Exam 13: Measuring and Evaluating Financial Performance

The financial information below presents selected information from the financial statements of Pelican Company.Sales revenue during the current year was $13,700,300 and cost of goods sold was $8,905,195.All of Pelican's sales are made on account and are due within 30 days. Required: Part a.Current ratios as of the end of the current and prior year. Part b.Calculate the receivables turnover ratio for the current year. Part c.Calculate the days to collect for the current year. Part d.Calculate the inventory turnover ratio for the current year. Part d.Calculate the days to sell for the current year. Part e.Evaluate the company's liquidity position at the end of the current year.Cite any additional information not given in the problem that would be helpful in evaluating the company's liquidity. Round all ratios to two decimal places.

Listed below are the current ratios of four different companies.Based on these current ratios,which company is in the most liquid position?

The ratio that measures how many times a company replenishes its inventory in a year is the:

Company A uses the FIFO inventory method and Company B uses the LIFO method.If prices are rising and there are no other significant differences between the companies,which of the following is correct?

Which of the following is calculated by dividing net sales revenue by average net receivables?

Choose the appropriate letter to match the term and the definition.Not all definitions will be used. Term 1._____ Time-Series Analysis 2._____ Common-Size Financial Statements 3._____ Management Discussion and Analysis 4._____ Price/Earnings Ratio 5._____ Earnings Per Share 6._____ Comprehensive Income 7._____ Discontinued Operations 8._____ Net Income Definition A)The practice of reporting accounting data in the national monetary unit. B)A nonrecurring item associated with abandoning or selling an operation. C)The earnings of a company after taxes. D)An increase in an asset or a decrease in a liability that results from peripheral activities. E)After-tax earnings adjusted for gains and losses that may disappear before they are realized. F)A section of the annual report that can be used in interpreting the results of financial statement analysis. G)The ratio calculated by dividing the net income by the number of common shares outstanding. H)The ratio calculated by dividing the price of a share of stock by the earnings per share. I)Also known as ratio analysis. J)A nonrecurring item on the income statement that reflects gains and losses associated with extraordinary events. K)Another name for a trend analysis. L)The practice of reporting information in percentages rather than monetary amounts.

During the current accounting period,revenue from credit sales is $671,000.The Accounts Receivable balance is $51,480 at the beginning of the period and $52,200 at the end of the period.Which of the following statements is correct?

Which of the following actions would likely increase the Return on Equity (ROE)?

According to the full disclosure principle,financial reports should present detailed information about every transaction.

Which balance sheet line item has the highest percentage increase from the prior year to the current year?

Comprehensive income may be shown on:

The primary objective of external financial reporting is to:

How competitors calculate inventory cost is least likely to affect comparisons between competitors if inventory makes up a:

Horizontal analysis is the comparison of each financial statement amount to another amount on the same financial statement.

Cost of goods sold divided by average inventory is the calculation for which of the following ratios?

Which ratio is used to evaluate how well a company is managing its property,plant,and equipment?

A debt-to-assets ratio of 0.50 indicates that the company has:

Which of the measures below is used to assess profitability?

Which of the following measures would assist in assessing the profitability of a company?

The principle that requires companies to include notes to their financial statements is the: