A corporation reports the following year-end balance sheet data. The company's current ratio equals: \[\begin{array} { l r l r } \text { Cash } & \$ 40,000 & \text { Current liabilities } & \$ 75,000 \\ \text { Accounts receivable } & 55,000 & \text { Lore-tern liabilities } & 35,000 \\ \text { Irventory } & 60,000 & \text { Corrnon stock } & 100,000 \\ \text { Equiprnent} &\underline{ 145,000 }& \text { Retained earnings } &\underline{ 90,000} \\ \text { Total assets } &\underline{ \$ 300,000} & \text { Total liabilities ard equity } & \underline{\$ 300,000} \end{array}\]

A) 0.58 B) 1.27 C) 2.07 D) 0.37 E) 0.63 A) 0.58 B) 1.27 C) 2.07 D) 0.37 E) 0.63

Refer to the following selected financial information from Shakley's Incorporated. Compute the company's return on total assets for Year 2. \[\begin{array} { | l | r | r | } \hline & \text { Year 2 } & \text { Year 1 } \\ \hline \text { Net sales } & \$ 478,500 & \$ 426,250 \\ \hline \text { Cost of goods sold } & 276,300 & 250,120 \\ \hline \text { Interest expense } & 9,700 & 10,700 \\ \hline \text { Net income before tax } & 67,250 & 52,680 \\ \hline \text { Net income after tax } & 46,050 & 39,900 \\ \hline \text { Total assets } & 317,100 & 288,000 \\ \hline\text { Total liabilities } & 181,400 & 167,300 \\ \hline \text { Total equity } & 135,700 & 120,700 \\ \hline \end{array}\]

A) 9.6%. B) 15.2%. C) 2.6%. D) 22.2%. E) 14.5%. A) 9.6%. B) 15.2%. C) 2.6%. D) 22.2%. E) 14.5%.

Refer to the following selected financial information from Graphics, Inc. Compute the company's times interest earned. \[\begin{array} { | l | l | } \hline \\ \hline \text { Interest expense } & \$ 9,100 \\ \hline \text { Income tax expense } & 22,700 \\ \hline \text { Net income after tax } & 56,500 \\ \hline \end{array}\]

A) 6.2. B) 2.5. C) 8.7. D) 9.7. E) 3.7. A) 6.2. B) 2.5. C) 8.7. D) 9.7. E) 3.7.

Use the following selected information from Wheeler, LLC to determine the 2017 and 2016 trend percentages for net sales using 2016 as the base. \[\begin{array} { | l | r | r |} \hline & { 2017 } & { \mathbf { 2 0 1 6 } } \\ \hline \text { Net sales } & \$ 276,200 & \$ 231,400 \\ \hline \text { Cost of goods sold } & 151,900 & 129,590 \\ \hline \text { Operating expenses } & 55,240 & 53,240 \\ \hline \text { Net earnings } & 27,82 \mathrm {~d} & 19,820 \\ \hline \end{array}\]

A) 36.4% for 2017 and 41.1% for 2016. B) 55.0% for 2017 and 56.0% for 2016. C) 119.4% for 2017 and 100.0% for 2016. D) 117.2% for 2017 and 100.0% for 2016. E) 65.1% for 2017 and 64.6% for 2016. A) 36.4% for 2017 and 41.1% for 2016. B) 55.0% for 2017 and 56.0% for 2016. C) 119.4% for 2017 and 100.0% for 2016. D) 117.2% for 2017 and 100.0% for 2016. E) 65.1% for 2017 and 64.6% for 2016.

Comparative calendar-year financial data for a company are shown below. Calculate the following ratios for the company for 2018: (a) accounts receivable turnover (b) day's sales uncollected (c) inventory turnover (d) days' sales in inventory \[\begin{array} { | l | l | l | } \hline \text { Sales } & \frac { 2018 } { } & \frac { 2017 } { } \\ \cline { 2 - 3 } & \$ 200,000 & \$ 607,500 \\ \hline \text { Cost of goods sold } & 450,000 & 382,700 \\ \hline \text { Operating expenses } & 168,500 & 134,900 \\ \hline \text { Net income } & 51,200 & 51,700 \\ \hline & & \\ \hline & \text { December 31, } & \text { December 31, } \\ \hline & 2018 & 2017 \\ \hline \text { Accounts receivable (net) } & \$ 1157,500 & \$ 162,500 \\ \hline \text { Inventory } & 139,500 & 110,500 \\ \hline \text { Total assets } & 1,012,500 & 944,800 \\ \hline \end{array}\]

\[\begin{array} { | l | l | } \hline \t

Refer to the following selected financial information from Marston Company. Compute the company's accounts receivable turnover for Year 2. \[\begin{array} { | l | r | r | } \hline & \text { Year 2 } & { \text { Year 1 } } \\ \hline \text { Accounts receivable, net } & 86,500 & 82,750 \\ \hline \text { Net sales } & 723,000 & 693,000 \\ \hline \end{array}\]

A) 8.36. B) 8.37. C) 4.78. D) 8.59. E) 8.54. A) 8.36. B) 8.37. C) 4.78. D) 8.59. E) 8.54.

Exam 13: Analysis of Financial Statements

A corporation reports the following year-end balance sheet data. The company's current ratio equals: Cash \ 40,000 Current liabilities \ 75,000 Accounts receivable 55,000 Lore-tern liabilities 35,000 Irventory 60,000 Corrnon stock 100,000 Equiprnent Retained earnings Total assets Total liabilities ard equity

(Multiple Choice)

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Question 81

The greater the times interest earned ratio, the greater the risk a company is exposed to.

(True/False)

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Question 82

Comparative financial statements are reports that show financial amounts in side by side columns on a single statement for analysis purposes.

(True/False)

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Question 83

Refer to the following selected financial information from Shakley's Incorporated. Compute the company's return on total assets for Year 2. Year 2 Year 1 Net sales \ 478,500 \ 426,250 Cost of goods sold 276,300 250,120 Interest expense 9,700 10,700 Net income before tax 67,250 52,680 Net income after tax 46,050 39,900 Total assets 317,100 288,000 Total liabilities 181,400 167,300 Total equity 135,700 120,700

(Multiple Choice)

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Question 84

A company's board of directors analyzes financial statements to assess future company prospects for making operating decisions.

(True/False)

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Question 85

The standards for comparisons when interpreting measures from financial statement analysis include (1) , (2) , (3) , and (4) .

(Essay)

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Question 86

External users of accounting information make the strategic and operating decisions of a company.

(True/False)

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Question 87

Refer to the following selected financial information from Graphics, Inc. Compute the company's times interest earned. Interest expense \ 9,100 Income tax expense 22,700 Net income after tax 56,500

(Multiple Choice)

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Question 88

Use the following selected information from Wheeler, LLC to determine the 2017 and 2016 trend percentages for net sales using 2016 as the base. 2017 Net sales \ 276,200 \ 231,400 Cost of goods sold 151,900 129,590 Operating expenses 55,240 53,240 Net earnings 27,82 19,820

(Multiple Choice)

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Question 89

The current ratio is calculated as current liabilities divided by current assets.

(True/False)

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Question 90

In order to be classified as an extraordinary gain or loss, the item must be both (1) and (2) .

(Essay)

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Question 91

In horizontal analysis the percent change is computed by:

(Multiple Choice)

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Question 92

Powers Company reported Net sales of $1,200,000 and average Accounts Receivable, net of $78,500. The accounts receivable turnover ratio is:

(Multiple Choice)

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Question 93

A company reports basic earnings per share of $3.50, cash dividends per share of $0.75, and a market price per share of $64.75. The company's dividend yield equals 21.4%.

(True/False)

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(85)

Question 94

Comparative calendar-year financial data for a company are shown below. Calculate the following ratios for the company for 2018: (a) accounts receivable turnover (b) day's sales uncollected (c) inventory turnover (d) days' sales in inventory Sales \cline 2-3 \ 200,000 \ 607,500 Cost of goods sold 450,000 382,700 Operating expenses 168,500 134,900 Net income 51,200 51,700 December 31, December 31, 2018 2017 Accounts receivable (net) \ 1157,500 \ 162,500 Inventory 139,500 110,500 Total assets 1,012,500 944,800

(Essay)

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Question 95

Horizontal analysis is the comparison of a company's financial condition and performance to a base amount.

(True/False)

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Question 96

Explain the purpose of financial statement analysis for both external and internal users.

(Essay)

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Question 97

Refer to the following selected financial information from Marston Company. Compute the company's accounts receivable turnover for Year 2. Year 2 Year 1 Accounts receivable, net 86,500 82,750 Net sales 723,000 693,000

(Multiple Choice)

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Question 98

Market prospects are the ability to generate positive market expectations.

(True/False)

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Question 99

Three of the most common tools of financial analysis include horizontal analysis, vertical analysis, and ratio analysis.

(True/False)

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Question 100

The greater the times interest earned ratio, the greater the risk a company is exposed to.

Comparative financial statements are reports that show financial amounts in side by side columns on a single statement for analysis purposes.

A company's board of directors analyzes financial statements to assess future company prospects for making operating decisions.

The standards for comparisons when interpreting measures from financial statement analysis include (1) , (2) , (3) , and (4) .

External users of accounting information make the strategic and operating decisions of a company.

Refer to the following selected financial information from Graphics, Inc. Compute the company's times interest earned. Interest expense \ 9,100 Income tax expense 22,700 Net income after tax 56,500

Use the following selected information from Wheeler, LLC to determine the 2017 and 2016 trend percentages for net sales using 2016 as the base. 2017 Net sales \ 276,200 \ 231,400 Cost of goods sold 151,900 129,590 Operating expenses 55,240 53,240 Net earnings 27,82 19,820

The current ratio is calculated as current liabilities divided by current assets.

In order to be classified as an extraordinary gain or loss, the item must be both (1) and (2) .

In horizontal analysis the percent change is computed by:

Powers Company reported Net sales of $1,200,000 and average Accounts Receivable, net of $78,500. The accounts receivable turnover ratio is:

A company reports basic earnings per share of $3.50, cash dividends per share of $0.75, and a market price per share of $64.75. The company's dividend yield equals 21.4%.

Horizontal analysis is the comparison of a company's financial condition and performance to a base amount.

Explain the purpose of financial statement analysis for both external and internal users.

Refer to the following selected financial information from Marston Company. Compute the company's accounts receivable turnover for Year 2. Year 2 Year 1 Accounts receivable, net 86,500 82,750 Net sales 723,000 693,000

Market prospects are the ability to generate positive market expectations.

Three of the most common tools of financial analysis include horizontal analysis, vertical analysis, and ratio analysis.

Managerial Accounting Concepts and Principles

Job Order Costing and Analysis

Process Costing and Analysis

Activity Based Costing and Analysis

Cost Behavior Cost-Volume-Profit Analysis

Variable Costing and Analysis

Master Budgets and Performance Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Reporting Cash Flows

Time Value of Money

Analyzing for Business Transactions

Partnership Accounting

Filters

Exam 13: Analysis of Financial Statements

The greater the times interest earned ratio, the greater the risk a company is exposed to.

Comparative financial statements are reports that show financial amounts in side by side columns on a single statement for analysis purposes.

A company's board of directors analyzes financial statements to assess future company prospects for making operating decisions.

The standards for comparisons when interpreting measures from financial statement analysis include (1) ________, (2) ________, (3) ________, and (4) ________.

External users of accounting information make the strategic and operating decisions of a company.

Refer to the following selected financial information from Graphics, Inc. Compute the company's times interest earned. Interest expense \ 9,100 Income tax expense 22,700 Net income after tax 56,500

Use the following selected information from Wheeler, LLC to determine the 2017 and 2016 trend percentages for net sales using 2016 as the base. 2017 Net sales \ 276,200 \ 231,400 Cost of goods sold 151,900 129,590 Operating expenses 55,240 53,240 Net earnings 27,82 19,820

The current ratio is calculated as current liabilities divided by current assets.

In order to be classified as an extraordinary gain or loss, the item must be both (1) ________ and (2) ________.

In horizontal analysis the percent change is computed by:

Powers Company reported Net sales of $1,200,000 and average Accounts Receivable, net of $78,500. The accounts receivable turnover ratio is:

A company reports basic earnings per share of $3.50, cash dividends per share of $0.75, and a market price per share of $64.75. The company's dividend yield equals 21.4%.

Horizontal analysis is the comparison of a company's financial condition and performance to a base amount.

Explain the purpose of financial statement analysis for both external and internal users.

Refer to the following selected financial information from Marston Company. Compute the company's accounts receivable turnover for Year 2. Year 2 Year 1 Accounts receivable, net 86,500 82,750 Net sales 723,000 693,000

Market prospects are the ability to generate positive market expectations.

Three of the most common tools of financial analysis include horizontal analysis, vertical analysis, and ratio analysis.

Managerial Accounting Concepts and Principles

Job Order Costing and Analysis

Process Costing and Analysis

Activity Based Costing and Analysis

Cost Behavior Cost-Volume-Profit Analysis

Variable Costing and Analysis

Master Budgets and Performance Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Reporting Cash Flows

Time Value of Money

Analyzing for Business Transactions

Partnership Accounting

Filters

The standards for comparisons when interpreting measures from financial statement analysis include (1) , (2) , (3) , and (4) .

In order to be classified as an extraordinary gain or loss, the item must be both (1) and (2) .