Question 1

All other things the same,if long-term debt is exchanged for short-term debt,the debt-to-equity ratio will be unchanged.

Accepted Answer

A) True 
 B)False

Question 2

Kearin Corporation has provided the following financial data:
     Dividends on common stock during Year 2 totaled $8,000. The market price of common stock at the end of Year 2 was $2.02 per share.
-The company's return on equity for Year 2 is closest to:

Accepted Answer

A)  71.44% 
B)  4.72% 
C)  2.97% 
D)  1.93% 
A)  71.44% 
B)  4.72% 
C)  2.97% 
D)  1.93%

Question 3

Settles Corporation has provided the following financial data:
     Dividends on common stock during Year 2 totaled $5,400. The market price of common stock at the end of Year 2 was $5.89 per share.
-The company's dividend payout ratio is closest to:

Accepted Answer

A)  1.3% 
B)  1.7% 
C)  17.1% 
D)  26.3% 
A)  1.3% 
B)  1.7% 
C)  17.1% 
D)  26.3%

Question 4

Fayer Corporation has provided the following financial data:
     Dividends on common stock during Year 2 totaled $4,500. The market price of common stock at the end of Year 2 was $10.88 per share.
-The company's equity multiplier at the end of Year 2 is closest to:

Accepted Answer

A)  0.69 
B)  2.23 
C)  0.45 
D)  1.45 
A)  0.69 
B)  2.23 
C)  0.45 
D)  1.45

Question 5

Excerpts from Colter Corporation's most recent balance sheet appear below:
   Sales on account in Year 2 amounted to $1,210 and the cost of goods sold was $720.
-The accounts receivable turnover for Year 2 is closest to:

Accepted Answer

A)  1.10 
B)  0.91 
C)  11.52 
D)  12.10 
A)  1.10 
B)  0.91 
C)  11.52 
D)  12.10

Question 6

Marovich Corporation has provided the following financial data:
     Dividends on common stock during Year 2 totaled $4,000.The market price of common stock at the end of Year 2 was $6.41 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?
e.What is the company's earnings per share for Year 2?
f.What is the company's price-earnings ratio for Year 2?
g.What is the company's dividend payout ratio for Year 2?
h.What is the company's dividend yield ratio for Year 2?
i.What is the company's book value per share at the end of Year 2?

Accepted Answer

a.Net profit margin percentage = Net inc

Question 7

The formula for the times interest earned ratio is:
 Times interest earned = Earnings before interest expense and income taxes ÷ Interest expense.

Accepted Answer

A) True 
 B)False

Question 8

The formula for total asset turnover is:
 Total asset turnover = Total assets ÷ Total stockholders' equity.

Accepted Answer

A) True 
 B)False

Question 9

Spincic Corporation has provided the following data:
  The market price of common stock at the end of Year 2 was $4.13 per share.The company's price-earnings ratio for Year 2 is closest to:

Accepted Answer

A)  0.52 
B)  8.10 
C)  6.16 
D)  12.52 
A)  0.52 
B)  8.10 
C)  6.16 
D)  12.52

Question 10

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 average collection period for Year 2 is closest to:

Accepted Answer

A)  70.1 days 
B)  1.1 days 
C)  72.1 days 
D)  1.0 days 
A)  70.1 days 
B)  1.1 days 
C)  72.1 days 
D)  1.0 days

Question 11

Mayfield Corporation has provided the following financial data:
  
-The company's acid-test (quick)ratio is closest to:

Accepted Answer

A)  1.90 
B)  1.85 
C)  2.65 
D)  1.81 
A)  1.90 
B)  1.85 
C)  2.65 
D)  1.81

Question 12

Last year Javer Corporation had net income of $200,000,income tax expense of $74,000,and interest expense of $20,000.The corporation's times interest earned was closest to:

Accepted Answer

A)  10.0 
B)  11.0 
C)  5.3 
D)  14.7 
A)  10.0 
B)  11.0 
C)  5.3 
D)  14.7

Question 13

Calin Corporation has total current assets of $615,000,total current liabilities of $230,000,total stockholders' equity of $1,183,000,total net plant and equipment of $958,000,total assets of $1,573,000,and total liabilities of $390,000.The company's working capital is:

Accepted Answer

A)  $615,000 
B)  $1,183,000 
C)  $385,000 
D)  $958,000 
A)  $615,000 
B)  $1,183,000 
C)  $385,000 
D)  $958,000

Question 14

Settles Corporation has provided the following financial data:
     Dividends on common stock during Year 2 totaled $5,400. The market price of common stock at the end of Year 2 was $5.89 per share.
-The company's earnings per share is closest to:

Accepted Answer

A)  $7.37 per share 
B)  $0.45 per share 
C)  $0.30 per share 
D)  $0.19 per share 
A)  $7.37 per share 
B)  $0.45 per share 
C)  $0.30 per share 
D)  $0.19 per share

Question 15

Cutsinger Corporation has provided the following data from its most recent income statement:
$\begin{array}{lr}
\text { Net operating income }&\$55,000\
\text {interest expense. }&\$43,000\
\text { Net income before taxes. }&\$12,000\
\text { income taxes  }&\$4,000\
\text {Net income. }&\$8,000\
\end{array}$
 The times interest earned ratio is closest to:

Accepted Answer

A)  1.83 
B)  0.28 
C)  1.28 
D)  0.19 
A)  1.83 
B)  0.28 
C)  1.28 
D)  0.19

Question 16

Tweedle Corporation's most recent balance sheet and income statement appear below:
    
-The debt-to-equity ratio at the end of Year 2 is closest to:

Accepted Answer

A)  0.43 
B)  0.24 
C)  0.17 
D)  0.54 
A)  0.43 
B)  0.24 
C)  0.17 
D)  0.54

Question 17

Issuing common stock will decrease a company's financial leverage.

Accepted Answer

A) True 
 B)False

Question 18

Windham Corporation has current assets of $400,000 and current liabilities of $500,000.Windham Corporation's current ratio would be increased by:

Accepted Answer

A)  the purchase of $100,000 of inventory on account. 
B)  the payment of $100,000 of accounts payable. 
C)  the collection of $100,000 of accounts receivable. 
D)  refinancing a $100,000 long-term loan with short-term debt. 
A)  the purchase of $100,000 of inventory on account. 
B)  the payment of $100,000 of accounts payable. 
C)  the collection of $100,000 of accounts receivable. 
D)  refinancing a $100,000 long-term loan with short-term debt.

Question 19

Doonan Corporation has provided the following financial data from its balance sheet and income statement:
   The market price of common stock at the end of Year 2 was $4.79 per share.
-The company's return on equity for Year 2 is closest to:

Accepted Answer

A)  5.60% 
B)  4.09% 
C)  2.66% 
D)  68.28% 
A)  5.60% 
B)  4.09% 
C)  2.66% 
D)  68.28%

Question 20

Kestner 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?

Accepted Answer

a.Accounts receivable turnover = Sales o

Exam 15: Financial Statement Analysis

All other things the same,if long-term debt is exchanged for short-term debt,the debt-to-equity ratio will be unchanged.

Kearin Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $8,000. The market price of common stock at the end of Year 2 was $2.02 per share. -The company's return on equity for Year 2 is closest to:

Settles Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $5,400. The market price of common stock at the end of Year 2 was $5.89 per share. -The company's dividend payout ratio is closest to:

Fayer Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $4,500. The market price of common stock at the end of Year 2 was $10.88 per share. -The company's equity multiplier at the end of Year 2 is closest to:

Excerpts from Colter Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,210 and the cost of goods sold was $720. -The accounts receivable turnover for Year 2 is closest to:

The formula for the times interest earned ratio is: Times interest earned = Earnings before interest expense and income taxes ÷ Interest expense.

The formula for total asset turnover is: Total asset turnover = Total assets ÷ Total stockholders' equity.

Spincic Corporation has provided the following data: The market price of common stock at the end of Year 2 was $4.13 per share.The company's price-earnings ratio for Year 2 is closest to:

Mayfield Corporation has provided the following financial data: -The company's acid-test (quick)ratio is closest to:

Last year Javer Corporation had net income of $200,000,income tax expense of $74,000,and interest expense of $20,000.The corporation's times interest earned was closest to:

Calin Corporation has total current assets of $615,000,total current liabilities of $230,000,total stockholders' equity of $1,183,000,total net plant and equipment of $958,000,total assets of $1,573,000,and total liabilities of $390,000.The company's working capital is:

Settles Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $5,400. The market price of common stock at the end of Year 2 was $5.89 per share. -The company's earnings per share is closest to:

Cutsinger Corporation has provided the following data from its most recent income statement: Net operating income \5 5,000 interest expense. \4 3,000 Net income before taxes. \1 2,000 income taxes \4 ,000 Net income. \8 ,000 The times interest earned ratio is closest to:

Tweedle Corporation's most recent balance sheet and income statement appear below: -The debt-to-equity ratio at the end of Year 2 is closest to:

Issuing common stock will decrease a company's financial leverage.

Windham Corporation has current assets of $400,000 and current liabilities of $500,000.Windham Corporation's current ratio would be increased by:

Doonan Corporation has provided the following financial data from its balance sheet and income statement: The market price of common stock at the end of Year 2 was $4.79 per share. -The company's return on equity for Year 2 is closest to:

Managerial Accounting and Cost Concepts

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

Super-Variable Costing

Master Budgeting

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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