Exam 22: Analyzing Financial Statements

With a beginning Accounts Receivable balance of $60,000, an ending balance of $66,000, and net credit sales of $520,000, compute accounts receivable turnover ratio. (Round your answer two decimal places.)

If current assets were $150,000, merchandise inventory was $55,000, and current liabilities were $15,000, the acid test ratio is: (Round your answer two decimal places.)

Define two types of comparative income statements and compare the information provided by them.

May Cooperative has total assets of $456,000, current assets $133,000, total liabilities $263,000, and current liabilities 87,000. What is the debt to total assets ratio?

The ratios that measure a company's ability to earn profits are known as.

A trend analysis is a type of horizontal analysis.

A horizontal analysis of an income statement automatically provides the return on sales ratio and the gross profit ratio.

If beginning and ending inventories are $12,000 and $29,000, respectively, and cost of goods sold is $480,000, what is the inventory turnover ratio? (Round your answer two decimal places.)

A vertical analysis of an income statement compares net income (loss) to net sales within the same year.

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. -

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

Complete the horizontal analysis of Soopy's Used Cars. (Round all percentages to the nearest tenth of a 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. -

May Cooperative has total liabilities of $263,000, current liabilities 87,000, and stockholders' equity $347,000. What is the debt to total stockholders' equity ratio?

Which analysis compares line items on an income statement with those from the prior year?

Net income was $24,000 in Year 1 and $40,000 in Year 2. The percentage increase or decrease in net income was:

Selected data for Stick's Design are given as of December 31, Year 1 and Year 2: Required: Compute the following: a. ________ Current ratio for Year 2. b. ________ Acid-test ratio for Year 2. c. ________ Accounts receivable turnover for Year 2. d. ________ Average collection period for Year 2. e. ________ Inventory turnover for Year 2.

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. -

Elegant Operators has net sales in the amount of $622,000, a cash amount of $333,000, and accounts receivables of $50,000. What is the asset turnover ratio?

The current ratio for a company with current assets of $129,000, current liabilities of $51,000, total assets of $152,000, and net sales of $84,000, would be: (Round your answers two decimal places, X.XX%.)