Exam 14: Financial Statement Analysis

To follow is selected information about The Boston Company for the current year and prior year. What is the current year's selling and general expenses percentage (as would be found on a vertical analysis of the income statement for the current year)?

In a vertical analysis of a balance sheet, total liabilities is assigned a percentage of 100.

The McCumber Corporation data for the current year: With respect to common stock, what would a horizontal analysis report?

Net income is used as the base for vertical analysis percentages on the income statement.

In performing a vertical analysis of an income statement, which of the following is generally used as the base amount?

The A/R turnover ratio is the ratio of net credit sales to average net accounts receivable.

Horizontal analysis and vertical analysis are used to analyze the performance of a single company.

Days' sales in receivables is a measure of a company's ability to collect their accounts receivable.

The ________ balance sheets displays only percentages.

he following information relates to Harris Corporation. Required: a. What is the acid-test ratio for the current year? b. What is the inventory turnover for the current year? c. What is days' sales in receivables for the current year? d. What is the book value per share of common stock for the current year? e. What is the price-earnings ratio for the current year? f. What is the rate of return on total assets for the current year? g. What is the times-interest-earned ratio for the current year? h. What is the current ratio for the current year?

Vertical analysis would rarely be performed on which of the following?

The ________ ratio measures the ability of a company to pay all current liabilities if they came due immediately.

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 percentage change in cost of goods sold?

The formula for computing the rate of return on common stockholders' equity is

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 acid-test ratio for the current year?

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 percentage change in net income?

Which type of analysis compares the data of the current year to the data of the previous year in both percentage and dollar amount of increase or decrease?

Selected information about The Staccato Company for the current year and prior year is given below. The current year's income tax percentage (as would be found on a vertical analysis of the income statement for the current year)is

The Stemple Corporation data for the current year: What would a horizontal analysis report with respect to current assets?

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 debt ratio for the current year?