Exam 14: Financial Statement Analysis

The acid-test ratio is also known as the

The acid-test ratio

Horizontal analysis is also called

The days in inventory is computed by multiplying inventory turnover by 365.

The debt to assets ratio measures

Swiss Clothing Store had a balance in the Accounts Receivable account of $820,000 at the beginning of the year and a balance of $780,000 at the end of the year. Net credit sales during the year amounted to $7,200,000. The accounts receivable turnover ratio was

A percentage change can be computed only if the base amount is zero or positive.

Under which of the following cases may a percentage change be computed?

The ratios that are used to determine a company's short-term debt paying ability are

Saira, Inc. has the following income statement (in millions): SAIRA, INC. Income Statement For the Year Ended December 31, 2020 Net Sales \ 300 Cost of Goods Sold 180 Gross Profit 120 Operating Expenses 45 Net Income \7 5 Using vertical analysis, what percentage is assigned to Cost of Goods Sold?

The following financial statement information is available for Penn Corporation: 2020 2019 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 2020 is

A company has an average inventory on hand of $60,000 and the days in inventory is 73 days. What is the cost of goods sold?

A successful grocery store would probably have

The three basic tools of analysis are horizontal analysis, vertical analysis, and ratio analysis.

Proctor Corporation had beginning inventory $100,000, cost of goods sold $750,000, and ending inventory $150,000. What was Proctor's inventory turnover?

If the average collection period is 60 days, what is the accounts receivable turnover?

Country Company reported the following on its income statement: Income before income taxes \ 850,000 Income tax expense 250,000 Net income \ 650,000 An analysis of the income statement revealed that interest expense was $100,000. Country Company's times interest earned was

In reporting discontinued operations, the income statement should show in a special section 1. gains on the disposal of a discontinued component. 2. losses on the disposal of a discontinued component.

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 cost of goods sold data for a company: 2020 \ 1,704,000 2019 1,400,000 2018 1,200,000 If 2018 is the base year, what is the percentage increase in cost of goods sold from 2018 to 2020?