Exam 16: Financial Statement Analysis

Deflorio Corporation's inventory at the end of Year 2 was $156,000 and its inventory at the end of Year 1 was $140,000. The company's total assets at the end of Year 2 were $1,416,000 and its total assets at the end of Year 1 were $1,390,000. Sales amounted to $1,320,000 in Year 2. The company's total asset turnover for Year 2 is closest to:

Erastic Corporation has $14,000 in cash, $8,000 in marketable securities, $34,000 in account receivable, $40,000 in inventories, and $42,000 in current liabilities. The corporation's current assets consist of cash, marketable securities, accounts receivable, and inventory. The corporation's acid-test ratio is closest to:

As the inventory turnover increases, the average sales period decreases.

Garrott Corporation's total assets were $1,505,000 at the end of Year 2 and $1,520,000 at the end of Year 1. Its total stockholders' equity was $1,197,000 at the end of Year 2 and $1,180,000 at the end of Year 1. The company's return on total assets for Year 2 is closest to:

If the acid-test ratio is less than one, then paying off some current liabilities with cash will increase the acid-test (quick) ratio.

Data from Dalpiaz Corporation's most recent balance sheet and income statement appear below: Required:Compute the average collection period for this year:

Granger Corporation had $180,000 in sales on account last year. The beginning accounts receivable balance was $10,000 and the ending accounts receivable balance was $18,000. The corporation's average collection period was closest to: (Round your intermediate calculations to 2 decimal places.)

Feiler Corporation has total current assets of $483,000, total current liabilities of $347,000, total stockholders' equity of $1,057,000, total plant and equipment (net) of $1,031,000, total assets of $1,514,000, and total liabilities of $457,000. The company's current ratio is closest to:

Excerpts from Colter Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,360 and the cost of goods sold was $810.The current ratio at the end of Year 2 is closest to:

Stimac Corporation has total cash of $300,000, no marketable securities, total current receivables of $371,000, total inventory of $187,000, total prepaid expenses of $71,000, total current assets of $929,000, total current liabilities of $315,000, total stockholders' equity of $2,814,000, total assets of $4,115,000, and total liabilities of $1,301,000. The company's acid-test (quick) ratio is closest to:

Jester Corporation's most recent income statement appears below: The beginning balance of total assets was $360,000 and the ending balance was $320,000. The return on total assets is closest to:

Karma Corporation has total assets of $190,000 and total liabilities of $90,000. The corporation's debt-to-equity ratio is closest to:

Kearin Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $8,000. The market price of common stock at the end of Year 2 was $2.02 per share.The company's net profit margin percentage for Year 2 is closest to:

Data from Fontecchio Corporation's most recent balance sheet appear below: The corporation's acid-test ratio is closest to:

Jaquez Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $10,000. The market price of common stock at the end of Year 2 was $5.45 per share.Required:a. What is the company's times interest earned ratio for Year 2?b. What is the company's debt-to-equity ratio at the end of Year 2?c. What is the company's equity multiplier at the end of Year 2?d. What is the company's net profit margin percentage for Year 2?e. What is the company's gross margin percentage for Year 2?f. What is the company's return on total assets for Year 2?g. What is the company's return on equity for Year 2?h. What is the company's earnings per share for Year 2?i. What is the company's price-earnings ratio for Year 2?j. What is the company's dividend payout ratio for Year 2?k. What is the company's dividend yield ratio for Year 2?l. What is the company's book value per share at the end of Year 2?

When computing the return on total assets, the interest expense is added back to net income to show what earnings would have been if the company had no debt.

Excerpts from Sydner Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,590 and the cost of goods sold was $1,020.The working capital at the end of Year 2 is:

If a company's operating cycle is much longer than its average payment period for suppliers, it creates the need to borrow money to fund its inventories and accounts receivable.

Mahoe Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $500. The market price of common stock at the end of Year 2 was $8.06 per share.The company's operating cycle for Year 2 is closest to: (Round your intermediate calculations to 2 decimal places.)

Walker Corporation has provided the following financial data: The company's net operating income for Year 2 was $63,615 and its interest expense was $15,000.Required:a. What is the company's working capital at the end of Year 2?b. What is the company's current ratio at the end of Year 2?c. What is the company's acid-test (quick) ratio at the end of Year 2?d. What is the company's times interest earned ratio for Year 2?e. What is the company's debt-to-equity ratio at the end of Year 2?f. What is the company's equity multiplier at the end of Year 2?