Walkers World Company gathered the following information for 2010: \[\begin{array} { l r } \text { Total sales revenue ( } 65 \% \text { on credit) } & \$ 432,000 \\ \text { Cost of goods sold } & 231,000 \\ \text { Sales returns and allowances (on credit) } & 44,000 \\ \text { Accounts receivable at end of } 2010 ( \$ 30,000 & 100,000 \\ \text { increase during } 2010 ) & \\ \text { Allowance for doubtful accounts: } & \\ \text { Beginning of } 2010 & 7,000 \\ \text { End of } 2010 & 28,000 \\ \text { Merchandise inventory at end of } 2010 ( \$ 10,000 & \\ \text { decrease during } 2010 ) & \end{array}\] Assume 365 days in the year. Calculate each of the following ratios: A.Receivable turnover ratio B.Average number of days to collect C.Inventory turnover ratio D.Average number of days' supply of inventory

To calculate the ratios requested, we ne

Potaw Company reported the following data at the end of 2010: \[\begin{array} { l r } \text { Sales revenue } ( 75 \% \text { on credit) } & \$ 300,000 \\ \text { Expenses ( } 26 \% \text { on credit) } & 60,000 \\ \text { Accounts receivable, net at December } 31,2010 \text { (a decrease } & \\ \text { of } \$ 4,000 \text { during } 2010 ) & 8,000 \\ \text { Total assets } & 200,000 \\ \text { Stockholders' equity } & 150,000 \end{array}\] What was the accounts receivable turnover ratio?

A) 30.0 B) 37.5 C) 36.5 D) 22.5 A) 30.0 B) 37.5 C) 36.5 D) 22.5

Exam 14: Analyzing Financial Statements

At the end of 2010,Jared Corporation reported a return on assets of 16%; net income of $42,000; average total assets of $365,000,and average total liabilities of $165,000.What was Jared's financial leverage percentage?

(Short Answer)

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Question 81

Main Street Company paid out $2.30 in dividends per share and had earnings per share of $5.00 during 2010.The market price of the stock on December 31,2010 was $21.00 per share.There were 15,000 shares of stock outstanding for the entire year.What was the dividend yield as of December 31,2010?

(Multiple Choice)

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Question 82

Which of the following is not a measure of solvency?

(Multiple Choice)

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Question 83

Which of the following transactions decreases earnings per share?

(Multiple Choice)

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Question 84

Dividend yield is calculated by dividing dividends per share by earnings per share and measures the current dividend return to investors.

(True/False)

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Question 85

Walkers World Company gathered the following information for 2010: Total sales revenue ( 65\% on credit) \ 432,000 Cost of goods sold 231,000 Sales returns and allowances (on credit) 44,000 Accounts receivable at end of 2010(\ 30,000 100,000 increase during 2010) Allowance for doubtful accounts: Beginning of 2010 7,000 End of 2010 28,000 Merchandise inventory at end of 2010(\ 10,000 decrease during 2010) Assume 365 days in the year. Calculate each of the following ratios: A.Receivable turnover ratio B.Average number of days to collect C.Inventory turnover ratio D.Average number of days' supply of inventory

(Short Answer)

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Question 86

The 2010 financial statements of Companies Y and Z showed the following: Net sales revenue Profit margin Total average assets Financial leverage percentage Interest expense (net of tax) \ 150,000 \ 200,000 6\% 5\% \ 40,000 \ 80,000 +4\% +3\% \ 1,000 \ 800 Part A: For each company,calculate the items listed in the following tabulation. $The 2010 financial statements of Companies Y and Z showed the following: \begin{array}{l} \begin{array} { l } \underline { \text { Item } } \\ \text { Net sales revenue } \\ \text { Profit margin }\\ \text { Total average assets }\\ \text { Financial leverage percentage } \\ \text { Interest expense (net of tax) } \end{array} \begin{array} { l } \quad \quad \quad\underline { \text { Company } } \\ \underline{\underline{Y}} & \underline{Z} \\ \$ 150,000 & \$ 200,000 \\ 6 \% & 5 \% \\ \$ 40,000 & \$ 80,000 \\ +4 \% & +3 \% \\ \$ 1,000 & \$ 800 \end{array} \end{array} Part A: For each company,calculate the items listed in the following tabulation. Part B: Assuming both Company Y and Company Z are in the same industry,which company (Y or Z)appears to be the better investment and why?$ Part B: Assuming both Company Y and Company Z are in the same industry,which company (Y or Z)appears to be the better investment and why?

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Question 87

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Which of the following transactions doesn't affect earnings per share?

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Question 88

Compete Corporation reported a quick ratio of 1.75,current assets of $50,000 and a current ratio of 2. Requirements:

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Question 89

The journal entry to record depreciation expense decreases which of the following ratios?

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Question 90

MusicPod's earnings per share ratios were $2.47 and $2.07 respectively for 2011 and 2010.MusicPod's stock was trading at $53.00 and $41.50 per share at the end of 2011 and 2010 respectively.The company paid cash dividends per share of $.85 in 2011 and $.63 in 2010.Total stockholders' equity was $13,572 million and $11,896 million in 2011 and 2010 respectively.The common shares outstanding were approximately 1,782,000 in both 2011 and 2010.What was MusicPod's price/earnings ratio for 2011?

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Question 91

Which of the following ratios is not an indicator of a company's short-term financial strength?

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Question 92

At the end of 2010,Doran Corporation reported net income of $70,000,gross sales revenue of $1,525,000,and sales returns of $125,000.Calculate the profit margin ratio.

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Question 93

Which of the following statements is incorrect?

(Multiple Choice)

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Question 94

Lee Company has provided the following information: Cash flow from operating activities,$240,000; Net income,$204,000; Interest expense,$20,000; Interest cash payments,$10,000; Income tax payments,$140,000; Income tax expense,$136,000. What was Lee's quality of income ratio?

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Question 95

Potaw Company reported the following data at the end of 2010: Sales revenue (75\% on credit) \ 300,000 Expenses ( 26\% on credit) 60,000 Accounts receivable, net at December 31,2010 (a decrease of \ 4,000 during 2010) 8,000 Total assets 200,000 Stockholders' equity 150,000 What was the accounts receivable turnover ratio?

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Question 96

Negative financial leverage occurs when the

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Question 97

Which of the following ratios are not affected by issuing long-term bonds payable in exchange for cash?

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Question 98

Negative financial leverage occurs when a company has more debt than stockholders' equity.

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Question 99

Which ratio reflects the stock market's assessment of a company's future performance?

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Question 100

Showing 81 - 100 of 119

At the end of 2010,Jared Corporation reported a return on assets of 16%; net income of $42,000; average total assets of $365,000,and average total liabilities of $165,000.What was Jared's financial leverage percentage?

Main Street Company paid out $2.30 in dividends per share and had earnings per share of $5.00 during 2010.The market price of the stock on December 31,2010 was $21.00 per share.There were 15,000 shares of stock outstanding for the entire year.What was the dividend yield as of December 31,2010?

Which of the following is not a measure of solvency?

Which of the following transactions decreases earnings per share?

Dividend yield is calculated by dividing dividends per share by earnings per share and measures the current dividend return to investors.

Which of the following transactions doesn't affect earnings per share?

Compete Corporation reported a quick ratio of 1.75,current assets of $50,000 and a current ratio of 2. Requirements:

The journal entry to record depreciation expense decreases which of the following ratios?

Which of the following ratios is not an indicator of a company's short-term financial strength?

At the end of 2010,Doran Corporation reported net income of $70,000,gross sales revenue of $1,525,000,and sales returns of $125,000.Calculate the profit margin ratio.

Which of the following statements is incorrect?

Lee Company has provided the following information: Cash flow from operating activities,$240,000; Net income,$204,000; Interest expense,$20,000; Interest cash payments,$10,000; Income tax payments,$140,000; Income tax expense,$136,000. What was Lee's quality of income ratio?

Negative financial leverage occurs when the

Which of the following ratios are not affected by issuing long-term bonds payable in exchange for cash?

Negative financial leverage occurs when a company has more debt than stockholders' equity.

Which ratio reflects the stock market's assessment of a company's future performance?

Financial Statements and Business Decisions

Investing and Financing Decisions and the Balance Sheet

Operating Decisions and the Income Statement

Adjustments,Financial Statements,and the Quality of Earnings

Communicating and Interpreting Accounting Information

Reporting and Interpreting Sales Revenue, Receivables, and Cash

Reporting and Interpreting Cost of Goods Sold and Inventory

Reporting and Interpreting Property, Plant, and Equipment; Natural Resources; and Intangibles

Reporting and Interpreting Liabilities

Reporting and Interpreting Bonds

Reporting and Interpreting Owners Equity

Reporting and Interpreting Investments in Other Corporations

Statement of Cash Flows

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