Exam 14: Financial Statement Analysis

The Bedford Corporation reported the following income statement and balance sheet amounts and additional information for the end of the current year. Inventory and prepaid expenses account for $30,000 of the current year's current assets. Average inventory for the current year is $36,250. Average net accounts receivable for the current year is $45,000. There are 35,000 shares of common stock outstanding. Total dividends paid during the current year were $17,000. The market price per share of common stock is $20. What is the debt ratio for the current year?

Which of the following is the formula for computing the price-earnings ratio?

The formula to compute the current ratio is

Horizontal analysis allows the comparison of companies with different amounts of net sales and net assets.

The Bedford Corporation reported the following income statement and balance sheet amounts and additional information for the end of the current year. Inventory and prepaid expenses account for $30,000 of the current year's current assets. Average inventory for the current year is $36,250. Average net accounts receivable for the current year is $45,000. There are 35,000 shares of common stock outstanding. Total dividends paid during the current year were $17,000. The market price per share of common stock is $20. What is the price-earnings ratio for the current year?

The Stemple Corporation data for the current year: What would a horizontal analysis report with respect to long-term liabilities show?

A company reported the following amounts of net income: Which of the following is the percentage change from Year 1 to Year 2?

Which of the following is the formula to compute day's sales in receivable?

The following information relates to Tappan Corporation. Required: a.What is the book value per share of common stock for the current year? b.What is the price-earnings ratio for the current year? c.What is the rate of return on total assets for the current year? d.What is the times-interest-earned ratio for the current year?

To follow is selected information about The Boston Company for the current year and prior year. What is the current year's cost of goods sold percentage (as would be found on a vertical analysis of the income statement for the current year)?

The inventory turnover ratio is the ratio of cost of goods sold to average inventory.

In a vertical analysis of a balance sheet,total liabilities is assigned a percentage of 100.

Common size statements allow the comparison of two or more companies with different amounts of net sales and net assets.

The McCumber Corporation data for the current year: With respect to current assets,what would a horizontal analysis report?

The formula for computing the rate of return on common stockholders' equity is

The Stemple Corporation data for the current year: What would a horizontal analysis report with respect to common stock show?

The following information relates to Woolf Unlimited for the past two years. What is the current ratio for the current year?

Use the following information to do a horizontal analysis of Boyce Corporation's income statement for the current year and prior year:

The formula for computing earnings per share of common stock is

Most financial statement analysis covers trends of more than one year.