Exam 14: Financial Statement Analysis

The Bedford Corporation reported the following income statement and balance sheet amounts and additional information for the end of the current year. Inventory and prepaid expenses account for $30,000 of the current year's current assets. Average inventory for the current year is $36,250. Average net accounts receivable for the current year is $45,000. There are 35,000 shares of common stock outstanding. Total dividends paid during the current year were $17,000. The market price per share of common stock is $20. What is the days' sales in receivables for the current year?

The Nichols Corporation data for the current year: What would a horizontal analysis report with respect to net income before income tax expense and net income?

The McCumber Corporation data for the current year: With respect to selling/general expenses, what would a horizontal analysis report?

Use the following information to do a horizontal analysis of Marcus Corporation's income statement for the current year and prior year: What is the dollar change in gross profit?

The study of percentage changes in comparative financial statements is an example of

A common size statement reports only percentages.

The Bedford Corporation reported the following income statement and balance sheet amounts and additional information for the end of the current year. Inventory and prepaid expenses account for $30,000 of the current year's current assets. Average inventory for the current year is $36,250. Average net accounts receivable for the current year is $45,000. There are 35,000 shares of common stock outstanding. Total dividends paid during the current year were $17,000. The market price per share of common stock is $20. What is the price-earnings ratio for the current year?

Which type of analysis would reveal a sales increase of $5000 from Year 1 to Year 2?

An accurate description of horizontal analysis would be which of the following?

The McCumber Corporation data for the current year: With respect to net income before income tax expense and net income, what would a horizontal analysis report?

Most financial statement analysis covers trends of more than one year.

The Bedford Corporation reported the following income statement and balance sheet amounts and additional information for the end of the current year. Inventory and prepaid expenses account for $30,000 of the current year's current assets. Average inventory for the current year is $36,250. Average net accounts receivable for the current year is $45,000. There are 35,000 shares of common stock outstanding. Total dividends paid during the current year were $17,000. The market price per share of common stock is $20. What is the book value per share of common stock on the last day of the current year?

The Nichols Corporation data for the current year: What would a horizontal analysis report with respect to selling/general expenses?

The Stemple Corporation data for the current year: What would a horizontal analysis report with respect to selling/general expenses?

The Nichols Corporation data for the current year: What would a horizontal analysis report with respect to common stock?

A table that lists items of a balance sheet in dollars and percentages for two companies would be

Working capital is a measure of a company's ability to pay its current obligations.

The inventory turnover ratio is the ratio of cost of goods sold to average inventory.

Use the following information to do a horizontal analysis of Carlin Corporation's balance sheet for the end of the current and prior years. Fill in the table.

The following information relates to Woolf Unlimited for the past two years. What is the book value per share of common stock for the current year?