Exam 16: Financial Statement Analysis

_________________ expresses a line item as a percentage of some prior-period amount.

Which one of the following is not a characteristic generally evaluated in ratio analysis?

Which of the following formulas would be used to determine the inventory turnover ratio?

Many industrial averages and figures are published in the each of the following except?

For meaningful analysis, ratios should be compared with a standard.

MATCHING Match the classifications of ratios with each description. -Allows evaluation of the extent to which funds are used efficiently

Indicate the type of each ratio listed below. -Dividend payout ratio

Presented below are selected data from the financial statements of Korn Corp. for 2014 and 2013. 2014 2013 Net income \ 100,000 \ 123,000 Weighted average number of common shares outstanding 105,000 95,000 Market price per share of common stock at the end of the year \ 12.00 \ 10.00 Earnings per share \ 2.00 \ 1.83 The price-earnings ratio for 2014 is

Select the ratio that each statement below most properly satisfies. -A measure that tells an investor the proportion of earnings that a company pays in dividends

Select the ratio that each statement below most properly satisfies. -A measure of the company's ability to pay its short-term liabilities out of short-term assets

Figure 16-7 There were 30,000 shares of common stock outstanding throughout 2013. Dividends on common stock amounted to $21,000 and dividends on preferred stock amounted to $30,000. The market value of a share of common stock was $36 at the end of 2013. The income tax rate is 40%. The accounts receivable and inventory accounts had beginning balances of $58,500 and $101,400 respectively. Total assets at the beginning of the year were $430,500. -Refer to Figure 16-7. Required: Calculate the following ratios: A. Current ratio B. Quick ratio C. Accounts receivable turnover ratio and accounts receivable turnover in days D. Inventory turnover ratio and inventory turnover in days

Figure 16-5.The following information that was obtained from the 2014 and 2013 financial statements of James Company, Norris Corporation, and Zorro Company: -Refer to Figure 16-5. Compare the three companies and answer the following:

Figure 16-2.Financial statements for Grange Company appear below: Dividends during 2014 totaled $127,000, of which $5,000 were preferred dividends.The market price of a share of common stock on December 31, 2014, was $100. -The income statement for Ray Company for the year ended December 31, 2013, appears below. Sales \ 610,000 Cost of goods sold 380,000 Gross margin 230,000 Expenses 170,000 Expenses \6 0,000 *Includes $30,000 of interest expense and $18,000 of income tax expense. Additional information: Required: Compute the following ratios for 2013:

Swanson Company had $250,000 of current assets and $90,000 of current liabilities before borrowing $60,000 from the bank with a 3-month note payable. What effect did the borrowing transaction have on Swanson Company's current ratio?

A company has a receivables turnover of 15 times. The average net receivables during the period are $430,000. What is the amount of net credit sales for the period?

Lisa's Dress Company, a retailer, had cost of goods sold of $180,000 last year. The beginning inventory balance was $13,000 and the ending inventory balance was $18,000. The company's average inventory turnover in days was closest to

MATCHING Match the classifications of ratios with each description. -Measures the ability of the company to meet its current obligations

MATCHING Match the classifications of ratios with each description. -Measures the ability of a company to meet long and short term obligations

Figure 16-2.Financial statements for Grange Company appear below: Dividends during 2014 totaled $127,000, of which $5,000 were preferred dividends.The market price of a share of common stock on December 31, 2014, was $100. -Winter Corporation has issued common stock only. The company has been successful and has a gross profit rate of 20%. The information shown below was taken from the company's financial statements. Required: Compute the following:

An example of horizontal analysis is the increase in cost of goods sold by 25% from 2013 to 2014.