Exam 12: Financial Statement Analysis

Match these terms to their correct definition. a.Accounts receivable turnover ratio e.Net profit margin percentage b.Cash ratio f.Operating margin percentage c.Gross profit percentage g.Quick ratio d.Inventory turnover ratio h.Total payout ratio -Measures the proportion of each sales dollar that is profit.

Which of the following is considered a measure of short-term liquidity?

The amount of working capital is more meaningful to users than the current ratio because working capital provides information on the composition of the current accounts.

Selected data from the financial statements are provided below: Refer to Rainsoft Company -Refer to Rainsoft Company. What is the current ratio for 2015?

Selected data from the financial statements are presented below: -Refer to Rapid Sign Corporation. What is the dividend payout ratio for 2015?

Public companies file their annual reports on Form ____________________.

A company reported the following amounts in its financial statements: From 2014 to 2015, the company's efficiency in managing inventory was

Inventory turned over seven times during the year at Rockdale Electronics. Similar electronics retailers have an inventory turnover equal to twelve times per year. Which of the following best explains the state of Rockdale's inventory management?

The net profit margin percentage reflects the amount of income for each dollar of sales.

MATCHING For each of the following sentences, select the phrase or group of words that best completes the statement. a. Debt-to-equity ratio b. Dividend payout ratio c. Dividend yield ratio d. Earnings per share e. Leverage f. Return on assets ratio g. Return on common equity ratio h. Stock repurchase payout -Difference between total payout and dividend payout.

Information from the financial statements is provided below: -Refer to Randstad, Inc. The dividend yield ratio for 2015 is

Which of the following is a measure of liquidity?

Select the ratio that would include each amount or account in its calculation. (Choices may be used more than once.) a.Times interest earned ratio b.Operating cash flow ratio c.Debt-to-equity ratio d.Return on equity -Total liabilities

Select the ratio that would include each amount or account in its calculation. (Choices may be used more than once.) a.Times interest earned ratio b.Operating cash flow ratio c.Debt-to-equity ratio d.Return on equity -Cash flows from operations

Each of the following is included in the MD&A section of a public company's Form 10-K except

The best source of information about a particular company is Standard & Poor's industry guide.

A company purchased inventory on credit. The effect of this transaction is that the

The acid test ratio is a stricter measure than the current ratio regarding a company's ability to pay its current obligations as they are due.

Match the term with its correct definition. a.Form 8-K d.Forms S1 and S2 b.Form 10-K e.MD&A c.Form 10-Q -Form that includes unaudited financial statements and provides a continuing view of the corporation's financial position during the year since it must be filed for each of the first three fiscal quarters of the corporation's fiscal year.

Along with its other financial statements, a public corporation must present its most recent two years of income statements within Item I of its Form 10-K.