Louie Corporation has provided the following data: $\begin{array}{lrr}& \text { year 2}& \text {Year 1 }\\ \text { Accounts receivable ........ } & \$ 269,000 & \$ 290,000 \\ \text { Inventory .................... } & \$ 190,000 & \$ 160,000 \\ \text { Sales, on account.......... } & \$ 1,340,000 & \\ \text { Cost of goods sold ......... } & \$ 860,000 &\\ \end{array}$ The company's operating cycle for Year 2 is closest to:

A) 81.0 days B) 150.5 days C) 79.2 days D) 9.7 days A) 81.0 days B) 150.5 days C) 79.2 days D) 9.7 days

Ribaudo Corporation has provided the following financial data from its balance sheet and income statement: $\begin{array}{lrr}&\text { Year 2 } & \text { Year 1 } \\ \text { Cash}&\$ 74,000 & \$ 130,000 \\ \text { Accounts receivable, net}&\$ 255,000 & \$ 240,000 \\ \text {Inventory. }&\$ 173,000 & \$ 180,000 \\ \text {Total current assets }&\$ 564,000 & \$ 610,000 \\ \text {Total assets. }&\$ 1,350,000 & \$ 1,330,000 \\ \text {Accounts payable }&\$ 170,000 & \$ 160,000 \\ \text {Total liabilities }&\$ 633,000 & \$ 620,000 \\ \text {Total stockholders' equity. }&\$ 717,000 & \$ 710,000 \\ \text {Sales (all on account) }&\$ 1,290,000 & \\ \text {Cost of goods sold }&\$ 700,000 & \end{array}$ -The company's inventory turnover for Year 2 is closest to:

A) 3.89 B) 1.04 C) 3.97 D) 4.05 A) 3.89 B) 1.04 C) 3.97 D) 4.05

Sapien Corporation has provided the following data for the most recent year: $\begin{array}{lr} \text {Sales }&\$1,340,000\\ \text {Gross margin. }&\$460,000\\ \text {Net operating income. }&\$54,846\\ \text {Net income before taxes }&\$41,846\\ \text {Net income. }&\$27,200\\ \end{array}$ The company's gross margin percentage is closest to:

A) 52.3% B) 1691.2% C) 5.9% D) 34.3% A) 52.3% B) 1691.2% C) 5.9% D) 34.3%

Exam 15: Financial Statement Analysis

Louie Corporation has provided the following data: year 2 Year 1 Accounts receivable ........ \ 269,000 \ 290,000 Inventory .................... \ 190,000 \ 160,000 Sales, on account.......... \ 1,340,000 Cost of goods sold ......... \ 860,000 The company's operating cycle for Year 2 is closest to:

(Multiple Choice)

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Question 21

Tobia Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $6,300.The market price of common stock at the end of Year 2 was $1.78 per share. Required: a.What is the company's times interest earned ratio for Year 2? b.What is the company's debt-to-equity ratio at the end of Year 2? c.What is the company's equity multiplier at the end of Year 2? d.What is the company's earnings per share for Year 2? e.What is the company's price-earnings ratio for Year 2? f.What is the company's dividend payout ratio for Year 2? g.What is the company's dividend yield ratio for Year 2? h.What is the company's book value per share at the end of Year 2?

(Essay)

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Question 22

Excerpts from Sydner Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,390 and the cost of goods sold was $900. -The current ratio at the end of Year 2 is closest to:

(Multiple Choice)

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Question 23

Freiman Corporation's most recent balance sheet and income statement appear below: $Freiman Corporation's most recent balance sheet and income statement appear below: Income Statement For the Year Ended December 31, Year 2 (in thousands of dollars) \begin{array}{lr} \text { Sales (all on account)}&\$ 1,310 \\ \text {Cost of goods sold. }&780 \\ \text {Gross margin. }&530 \\ \text {Selling and administrative expense }&359 \\ \text {Net operating income }&171 \\ \text {Interest expense }& 35 \\ \text {Net income before taxes }&136 \\ \text { income taxes (30\%)}& 41 \\ \text {Net income }& 95 \end{array} -The inventory turnover for Year 2 is closest to:$ Income Statement For the Year Ended December 31, Year 2 (in thousands of dollars) Sales (all on account) \ 1,310 Cost of goods sold. 780 Gross margin. 530 Selling and administrative expense 359 Net operating income 171 Interest expense 35 Net income before taxes 136 income taxes (30\%) 41 Net income 95 -The inventory turnover for Year 2 is closest to:

(Multiple Choice)

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Question 24

Financial statements for Narstad Corporation appear below: -Narstad Corporation's times interest earned ratio for Year 2 was closest to:

(Multiple Choice)

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Question 25

A company's current ratio is greater than 1.Purchasing raw materials on credit would:

(Multiple Choice)

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Question 26

The following information relates to Conejo Corporation for last year: What is Conejo's price-earnings ratio for last year?

(Multiple Choice)

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Question 27

When a company sells used equipment for a loss,the net profit margin percentage is unaffected.

(True/False)

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Question 28

Buying inventory in large lots to take advantage of quantity discounts can be responsible for a high inventory turnover ratio.

(True/False)

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Question 29

Gehlhausen Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $5,600.The market price of common stock at the end of Year 2 was $5.60 per share. Required: a.What is the company's net profit margin percentage for Year 2? b.What is the company's gross margin percentage for Year 2? c.What is the company's return on total assets for Year 2? d.What is the company's return on equity for Year 2?

(Essay)

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Question 30

Hagle Corporation has provided the following financial data: Required: a.What is the company's accounts receivable turnover for Year 2? b.What is the company's average collection period for Year 2? c.What is the company's inventory turnover for Year 2? d.What is the company's average sale period for Year 2? e.What is the company's operating cycle for Year 2? f.What is the company's total asset turnover for Year 2?

(Essay)

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Question 31

Which of the following actions would improve a current ratio of 0.8?

(Multiple Choice)

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Question 32

All other things the same,if the company purchases equipment on credit,this transaction would have no impact on the company's book value per share.

(True/False)

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Question 33

Ribaudo Corporation has provided the following financial data from its balance sheet and income statement: Year 2 Year 1 Cash \ 74,000 \ 130,000 Accounts receivable, net \ 255,000 \ 240,000 Inventory. \ 173,000 \ 180,000 Total current assets \ 564,000 \ 610,000 Total assets. \ 1,350,000 \ 1,330,000 Accounts payable \ 170,000 \ 160,000 Total liabilities \ 633,000 \ 620,000 Total stockholders' equity. \ 717,000 \ 710,000 Sales (all on account) \ 1,290,000 Cost of goods sold \ 700,000 -The company's inventory turnover for Year 2 is closest to:

(Multiple Choice)

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Question 34

Harris Corporation,a retailer,had cost of goods sold of $290,000 last year.The beginning inventory balance was $26,000 and the ending inventory balance was $24,000.The corporation's inventory turnover was closest to:

(Multiple Choice)

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Question 35

Sapien Corporation has provided the following data for the most recent year: Sales \1 ,340,000 Gross margin. \4 60,000 Net operating income. \5 4,846 Net income before taxes \4 1,846 Net income. \2 7,200 The company's gross margin percentage is closest to:

(Multiple Choice)

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Question 36

Natcher Corporation's accounts receivable at the end of Year 2 was $126,000 and its accounts receivable at the end of Year 1 was $130,000.The company's inventory at the end of Year 2 was $127,000 and its inventory at the end of Year 1 was $120,000.Sales,all on account,amounted to $1,380,000 in Year 2.Cost of goods sold amounted to $800,000 in Year 2.The company's operating cycle for Year 2 is closest to:

(Multiple Choice)

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(74)

Question 37

Excerpts from Sydner Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,390 and the cost of goods sold was $900. -The working capital at the end of Year 2 is:

(Multiple Choice)

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(72)

Question 38

Irawaddy Company,a retailer,had cost of goods sold of $230,000 last year.The beginning inventory balance was $24,000 and the ending inventory balance was $22,000.The company's average sale period was closest to:

(Multiple Choice)

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Question 39

Fongeallaz Corporation's income statement for Year 2 appears below: The company's total stockholders' equity at the end of Year 2 amounted to $841,000 and at the end of Year 1 to $810,000.The company's return on equity for Year 2 is closest to:

(Multiple Choice)

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(79)

Question 40

Showing 21 - 40 of 289

Exam 15: Financial Statement Analysis

Louie Corporation has provided the following data: year 2 Year 1 Accounts receivable ........ \ 269,000 \ 290,000 Inventory .................... \ 190,000 \ 160,000 Sales, on account.......... \ 1,340,000 Cost of goods sold ......... \ 860,000 The company's operating cycle for Year 2 is closest to:

Excerpts from Sydner Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,390 and the cost of goods sold was $900. -The current ratio at the end of Year 2 is closest to:

Financial statements for Narstad Corporation appear below: -Narstad Corporation's times interest earned ratio for Year 2 was closest to:

A company's current ratio is greater than 1.Purchasing raw materials on credit would:

The following information relates to Conejo Corporation for last year: What is Conejo's price-earnings ratio for last year?

When a company sells used equipment for a loss,the net profit margin percentage is unaffected.

Buying inventory in large lots to take advantage of quantity discounts can be responsible for a high inventory turnover ratio.

Which of the following actions would improve a current ratio of 0.8?

All other things the same,if the company purchases equipment on credit,this transaction would have no impact on the company's book value per share.

Harris Corporation,a retailer,had cost of goods sold of $290,000 last year.The beginning inventory balance was $26,000 and the ending inventory balance was $24,000.The corporation's inventory turnover was closest to:

Sapien Corporation has provided the following data for the most recent year: Sales \1 ,340,000 Gross margin. \4 60,000 Net operating income. \5 4,846 Net income before taxes \4 1,846 Net income. \2 7,200 The company's gross margin percentage is closest to:

Excerpts from Sydner Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,390 and the cost of goods sold was $900. -The working capital at the end of Year 2 is:

Irawaddy Company,a retailer,had cost of goods sold of $230,000 last year.The beginning inventory balance was $24,000 and the ending inventory balance was $22,000.The company's average sale period was closest to:

Fongeallaz Corporation's income statement for Year 2 appears below: The company's total stockholders' equity at the end of Year 2 amounted to $841,000 and at the end of Year 1 to $810,000.The company's return on equity for Year 2 is closest to:

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Job-Order Costing: Calculating Unit Production Costs

Job-Order Costing: Cost Flows and External Reporting

Process Costing

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

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Flexible Budgets and Performance Analysis

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Statement of Cash Flows

Cost of Quality

Activity-Based Absorption Costing

The Predetermined Overhead Rate and Capacity

Job-Order Costing: a Microsoft Excel-Based Approach

Fifo Method

Service Department Allocations

Analyzing Mixed Costs

Time-Driven Activity-Based Costing: a Microsoft Excel-Based Approach

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Standard Cost Systems: a Financial Reporting Perspective Using Microsoft Excel

Transfer Pricing

Service Department Charges

Pricing Decisions

The Concept of Present Value

Income Taxes and the Present Value Method

the Direct Method of Determining the Net Cash Provided by Operating Activities

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