Exam 14: Financial Statement Analysis

The Hummel 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 $28,000 of the current year's current assets. Average inventory for the current year is $12,000. Average net accounts receivable for the current year is $32,000. There are 40,000 shares of common stock outstanding. Total dividends paid during the current year were $60,000. The market price per share of common stock is $25. What is the company's rate of return on net sales for the current year?

The Hummel 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 $28,000 of the current year's current assets. Average inventory for the current year is $12,000. Average net accounts receivable for the current year is $32,000. There are 10,000 shares of common stock outstanding. Total dividends paid during the current year were $60,000. The market price per share of common stock is $25. What is the company's price-earnings ratio for the current year?

A trend percentage is computed by dividing the dollar amount of change by the base-year amount.

The common size statement percentages are different from those that appear in vertical analysis.

The Amos 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 $38,250. 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 inventory turnover for the current year?

Investors and creditors generally evaluate a company by using a single year's data.

Gavette Company reported the following information for the current year and prior year: What would a vertical analysis report with respect to current year income tax expense?

The inventory turnover ratio indicates how rapidly inventory is sold.

The Goodberry Corporation data for the current year and prior year is as follows: What would a horizontal analysis report with respect to common stock?

The following selected information relates to Belcher Unlimited for the past two years. Days' sales in receivables for the current year is closest to

Rate of return on net sales is a measure of a company's profitability.

The Hummel 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 $28,000 of the current year's current assets. Average inventory for the current year is $12,000. Average net accounts receivable for the current year is $32,000. There are 40,000 shares of common stock outstanding. Total dividends paid during the current year were $60,000. The market price per share of common stock is $25. What is the company's times-interest-earned ratio for the current year?

Working capital is a measure of a company's ability to pay its current obligations.

Use the following information to do a horizontal analysis of Carlin Corporation's balance sheet for the end of the current and prior years. Fill in the table.

The Hummel 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 $28,000 of the current year's current assets. Average inventory for the current year is $12,000. Average net accounts receivable for the current year is $32,000. There are 20,000 shares of common stock outstanding. Total dividends paid during the current year were $100,000. The market price per share of common stock is $25. What is the company's dividend yield for the current year?

The Bristol Corporation data for the current year and prior year is as follows: With respect to common stock, what would a horizontal analysis report?

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

The following information relates to Belcher Unlimited for the past two years. The current ratio for the current year is closest to

In performing a vertical analysis of a balance sheet, which of the following is generally used as the base amount?

Sales revenue is used as the base for vertical analysis percentages on the income statement.