Exam 15: Financial Statements and Ratios

Find the current ratio and the acid-test ratio for the indicated year. Round each ratio to the nearest hundredth of a percent. - Last year current liabilities were $197,000.

Complete the horizontal analysis for the balance sheet. Round to the nearest tenth of a percent. -

Complete the horizontal analysis for the balance sheet. Round to the nearest tenth of a percent. -

Find (a) the gross profit, (b) the net income before taxes, and (c) the net income after taxes. -MidState Machinery has a cost of goods sold of $90,000, operating expenses of $66,000, taxes of $9,000, and net sales of $288,000.

Provide an appropriate response. -Explain how to determine the cost of goods sold.

The following chart shows some figures from an income statement. Prepare a vertical analysis by expressing each item as a percent of net sales. Round percents to the nearest tenth of a percent. -

Complete the horizontal analysis for the comparative income statement. Round to the nearest tenth of a percent. -

Complete the horizontal analysis for the balance sheet. Round to the nearest tenth of a percent. -

Complete the balance sheet. -Data-Serve Computer Services: fixed assets $59,000; mortgages $36,000; accounts payable $19,000; notes payable $15,000; long-term notes $26,000; equity $60,000; cash $17,000; inventory $18,000; Notes receivable $9,000; accounts receivable $53,000

Find (a) the gross profit, (b) the net income before taxes, and (c) the net income after taxes. -Eddie's TV and Appliance had gross sales of $619,000, returns of $27,000, operating expenses of $153,000, taxes of $30,950, and a cost of goods sold of $241,000.

Prepare a vertical analysis. Round percents to the nearest tenth of a percent. -Rosie's Cleaning Service had a cost of goods sold of $48,000, operating expenses of $218,000, and net sales of $365,000.

Provide an appropriate response. -Explain the purpose of a balance sheet.

Find the current ratio and the acid-test ratio for the indicated year. Round each ratio to the nearest hundredth of a percent. - This year current liabilities are $234,000.

Calculate the current ratio and the acid-test ratio. Is the company healthy based on the guidelines given in the text? -

Find the current ratio and the acid-test ratio for the indicated year. Round each ratio to the nearest hundredth of a percent. - This year current liabilities are $227,000.

The following chart shows some figures from an income statement. Prepare a vertical analysis by expressing each item as a percent of net sales. Round percents to the nearest tenth of a percent. -

Complete the income statement. -Frank's Nursery had gross sales of $2,273,000 with returns of $57,800. The inventory on January 1 was $567,000. During the year $1,130,000 worth of goods was purchased with freight of $5,600. The Inventory on December 31 was $525,000. Wages and salaries were $81,600, rent was $10,200, Advertising was $17,700, utilities were $5,200, business taxes totaled $8,500, and miscellaneous Expenses were $6,100.

Provide an appropriate response. -Explain the purpose of a horizontal analysis of an income statement.

Provide an appropriate response. -Explain why the acid-test ratio is a better measure of financial health than the current ratio.

Find the ratio of net income after taxes to average owner's equity. Round to the nearest tenth of a percent. -Owner's equity at beginning of year: $531,000. Owner's equity at end of year: $852,000. Net income after taxes: $10,500