Exam 13: How Well Am I Doing Statement of Cash Flows

Crasler Company's net income last year was $100,000.The company paid preferred dividends of $20,000 and its average common shareholders' equity was $580,000.The company's return on common shareholders' equity for the year was closest to:

Orantes Company's accounts receivable turnover for 20 × 6 was closest to:

If the market value of a share of stock is greater than its book value,the stock is probably necessarily overpriced.

Stephanie Co.has total assets of $170,000 of which $110,000 are not current assets.Working capital is $50,000 and long term-liabilities total $30,000.The company's debt-to-equity ratio is closest to:

If a firm has a high current ratio but a low acid-test ratio,one can conclude that:

Dratif Company's working capital is $33,000 and its current liabilities are $80,000.The company's current ratio is closest to:

Marcial Company's average sale period (turnover in days)for 20 × 6 was closest to:

Jimbob Co.is considering ways to finance a planned business expansion after which the company will have $150,000 in earnings before interest and income taxes.The income tax rate is 30%.One alternative being considered is to issue new common shares.If this alternative is chosen the company's common shareholders' equity is expected to average $1,000,000.What will be the return on common shareholders' equity if this alternative is taken?

If Dawson Corporation's common stock has a price-earnings ratio of eight,the market price per share (to the nearest dollar)would be:

For 20 × 9,the net operating income as a percentage of sales was:

A comparative common-size balance sheet will help to highlight significant changes in the components of the balance sheet from year to year.

Analysing the changes from the end of 20 × 5 to the end of 20 × 6,which of the following statements is correct about the protection provided to creditors by the company's financial position?

Calculate the dividend payout ratio for 20 × 4

What will happen to the ratios below if CPZ Enterprises uses cash to pay 50% of its accounts payable?

The times interest earned ratio of McHugh Company is 4.5 times.The interest expense for the year was $20,000,and the company's tax rate is 40%.The company's net income is:

Earnings per share of common stock will immediately increase as a result of:

Financial statements for Rarity Company appear below:

A high debt-to-equity ratio will always be a concern to common shareholders.

The inventory turnover ratio is equal to the average inventory balance divided by the cost of goods sold.

Analysing the changes from the end of 20 × 5 to the end of 20 × 6,which of the following statements is correct about the protection provided to creditors by the company's financial position?