Exam 14: Financial Statement Analysis

To follow is selected information about the Little Dipper Company for the current year and prior year. What is the current year's selling and general expenses percentage (as would be found on a vertical analysis of the income statement for the current year)?

The formula to compute the acid-test ratio is

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

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 $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 rate of return on common stockholder's equity for the current year?

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

The managerial accountant at the Toy Factory presented the following information at a meeting: Which company earns more gross profit for each dollar of sales revenue based on this common-size statement?

Selected information about the Thomas Trucks Company for the current year and prior year is given below. The current year's income tax percentage (as would be found on a vertical analysis of the income statement for the current year)is

The formula for computing earnings per share of common stock is

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

In comparing companies of different sizes, which of the following is most helpful?

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

The current ratio is the most widely used ratio to measure a company's ability to pay current liabilities.

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

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

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

To follow is selected information about the Little Dipper 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)?

Use the following information to do a horizontal analysis of Rae Company's income statement for the current year and prior year: What is the dollar change in gross profit?

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 $36,250. Average net accounts receivable for the current year is $62,000. 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 accounts receivable turnover for the current year?

Managers use a variety of financial ratios to evaluate a company's performance.

Comparing the horizontal analysis of McDonald's financial statements to the horizontal analysis of Burger King's financial statements in percentages of increase or decrease from 2010 to 2011 would be