For each of the following items, indicate by placing an X in the appropriate column whether it is a measure of: (column 1) liquidity, (column 2) asset management, (column 3) debt, or (column 4) profitability -\[\begin{array} { | l | c | c | c | c | } \hline & & \text { Asset } & & \\ & \text { Liquidity } & \text { Management } & \text { Debt } & \text { Profitability } \\ \hline \text { Rate of return on total assets } & & & & \\ \hline \end{array}\]

The answer of For each of the following items, indicate...

Exam 22: Analyzing Financial Statements

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Tom's Toys has a cash balance of $100,000;temporary investments of $40,000;net receivables of $60,000;and inventory of $400,000.Tom's current liabilities total $125,000.His quick (acid test)ratio is:

(Multiple Choice)

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Question 81

If current assets are $80,000 and current liabilities are $45,000,the current ratio is:

(Multiple Choice)

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Question 82

Topiary's Unlimited has a cost of goods sold of $1,400,000.The beginning merchandise inventory was $195,000 and its ending merchandise inventory is $205,000.Topiary's merchandise inventory turnover ratio is:

(Multiple Choice)

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Question 83

The net income before taxes for the year ended was $320,000.Equity for common stockholders' at the end of the year was $1,600,000 and $1,400,000 at the beginning of the year.The return on common stockholders' equity would be:

(Multiple Choice)

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Question 84

For vertical analysis purposes,a base item on a balance sheet is:

(Multiple Choice)

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Question 85

Net income before taxes - preferred dividends divided by common stockholders' equity is the calculation for:

(Multiple Choice)

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Question 86

The ratio that indicates how many days it takes to turn accounts receivable into cash is the:

(Multiple Choice)

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Question 87

Which of the following ratios helps evaluate how well a company is earning profit for the common stockholders?

(Multiple Choice)

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Question 88

To find the percent of increase or decrease of an item in a comparative balance sheet you use the formula: % change = amount of change/base (new year).

(True/False)

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Question 89

If management wishes to evaluate how effectively the assets of a business are being used,they could use the:

(Multiple Choice)

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Question 90

If Cash is $1,595 in 20X2 and $3,671 in 20X1,what is the percent of increase or (decrease)from 20X1 to 20X2?

(Multiple Choice)

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Question 91

If beginning and ending inventories are $175,000 and $125,000,respectively,and the cost of goods sold is $450,000,what is the inventory turnover ratio?

(Multiple Choice)

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Question 92

If Rick's sales decreased from $90,000 (year 1)to $45,000 (year 2)and its cost of goods sold decreased from $40,000 (year 1)to $15,000 (year 2),then vertical analysis based on sales would show the following for cost of goods sold for the two periods:

(Multiple Choice)

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Question 93

The higher the times interest earned ratio,the more likely:

(Multiple Choice)

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Question 94

The ratio that measures the productivity of total assets used is the:

(Multiple Choice)

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Question 95

If current assets were $88,000 in 20X7 and $100,000 in 20X8,what was the amount of increase or decrease? (Round to nearest percent. )

(Multiple Choice)

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Question 96

For each of the following items, indicate by placing an X in the appropriate column whether it is a measure of: (column 1) liquidity, (column 2) asset management, (column 3) debt, or (column 4) profitability - Asset Liquidity Management Debt Profitability Rate of return on total assets

(Essay)

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Question 97

In a comparative balance sheet,the ending Cash for 2015 was $315,000 and is $262,395 for 2016.The net increase or decrease from 2015 to 2016 is:

(Multiple Choice)

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Question 98

If management wishes to evaluate the ability of a business to use sales to cover the operating expenses,they could use the:

(Multiple Choice)

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Question 99

Explain the following types of ratios: a.Liquidity b.Asset management c.Debt management d.Profitability

(Essay)

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Question 100

Showing 81 - 100 of 121

Exam 22: Analyzing Financial Statements

Tom's Toys has a cash balance of $100,000;temporary investments of $40,000;net receivables of $60,000;and inventory of $400,000.Tom's current liabilities total $125,000.His quick (acid test)ratio is:

If current assets are $80,000 and current liabilities are $45,000,the current ratio is:

Topiary's Unlimited has a cost of goods sold of $1,400,000.The beginning merchandise inventory was $195,000 and its ending merchandise inventory is $205,000.Topiary's merchandise inventory turnover ratio is:

The net income before taxes for the year ended was $320,000.Equity for common stockholders' at the end of the year was $1,600,000 and $1,400,000 at the beginning of the year.The return on common stockholders' equity would be:

For vertical analysis purposes,a base item on a balance sheet is:

Net income before taxes - preferred dividends divided by common stockholders' equity is the calculation for:

The ratio that indicates how many days it takes to turn accounts receivable into cash is the:

Which of the following ratios helps evaluate how well a company is earning profit for the common stockholders?

To find the percent of increase or decrease of an item in a comparative balance sheet you use the formula: % change = amount of change/base (new year).

If management wishes to evaluate how effectively the assets of a business are being used,they could use the:

If Cash is $1,595 in 20X2 and $3,671 in 20X1,what is the percent of increase or (decrease)from 20X1 to 20X2?

If beginning and ending inventories are $175,000 and $125,000,respectively,and the cost of goods sold is $450,000,what is the inventory turnover ratio?

If Rick's sales decreased from $90,000 (year 1)to $45,000 (year 2)and its cost of goods sold decreased from $40,000 (year 1)to $15,000 (year 2),then vertical analysis based on sales would show the following for cost of goods sold for the two periods:

The higher the times interest earned ratio,the more likely:

The ratio that measures the productivity of total assets used is the:

If current assets were $88,000 in 20X7 and $100,000 in 20X8,what was the amount of increase or decrease? (Round to nearest percent. )

For each of the following items, indicate by placing an X in the appropriate column whether it is a measure of: (column 1) liquidity, (column 2) asset management, (column 3) debt, or (column 4) profitability - Asset Liquidity Management Debt Profitability Rate of return on total assets

In a comparative balance sheet,the ending Cash for 2015 was $315,000 and is $262,395 for 2016.The net increase or decrease from 2015 to 2016 is:

If management wishes to evaluate the ability of a business to use sales to cover the operating expenses,they could use the:

Explain the following types of ratios: a.Liquidity b.Asset management c.Debt management d.Profitability

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Paying,recording,and Reporting Payroll and Payroll Taxes:

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property,plant,equipment,and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values,dividends,treasury Stocks,

Corporations and Bonds Payable

Statement of Cash Flows

The Voucher System

Departmental Accounting

Manufacturing Accounting

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