Exam 17: Financial Statement Analysis

Zebra Inc. cost of goods sold for the year is $1,900,000 and average merchandise inventory for the year is $129,000. Calculate the inventory turnover ratio of the company.

The times-interest-earned ratio is also known as interest-coverage ratio.

e-Bay Inc. provides the following information for the year 2015: The company has no preferred stock outstanding. Calculate the earnings per share for the year 2015.

e-Bay Inc. provides the following data: Calculate the asset turnover for the year 2015.

Data for Martin Corp and Tortoize Inc. as follows: Prepare a comparative common-size income statement for Martin Corp and Tortoize Inc. for the year ending December 31, 2016. Round off the percentages to two decimal places. Use a multiple step format for the income statement.

To calculate the acid-test ratio, merchandise inventory and prepaid expenses are ignored.

Extraordinary items are unusual and infrequent in nature.

Days' sales in receivables measures the return on average receivables using credit sales.

Prepare a vertical analysis report of the income statement shown below. Round off the percentages to two decimal places.

Extracts from the balance sheet of Atlantis Inc. are as follows: Compute the quick ratio.

Which of the following types of financial statement analysis would be used to see how sales revenue of a company has changed from one year to the next?

Which of the following best describes horizontal analysis?

Discontinued operations and extraordinary items are reported without considering their income tax effect.

Atlantis Inc. provides the following historical data: Prepare the trend analysis report Use 2011 as the base year, and round answers to the nearest percent.

In a vertical analysis of the balance sheet, each line item is shown as a percentage of shareholders' equity.

Atlantis Inc. provides the following data: Calculate the debt to equity ratio.

The trend analysis report of Doppler Inc. is given below: Which of the following is a correct conclusion from the above analysis?

A high current ratio indicates that current liabilities are more than current assets.

Data for Nobell Inc. is as follows: Prepare a horizontal analysis of the comparative balance sheet of Nobell Inc. Round percentage changes to one decimal place.

An adverse opinion is issued if the auditor finds that the financial statements are not presented fairly.