2018 & \$ 1,400,000 \
2017 & 1,200,000 \
2016 & 1,000,000
\end{array}$$ If 2016 is the base year, what is the percentage increase in cost of goods sold from 2016 to 2018?

Accepted Answer

A)  140% 
B)  40% 
C)  20% 
D)  17% 
A)  140% 
B)  40% 
C)  20% 
D)  17%

Question 17

Using vertical analysis of the income statement, a company's net income as a percentage of net sales is 15%; therefore, the cost of goods sold as a percentage of sales must be 85%.

Accepted Answer

A) True 
 B)False

Question 18

The profit margin is calculated by dividing

Accepted Answer

A)  sales by cost of goods sold. 
B)  gross profit by net sales. 
C)  net income by stockholders' equity. 
D)  net income by net sales. 
A)  sales by cost of goods sold. 
B)  gross profit by net sales. 
C)  net income by stockholders' equity. 
D)  net income by net sales.

Question 19

Other comprehensive income is reported on the statement of comprehensive income immediately

Accepted Answer

A)  before income from continuing operations. 
B)  after comprehensive income. 
C)  before income before income taxes. 
D)  after discontinued operations. 
A)  before income from continuing operations. 
B)  after comprehensive income. 
C)  before income before income taxes. 
D)  after discontinued operations.

Question 20

Short-term creditors are usually most interested in assessing

Accepted Answer

A)  solvency. 
B)  liquidity. 
C)  marketability. 
D)  profitability. 
A)  solvency. 
B)  liquidity. 
C)  marketability. 
D)  profitability.

Using these data from the comparative balance sheet of Sunta Fe Spice Company, perform horizontal analysis.

If a company has sales of $130 in 2017 and $182 in 2016, the percentage decrease in sales from 2016 to 2017 is 40%.

Leverage and return on equity are closely related.

In vertical analysis, the base amount for salaries and wages expense is generally

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 return on assets for this company?

The following schedule is a display of what type of analysis?

Distinguishing normal levels of income from irregular items is of interest for the

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 inventory turnover for this company?

Accounts receivable turnover is useful in assessing the profitability of receivables.

Trading on the equity (leverage) refers to the

Chodron Corporation had net credit sales of $13,000,000 and cost of goods sold of $9,250,000 for the year. The average inventory for the year amounted to $1,250,000. The average days in inventory during the year was approximately

Improper recognition of income is not one of the factors affecting the quality of earnings.

The times interest earned is calculated by dividing _ before and __ by interest expense.

Assume the following cost of goods sold data for a company: 2018 \ 1,400,000 2017 1,200,000 2016 1,000,000 If 2016 is the base year, what is the percentage increase in cost of goods sold from 2016 to 2018?

Using vertical analysis of the income statement, a company's net income as a percentage of net sales is 15%; therefore, the cost of goods sold as a percentage of sales must be 85%.

The profit margin is calculated by dividing

Other comprehensive income is reported on the statement of comprehensive income immediately

Short-term creditors are usually most interested in assessing

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Stock Transactions

Statement of Cash Flows

Specimen Financial Statements: Apple Inc

Specimen Financial Statements: Pepsico, Inc

Specimen Financial Statements: the Coca-Cola Company

Specimen Financial Statements: Amazoncom, Inc

Specimen Financial Statements: Wal-Mart Stores, Inc

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Exam 13: Financial Statement Analysis

Using these data from the comparative balance sheet of Sunta Fe Spice Company, perform horizontal analysis.

If a company has sales of $130 in 2017 and $182 in 2016, the percentage decrease in sales from 2016 to 2017 is 40%.

Leverage and return on equity are closely related.

In vertical analysis, the base amount for salaries and wages expense is generally

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 return on assets for this company?

The following schedule is a display of what type of analysis?

Distinguishing normal levels of income from irregular items is of interest for the

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 inventory turnover for this company?

Accounts receivable turnover is useful in assessing the profitability of receivables.

Trading on the equity (leverage) refers to the

Chodron Corporation had net credit sales of $13,000,000 and cost of goods sold of $9,250,000 for the year. The average inventory for the year amounted to $1,250,000. The average days in inventory during the year was approximately

Improper recognition of income is not one of the factors affecting the quality of earnings.

The times interest earned is calculated by dividing ___________________ before __________________ and __________________ by interest expense.

Assume the following cost of goods sold data for a company: 2018 \ 1,400,000 2017 1,200,000 2016 1,000,000 If 2016 is the base year, what is the percentage increase in cost of goods sold from 2016 to 2018?

Using vertical analysis of the income statement, a company's net income as a percentage of net sales is 15%; therefore, the cost of goods sold as a percentage of sales must be 85%.

The profit margin is calculated by dividing

Other comprehensive income is reported on the statement of comprehensive income immediately

Short-term creditors are usually most interested in assessing

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Stock Transactions

Statement of Cash Flows

Specimen Financial Statements: Apple Inc

Specimen Financial Statements: Pepsico, Inc

Specimen Financial Statements: the Coca-Cola Company

Specimen Financial Statements: Amazoncom, Inc

Specimen Financial Statements: Wal-Mart Stores, Inc

Filters

The times interest earned is calculated by dividing _ before and __ by interest expense.