Exam 14: Managerial Accounting

Which one of the following is primarily interested in the liquidity of a company?

When the disposal of a significant component occurs, the income statement should report income from continuing operations but not income (loss) from discontinued operations.

Assume the following sales data for a company: 2017 \ 1,050,000 2016 950,000 2015 800,000 2014 650,000 If 2014 is the base year, what is the percentage increase in sales from 2014 to 2016?

In analyzing the financial statements of a company, a single item on the financial statements

When the disposal of a significant component occurs, the income statement should report both income from continuing operations and income (loss) from discontinued operations.

The following financial statement information is available for Penn Corporation: 2017 2016 Stockholders' equity - common \ 350,000 \ 270,000 Net sales 784,000 697,000 Cost of goods sold 406,000 377,000 Net income 115,000 80,000 Inc tax expense 48,000 29,000 Interest expense 14,000 14,000 Dividends paid to preferred stockholders 24,000 20,000 Dividends paid to common stockholders 15,000 10,000 The return on common stockholders' equity for 2017 is

Horizontal analysis is also called

Asset turnover measures

Quasar Corporation had net income of $210,000 and paid dividends to common stockholders of $63,000 in 2017.The weighted average number of shares outstanding in 2017 was 50,000 shares.Quasar Corporation's common stock is selling for $30 per share on the New York Stock Exchange. Quasar Corporation's payout ratio for 2017 is

Pro forma income usually excludes items that the company thinks are unusual or nonrecurring.

Comparisons of financial data made within a company are called

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

The current ratio may also be referred to as the

The following information pertains to Ortiz Company.Assume that all balance sheet amounts represent both average and ending balance figures.Assume that all sales were on credit. Assets Cash and short-term investments \ 45,000 Accounts receivable (net) 30,000 Inventory 40,000 Property, plant and equipment 310,000 Total Assets \4 25,000 Liabilities and Stockholders' Equity Current liabilities \ 55,000 Long-term liabilities 110,000 Stockholders' equity-common 260,000 Total Liabilities and Stockholders' Equity \4 25,000 Income Statement Sales \ 120,000 Cost of goods sold 65,000 Gross profit \5 5,000 Operating expenses 30,000 Net income \2 9,500 Number of shares of common stock 6,000 Market price of common stock \ 20 Dividends per share .50 What is the return on assets for Ortiz?

Turnbull Department Store had net credit sales of $18,000,000 and cost of goods sold of $15,000,000 for the year.The average inventory for the year amounted to $2,500,000.The average number of days in inventory during the year was

Vertical and horizontal analyses are concerned with the format used to prepare financial statements.

Lake Company reported the following on its income statement: Income before income taxes \ 600,000 Income tax expense 150,000 Net income \ 450,000 An analysis of the income statement revealed that interest expense was $60,000.Lake Company's times interest earned was

Saira, Inc.has the following income statement (in millions): SAIRA, INC. Income Statement For the Year Ended December 31, 2017 Net Sales \ 300 Cost of Goods Sold 180 Gross Profit 120 Operating Expenses 45 Net Income \ 75 Using vertical analysis, what percentage is assigned to Net Income?

Horizontal analysis evaluates a series of financial statement data over a period of time

Long-term creditors are usually most interested in evaluating