Exam 12: Financial Statement Analysis

Basic earnings per share (EPS) is determined using:

A useful tool to compare the performance of similar companies is to do a __________ analysis on each one.

Diluted earnings per share is:

If management wishes to know the ability to pay off upcoming debts, they could use the __________ ratio.

Kacee's sales were $13,444 in 2010 and $12,898 in 2009. The percentage change in Kacee's sales from 2009 to 2010 was __________.

Tammy Company has a beginning accounts receivable balance of $65,000 and an ending accounts receivable balance of $60,000. Net credit sales are $250,000. Tammy's accounts receivable turnover rate is __________.

Given the following balance sheet, calculate the following ratios for 2012: a) current ratio b) accounts receivable turnover c) inventory turnover d) debt ratio Jessica's Jewellery Store Comparative Balance Sheet For Years Ended December 31, 2012 and 2011 (in thousands) In addition, credit sales for 2012 were $525,000 and cost of goods sold was $1,255,500.

After the figure for net income appears on the income statement, __________ data is computed.

A solvency ratio is defined as a way to evaluate a company's stock performance.

When a company sells off part of the business, this would be reported in the __________ section.

What is Jane's rate of return on total assets if average total assets are $100,000; net income is $2,000; interest expense if $1,600; and income tax is $2,000?

Comparative reports in which each item is expressed as a percentage of a base amount without dollar amounts are called:

If a person compares the net sales of two companies as absolutes, and ignores the relative percentages, we can infer that this comparison contains dollar value bias.

Reporting income from continuing operations helps investors make predictions about a company's future earnings.

Merchandise inventory turnover measures the relationship between __________ and __________.

Current assets divided by current liabilities yields the __________ ratio.

If current assets were $100,000 in 2009 and $88,000 in 2010, what was the amount of increase or decrease in percentage terms from 2009 to 2010? (Round to the nearest percent.)

Casey Company reported the following for 2011: Net sales: $220,000 Net income: $37,000 Market price per common share: $35.50 Preferred dividends paid: $4,100 Number of common shares: 10,000 What are the earnings per share for Casey Company (to the nearest cent)?

Financial statement analysis is only used for comparing the company's current performance with the company's past performance.

Eagle Creek Outfitters sells hiking and other outdoor equipment. It also sells a few trail books and outdoor guides about the area. What would the revenue from the books and guides be recorded as in their income statement?