Exam 14: Financial Statement Analysis

Financial statements for Orange Company appear below: Total dividends during Year 2 were $156,000, of which $18,000 were preferred dividends. The market price of a share of common stock on December 31, Year 2 was $100. -Orange Company's current ratio at the end of Year 2 was closest to which of the following?

The Dawson Corporation projects the following for the upcoming year: -What is the expected dividend per common share?

Last year,Allen Company's average collection period for accounts receivable was 40 days; this year,it increased to 60 days.Which of the following would most likely account for this change?

Arget Company's net income last year was $600,000.The company had 150,000 common shares and 60,000 preferred shares.There was no change in the number of common or preferred shares outstanding during the year.The company declared and paid dividends last year of $1.10 per common share and $0.60 per preferred share.The earnings per common share was closest to which of the following?

Arlberg Company's net income last year was $250,000.The company had 150,000 common shares and 80,000 preferred shares.There was no change in the number of common or preferred shares outstanding during the year.The company declared and paid dividends last year of $1.30 per common share and $1.40 per preferred share.The earnings per common share was closest to which of the following?

Ben Company has the following data for the year just ended: Cash \ 42,000 Accounts Receivable \ 28,000 Inventory \ 35,000 Current Ratio 2.4 to 1 Acid-Test Ratio 1.6 to 1 What were Ben Company's current liabilities?

Financial statements for Marcell Company appear below: -Marcell Company's average sale period (turnover in days)for Year 2 was closest to which of the following?

The Dawson Corporation projects the following for the upcoming year: -If Dawson Corporation's common shares have a price-earnings ratio of eight,what would be the market price per share,rounded to the nearest dollar?

The net accounts receivable for Andante Company were $150,000 at the beginning of the most recent year and $190,000 at the end of the year.If the accounts receivable turnover for the year was 8.5,and 15% of total sales were cash sales,what were the total sales for the year?

Financial statements for Orange Company appear below: Total dividends during Year 2 were $156,000, of which $18,000 were preferred dividends. The market price of a share of common stock on December 31, Year 2 was $100. -Orange Company's earnings per common share for Year 2 was closest to which of the following?

Trend percentages state several years' financial data in terms of a base year.For example,sales for every year would be stated as a percentage of the sales in the base year.

Financial statements for Laroche Company appear below: Shareholders' Equity: Total dividends during Year 2 were $166,000, of which $10,000 were preferred dividends. The market price of a common share on December 31, Year 2 was $150. -Laroche Company's price-earnings ratio on December 31,Year 2 was closest to which of the following?

The following financial data have been taken from the records of CPZ Enterprises. -What is the current ratio for CPZ Enterprises?

Lisa Inc.'s balance sheet appears below: The company's sales for the year were $300,000, its cost of goods sold was $220,000, and its net income was $35,000. All sales were on credit. Dividends paid on preferred shares for the year were $5,000. -Lisa Inc.'s accounts receivable turnover for Year 2 was closest to which of the following?

Common-size statements are particularly useful when comparing data from different companies.

Comparative financial statements for Springville Company for the last two years appear below.The market price of Springville's common shares was $25 per share on December 31,Year 2.During Year 2,dividends of $2,000,000 were paid to preferred shareholders and $10,000,000 to common shareholders.

Financial statements for March Company appear below: -March Company's average collection period (age of receivables)for Year 2 was closest to which of the following?

Financial statements for Marcell Company appear below: -Marcell Company's average collection period (age of receivables)for Year 2 was closest to which of the following?

Financial statements for Marcial Company appear below: -Marcial Company's inventory turnover for Year 2 was closest to which of the following?

Financial statements for Raridan Company appear below: