The following amounts were taken from the financial statements of Leaf Company: $\begin{array}{lrr} &2017&2016\\ \text { Total assets } & \$ 800,000 & \$ 880,000 \\ \text { Net sales } & 720,000 & 650,000 \\ \text { Gross profit } & 352,000 & 320,000 \\ \text { Net income } & 126,000 & 117,000 \\ \text { Weighted average number of common shares outstanding } & 90,000 & 90,000 \\ \text { Market price of common stock } & \$ 35 & \$ 39 \end{array}$ The return on assets ratio for 2017 is

A) 15.8%. B) 15%. C) 14.3%. D) 14.5%. A) 15.8%. B) 15%. C) 14.3%. D) 14.5%.

Exam 18: Financial Statement Analysis

The following amounts were taken from the financial statements of Leaf Company: 2017 2016 Total assets \ 800,000 \ 880,000 Net sales 720,000 650,000 Gross profit 352,000 320,000 Net income 126,000 117,000 Weighted average number of common shares outstanding 90,000 90,000 Market price of common stock \ 35 \ 39 The return on assets ratio for 2017 is

(Multiple Choice)

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Question 221

Horizontal analysis evaluates financial statement data

(Multiple Choice)

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Question 222

Troy Inc. decided on January 1 to discontinue its telescope manufacturing division. On July 1 the division's assets with a book value of $1260000 are sold for $840000. Operating income from January 1 to June 30 for the division amounted to $130000. Ignoring income taxes what total amount should be reported on Troy's income statement for the current year under the caption Discontinued Operations?

(Multiple Choice)

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Question 223

A current ratio of 1.2 to 1 indicates that a company's current assets exceed its current liabilities.

(True/False)

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Question 224

Showing 221 - 224 of 224

Horizontal analysis evaluates financial statement data

A current ratio of 1.2 to 1 indicates that a company's current assets exceed its current liabilities.

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Accounting Information Systems

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Corporations: Organization and Capital Stock Transactions

Corporations: Dividends, Retained Earnings, and Income Reporting

Long-Term Liabilities

Investments

Statement of Cash Flows

Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Incremental Analysis and Capital Budgeting

Time Value of Money

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