Exam 13: Analysis of Financial Statements

Evaluation of company performance does not include analysis of (1)past and current performance,(2)current financial position,and (3)future performance and risk.

Match each of the appropriate formulas with correct term. -

Powers Company reported net sales of $1,200,000,average Accounts Receivable,net of $78,500,and net income of $51,025.The accounts receivable turnover ratio is:

Graphical analysis of the balance sheet can be useful in assessing sources of financing.

Match each of the appropriate formulas with correct term. -

Calculate the percent increase or decrease for each of the following financial statement items:

For the following financial statement items,calculate trend percentages using Year 1 as the base year:

The background on a company,its industry,and its economic setting is usually included in which of the following sections of a financial statement analysis report?

Refer to the following selected financial information from WorkFit Corporation.Compute the company's acid-test ratio.

Horizontal analysis is used to reveal patterns in data covering successive periods.

A corporation reported cash of $14,000 and total assets of $178,300 on its balance sheet.Its common-size percent for cash equals:

Match each of the appropriate formulas with correct term. -

Describe ratio analysis including its purpose,application,and interpretation.

Use the following selected information from Whitman Corp. -To determine the Year 2 and Year 1 trend percentages for cost of goods sold using Year 1 as the base.

Three of the most common tools of financial analysis are (1)________,(2)________,and (3)________.

A corporation reports the following year-end balance sheet data. -The company's debt ratio equals:

A company reports basic earnings per share of $3.50,cash dividends per share of $0.75,and a market price per share of $64.75.The company's dividend yield equals 21.4%.

A company had a market price of $27.50 per share,earnings per share of $1.25,and dividends per share of $0.40.Its price-earnings ratio equals:

Vertical analysis is a tool to evaluate individual financial statement items or groups of items in terms of a specific base amount.