Selected data for the Boat Rental Company follow: $\begin{array} {|l | r | r | } \hline & \text { Current Year } & \text { Prior Year } \\ \hline \begin{array} { l } \text { Preferred Shares, 8\% Par } \\ \text { Value } \$ 50 \end{array} & \$ 250000 & \$ 250000 \\ \hline \begin{array} { l } \text { Common Shares, Per Value } \\ \$ 10 \end{array} & \$ 500000 & \$ 500000 \\ \hline \begin{array} { l } \text { Retained Earnings at End of } \\ \text { Year } \end{array} & \$ 257000 & \$ 240000 \\ \hline \begin{array} { l } \text { Net Income } \\ \end{array}&\$ 102000 & \$ 90000\\ \hline \begin{array} { l } \text { Dividends Paid on Preferred } \\ \text { Shares } \end{array} &\$20000&\$20000 \\ \hline \begin{array} { l } \text { Dividends Paid on Common } \\ \text { Shares } \end{array} & \$ 55000 & \$50000 \\ \hline \begin{array} { l } \text { Quoted Market Price per } \\ \text { Common Share at Year End } \end{array} & \$ 25 & \$20 \\ \hline \end{array}$ -What is the dividend yield ratio on common shares for the current year,rounded to the nearest tenth of a percent?

A) 4.4% B) 6.6%. C) 6.8%. D) 7.4%. A) 4.4% B) 6.6%. C) 6.8%. D) 7.4%.

Exam 14: Financial Statement Analysis

Irawaddy Company,a retailer,had cost of goods sold of $230,000 last year.The beginning inventory balance was $24,000,and the ending inventory balance was $22,000.The company's average sale period (turnover in days)was closest to which of the following?

(Multiple Choice)

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Question 101

Financial statements for Narumi Company appear below: $Financial statements for Narumi Company appear below: \begin{array}{|l|r|} \hline&\text {Larned Company } \\ &\text { Income Statement } \\ &\text { For the Year Ended December 31, Year } \\ &2\\ &\text { (dollars in thousands) }\\ \hline \text { Sales (All on Account) } & \$ 2050 \\ \hline \text { Costs of Goods Sold } & \$ 1430 \\ \hline \text { Gross Margin } & \$ 620 \\ \hline \text { Operating Expenses } & \$ 240 \\ \hline \text { Net Operating Income } & \$ 380 \\ \hline \text { Interest Expense } & \$ 50 \\ \hline \text { Net Income before Taxes } & \$ 330 \\ \hline \text { Income Taxes (30\%) } & \$ 99 \\ \hline \text { Net Income } & \$ 231\\ \hline \end{array} -Narumi Company's debt-to-equity ratio at the end of Year 2 was closest to which of the following?$ Larned Company Income Statement For the Year Ended December 31, Year 2 (dollars in thousands) Sales (All on Account) \ 2050 Costs of Goods Sold \ 1430 Gross Margin \ 620 Operating Expenses \ 240 Net Operating Income \ 380 Interest Expense \ 50 Net Income before Taxes \ 330 Income Taxes (30\%) \ 99 Net Income \ 231 -Narumi Company's debt-to-equity ratio at the end of Year 2 was closest to which of the following?

(Multiple Choice)

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Question 102

Lisa Inc.'s balance sheet appears below: The company's sales for the year were $300,000, its cost of goods sold was $220,000, and its net income was $35,000. All sales were on credit. Dividends paid on preferred shares for the year were $5,000. -Lisa Inc.'s return on common shareholders' equity for Year 2 was closest to which of the following?

(Multiple Choice)

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Question 103

Financial leverage is negative in which of the following situations?

(Multiple Choice)

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Question 104

Financial statements for Orange Company appear below: $Financial statements for Orange Company appear below: \begin{array}{|l|r|} \hline&\text { Orange Company } \\ &\text { Income Statement } \\ &\text { For the Year Ended December 31, Year } \\ &2\\ &\text { (dollars in thousands) }\\ \hline \text { Sales (All on Account) } & \$ 2830 \\ \hline \text { Costs of Goods Sold } & \$ 1980 \\ \hline \text { Gross Margin } & \$ 850 \\ \hline \text { Operating Expenses } & \$ 340 \\ \hline \text { Net Operating Income } & \$ 510 \\ \hline \text { Interest Expense } & \$ 30 \\ \hline \text { Net Income before Taxes } & \$ 480 \\ \hline \text { Income Taxes (30\%) } & \$ 144 \\ \hline \text { Net Income } & \$ 336\\ \hline \end{array} Total dividends during Year 2 were \$ 156,000 , of which \$ 18,000 were preferred dividends. The market price of a share of common stock on December 31, Year 2 was \$ 100 . -Orange Company's dividend yield ratio on December 31,Year 2 was closest to which of the following?$ Orange Company Income Statement For the Year Ended December 31, Year 2 (dollars in thousands) Sales (All on Account) \ 2830 Costs of Goods Sold \ 1980 Gross Margin \ 850 Operating Expenses \ 340 Net Operating Income \ 510 Interest Expense \ 30 Net Income before Taxes \ 480 Income Taxes (30\%) \ 144 Net Income \ 336 Total dividends during Year 2 were $\$ 156,000$ , of which $\$ 18,000$ were preferred dividends. The market price of a share of common stock on December 31, Year 2 was $\$ 100$ . -Orange Company's dividend yield ratio on December 31,Year 2 was closest to which of the following?

(Multiple Choice)

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Question 105

Which one of the following would increase the working capital of a company?

(Multiple Choice)

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Question 106

The total assets of the Philbin Company on January 1 were $2.3 million and on December 31 were $2.5 million.Net income for the year was $188,000.Dividends for the year were $75,000,interest expense was $70,000,and the tax rate was 30%.The return on total assets for the year was closest to which of the following?

(Multiple Choice)

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Question 107

Harton Company,a retailer,had cost of goods sold of $250,000 last year.The beginning inventory balance was $20,000,and the ending inventory balance was $22,000.The company's inventory turnover was closest to which of the following?

(Multiple Choice)

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Question 108

Financial statements for Larosa Company appear below: $Financial statements for Larosa Company appear below: \begin{array}{|l|r|}\hline & \begin{array}{r} \text { Larned Company } \\ \text { Income Statement }\\\text { For the Year Ended December 31, Year 2 }\\\text { (dollars in thousands) } \end{array} \\ \\hline \text { Sales (All on Account) } & \$ 1870 \\ \hline \text { Costs of Goods Sold } & \$ 1300 \\ \hline \text { Gross Margin } & \$ 570 \\ \hline \text { Operating Expenses } & \$ 220 \\ \hline \text { Net Operating Income } & \$ 350 \\ \hline \text { Interest Expense } & \$ 40 \\ \hline \text { Net Income before Taxes } & \$ 310 \\ \hline \text { Income Taxes }(30 \%) & \$ 93 \\ \hline \text { Net Income } & \$ 217 \\ \hline \end{array} Total dividends during Year 2 were \$ 47,000 , of which \$ 10,000 were preferred dividends. The market price of a common share on December 31 , Year 2 was \$ 70 . -Larosa Company's earnings per common share for Year 2 was closest to which of the following?$ Larned Company Income Statement For the Year Ended December 31, Year 2 (dollars in thousands) hline Sales (All on Account) \ 1870 Costs of Goods Sold \ 1300 Gross Margin \ 570 Operating Expenses \ 220 Net Operating Income \ 350 Interest Expense \ 40 Net Income before Taxes \ 310 Income Taxes (30\%) \ 93 Net Income \ 217 Total dividends during Year 2 were $\$ 47,000$ , of which $\$ 10,000$ were preferred dividends. The market price of a common share on December 31 , Year 2 was $\$ 70$ . -Larosa Company's earnings per common share for Year 2 was closest to which of the following?

(Multiple Choice)

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Question 109

Selected data for the Boat Rental Company follow: Current Year Prior Year Preferred Shares, 8\% Par Value \ 50 \ 250000 \ 250000 Common Shares, Per Value \ 10 \ 500000 \ 500000 Retained Earnings at End of Year \ 257000 \ 240000 Net Income \ 102000 \ 90000 Dividends Paid on Preferred Shares \2 0000 \2 0000 Dividends Paid on Common Shares \ 55000 \5 0000 Quoted Market Price per Common Share at Year End \ 25 \2 0 -What is the dividend yield ratio on common shares for the current year,rounded to the nearest tenth of a percent?

(Multiple Choice)

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Question 110

Perlman Company had 100,000 common shares and 20,000 preferred shares at the end of the year just completed.Preferred shareholders received total dividends of $140,000.Common shareholders received total dividends of $210,000.If the dividend payout ratio for the year was 70%,what was the net income for the year?

(Multiple Choice)

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Question 111

Financial statements for March Company appear below: $Financial statements for March Company appear below: \begin{array}{|l|r|} \hline&\begin{array}{r} \text { March Company } \\ \text { Income Statement }\\ \text { For the Year Ended December 31, Year } \\ 2 \\ \text { (dollars in thousands) } \\\end{array} \\ \hline \text { Sales (All on Account) } & \$ 1610 \\ \hline \text { Costs of Goods Sold } & \$ 1120 \\ \hline \text { Gross Margin } & \$ 490 \\ \hline \text { Operating Expenses } & \$ 190 \\ \hline \text { Net Operating Income } & \$ 300 \\ \hline \text { Interest Expense } & \$ 50 \\ \hline \text { Net Income before Taxes } & \$ 250 \\ \hline \text { Income Taxes (30\%) } & \$ 75 \\ \hline \text { Net Income } & \$ 175 \\ \hline \end{array} -March Company's working capital (in thousands of dollars)at the end of Year 2 was closest to which of the following?$ March Company Income Statement For the Year Ended December 31, Year 2 (dollars in thousands) Sales (All on Account) \ 1610 Costs of Goods Sold \ 1120 Gross Margin \ 490 Operating Expenses \ 190 Net Operating Income \ 300 Interest Expense \ 50 Net Income before Taxes \ 250 Income Taxes (30\%) \ 75 Net Income \ 175 -March Company's working capital (in thousands of dollars)at the end of Year 2 was closest to which of the following?

(Multiple Choice)

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Question 112

Irappa Company,a retailer,had cost of goods sold of $170,000 last year.The beginning inventory balance was $28,000,and the ending inventory balance was $26,000.The company's average sale period (turnover in days)was closest to which of the following?

(Multiple Choice)

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Question 113

Financial statements for Oratz Company appear below: $Financial statements for Oratz Company appear below: \begin{array}{|l|r|} \hline&\text { Oratz Company } \\ &\text { Income Statement } \\ &\text { For the Year Ended December 31, Year } \\ &2\\ &\text { (dollars in thousands) }\\ \hline \text { Sales (All on Account) } & \$ 1630 \\ \hline \text { Costs of Goods Sold } & \$ 1140 \\ \hline \text { Gross Margin } & \$ 490 \\ \hline \text { Operating Expenses } & \$ 190 \\ \hline \text { Net Operating Income } & \$ 300 \\ \hline \text { Interest Expense } & \$ 30 \\ \hline \text { Net Income before Taxes } & \$ 270 \\ \hline \text { Income Taxes (30\%) } & \$ 81 \\ \hline \text { Net Income } & \$ 189\\ \hline \end{array} Total dividends during Year 2 were \$ 139,000 , of which \$ 6,000 were preferred dividends. The market price of a common share on December 31, Year 2 was \$ 260 . -Oratz Company's dividend yield ratio on December 31,Year 2 was closest to which of the following?$ Oratz Company Income Statement For the Year Ended December 31, Year 2 (dollars in thousands) Sales (All on Account) \ 1630 Costs of Goods Sold \ 1140 Gross Margin \ 490 Operating Expenses \ 190 Net Operating Income \ 300 Interest Expense \ 30 Net Income before Taxes \ 270 Income Taxes (30\%) \ 81 Net Income \ 189 Total dividends during Year 2 were $\$ 139,000$ , of which $\$ 6,000$ were preferred dividends. The market price of a common share on December 31, Year 2 was $\$ 260$ . -Oratz Company's dividend yield ratio on December 31,Year 2 was closest to which of the following?

(Multiple Choice)

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Question 114

Last year,Javer Company had a net income of $200,000,income tax expense of $74,000,and interest expense of $20,000.The company's times interest earned was closest to which of the following?

(Multiple Choice)

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(81)

Question 115

Financial statements for Marcial Company appear below: 11ee3cef_af3d_14b8_8c2a_ab0280ef355e_TB1327_11 -Marcial Company's working capital (in thousands of dollars)at the end of Year 2 was closest to which of the following?

(Multiple Choice)

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Question 116

Financial statements for Laroche Company appear below: $Financial statements for Laroche Company appear below: Shareholders' Equity: \begin{array}{|l|r|}\hline & \begin{array}{r} \text { Larned Company } \\ \text { Income Statement }\\\text { For the Year Ended December 31, Year 2 }\\\text { (dollars in thousands) } \end{array} \\ \hline \text { Sales (All on Account) } & \$ 2250 \\ \hline \text { Costs of Goods Sold } & \$ 1570 \\ \hline \text { Gross Margin } & \$ 680 \\ \hline \text { Operating Expenses } & \$ 270 \\ \hline \text { Net Operating Income } & \$ 410 \\ \hline \text { Interest Expense } & \$ 30 \\ \hline \text { Net Income before Taxes } & \$ 380 \\ \hline \text { Income Taxes }(30 \%) & \$ 114 \\ \hline \text { Net Income } & \$ 266 \\ \hline \end{array} Total dividends during Year 2 were \$ 166,000 , of which \$ 10,000 were preferred dividends. The market price of a common share on December 31, Year 2 was \$ 150 . -Laroche Company's price-earnings ratio on December 31,Year 2 was closest to which of the following?$ Shareholders' Equity: Larned Company Income Statement For the Year Ended December 31, Year 2 (dollars in thousands) Sales (All on Account) \ 2250 Costs of Goods Sold \ 1570 Gross Margin \ 680 Operating Expenses \ 270 Net Operating Income \ 410 Interest Expense \ 30 Net Income before Taxes \ 380 Income Taxes (30\%) \ 114 Net Income \ 266 Total dividends during Year 2 were $\$ 166,000$ , of which $\$ 10,000$ were preferred dividends. The market price of a common share on December 31, Year 2 was $\$ 150$ . -Laroche Company's price-earnings ratio on December 31,Year 2 was closest to which of the following?

(Multiple Choice)

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Question 117

Financial statements for Larosa Company appear below: $Financial statements for Larosa Company appear below: \begin{array}{|l|r|}\hline & \begin{array}{r} \text { Larned Company } \\ \text { Income Statement }\\\text { For the Year Ended December 31, Year 2 }\\\text { (dollars in thousands) } \end{array} \\ \\hline \text { Sales (All on Account) } & \$ 1870 \\ \hline \text { Costs of Goods Sold } & \$ 1300 \\ \hline \text { Gross Margin } & \$ 570 \\ \hline \text { Operating Expenses } & \$ 220 \\ \hline \text { Net Operating Income } & \$ 350 \\ \hline \text { Interest Expense } & \$ 40 \\ \hline \text { Net Income before Taxes } & \$ 310 \\ \hline \text { Income Taxes }(30 \%) & \$ 93 \\ \hline \text { Net Income } & \$ 217 \\ \hline \end{array} Total dividends during Year 2 were \$ 47,000 , of which \$ 10,000 were preferred dividends. The market price of a common share on December 31 , Year 2 was \$ 70 . -Larosa Company's dividend yield ratio on December 31,Year 2 was closest to which of the following?$ Larned Company Income Statement For the Year Ended December 31, Year 2 (dollars in thousands) hline Sales (All on Account) \ 1870 Costs of Goods Sold \ 1300 Gross Margin \ 570 Operating Expenses \ 220 Net Operating Income \ 350 Interest Expense \ 40 Net Income before Taxes \ 310 Income Taxes (30\%) \ 93 Net Income \ 217 Total dividends during Year 2 were $\$ 47,000$ , of which $\$ 10,000$ were preferred dividends. The market price of a common share on December 31 , Year 2 was $\$ 70$ . -Larosa Company's dividend yield ratio on December 31,Year 2 was closest to which of the following?

(Multiple Choice)

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Question 118

Trend percentages state several years' financial data in terms of a base year.For example,sales for every year would be stated as a percentage of the sales in the base year.

(True/False)

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Question 119

A company's current ratio and acid-test ratios are both greater than 1.0 to 1.If obsolete inventory is written off,what would be the effect?

(Multiple Choice)

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Question 120

Showing 101 - 120 of 203

Irawaddy Company,a retailer,had cost of goods sold of $230,000 last year.The beginning inventory balance was $24,000,and the ending inventory balance was $22,000.The company's average sale period (turnover in days)was closest to which of the following?

Financial leverage is negative in which of the following situations?

Which one of the following would increase the working capital of a company?

Harton Company,a retailer,had cost of goods sold of $250,000 last year.The beginning inventory balance was $20,000,and the ending inventory balance was $22,000.The company's inventory turnover was closest to which of the following?

Irappa Company,a retailer,had cost of goods sold of $170,000 last year.The beginning inventory balance was $28,000,and the ending inventory balance was $26,000.The company's average sale period (turnover in days)was closest to which of the following?

Last year,Javer Company had a net income of $200,000,income tax expense of $74,000,and interest expense of $20,000.The company's times interest earned was closest to which of the following?

Financial statements for Marcial Company appear below: 11ee3cef_af3d_14b8_8c2a_ab0280ef355e_TB1327_11 -Marcial Company's working capital (in thousands of dollars)at the end of Year 2 was closest to which of the following?

Trend percentages state several years' financial data in terms of a base year.For example,sales for every year would be stated as a percentage of the sales in the base year.

A company's current ratio and acid-test ratios are both greater than 1.0 to 1.If obsolete inventory is written off,what would be the effect?

Managerial Accounting and the Business Environment

Cost Terms,concepts,and Classifications

Cost Behaviour: Analysis and Use

Cost-Volume-Profit Relationships

Systems Design: Job-Order Costing

Systems Design: Process Costing

Activity-Based Costing: A Tool to Aid Decision Making

Variable Costing: A Tool for Management

Budgeting

Standard Costs and Overhead Analysis

Reporting for Control

Relevant Costs for Decision Making

Capital Budgeting Decisions

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