Exam 12: Financial Statement Analysis

If current assets were $100,000 in 2013 and $88,000 in 2014,what was the amount of increase or decrease in percentage terms from 2013 to 2014? (Round to the nearest percent. )

A business model describes what a business does,what it sells,and who it sells to.

What is financial analysis?

Net income was $45,000 in 2013 and $60,000 in 2014.The percentage increase or decrease in net income from 2013 to 2014 was:

Cypress Cruises has a cash balance of $80,000;short-term investments of $20,000;net receivables of $60,000;and inventory of $450,000.Current liabilities total $200,000.The quick ratio is:

On the Income Statement,the results of discontinued operations are reported:

Evergreen Industrial reported the following for 2012: What are the dividends per share for Evergreen Industrial(to the nearest cent)?

The 2013 and 2014 balance sheets for Northwest Plumbing showed Cash of $6,500 and $8,000 respectively,Accounts Receivable of $15,000 and $18,000,respectively,Inventory of $12,500 and $9,500,respectively,and Accounts Payable of $5,000 and $8,000,respectively.Its 2014 Income Statement showed Net Sales of $116,000,Cost of Goods Sold of $58,000,and Net Income of $31,000.The cash conversion cycle for 2014 was (round calculations to two decimal places):

The competitive environment of a business describes how a business competes for critical resources.

Illusions,Inc.has net sales of $980,000,net income of $72,000,average current assets of $42,000,average fixed assets of $168,000,and average total assets of $210,000.Illusions,Inc.'s return on assets is:

Most companies want a low inventory turnover ratio.

Comparing your company with a competing company in the same category of business is called benchmarking.

Salty's Surfshop reported Net Sales of $258,000,Cost of Goods Sold of $110,500,Operating Expenses of $62,400,and Income Tax Expense of 21,600.Salty's net income percentage was:

A business model deals with how a business makes customers want to buy their product.

Which would NOT be considered an extraordinary item?

The management discussion and analysis is typically located after the financial statements in a company's annual report.

Quickline Industries has a cost of goods sold of $1,900,000.The beginning and ending merchandise inventories are $133,000 and $125,000,respectively.Quickline Industries inventory turnover ratio is:

Market analysis ratios are used to determine if the business is:

A useful tool to reduce the bias when comparing the performance of different sized companies is to do a horizontal analysis on each one.

Island Coffee Company reported the following for 2012: What is the price earnings ratio for Island Coffee Company (rounded to two decimals)?