Question 1

A component of operating efficiency and profitability,calculated by expressing net income as a percent of net sales,is the:

Accepted Answer

A) Acid-test ratio. 
B) Merchandise turnover. 
C) Price earnings ratio. 
D) Accounts receivable turnover. 
E) Profit margin ratio. 
A) Acid-test ratio. 
B) Merchandise turnover. 
C) Price earnings ratio. 
D) Accounts receivable turnover. 
E) Profit margin ratio.

Question 2

Low expectations of future performance result in a low price-earnings (PE)ratio.

Accepted Answer

A) True 
 B)False

Question 3

Comparative statements for Warmer Corporation are shown below:
   Calculate trend percentages for all income statement amounts shown and comment on the results.Use Year 1 as the base year.Comment on the results.

Accepted Answer

@#IMG-DLM& During Year 2,sales declined,cost of sa

Question 4

Refer to the following selected financial information from Texas Electronics.
 
-Compute the company's acid-test ratio for Year 2.

Accepted Answer

A) 2.26. 
B) 1.98. 
C) 2.95. 
D) 3.05. 
E) 1.88. 
A) 2.26. 
B) 1.98. 
C) 2.95. 
D) 3.05. 
E) 1.88.

Question 5

The following current year information is available from a manufacturing company:
   Calculate the company's accounts receivable turnover and its days' sales uncollected.

Accepted Answer

Accounts receivable turnover =

Question 6

The comparison of a company's financial condition and performance across time is known as ________.

Accepted Answer

The answer of The comparison of a company's financial condition...

Question 7

Horizontal analysis is the comparison of a company's financial condition and performance to a base amount.

Accepted Answer

A) True 
 B)False

Question 8

What is the purpose of a good financial statement analysis report? What are the key components?

Accepted Answer

A good financial statement analysis repo

Question 9

The percent change of a comparative financial statement item is computed by subtracting the estimated period amount from the base period amount,dividing the result by the base period amount and multiplying that result by 100.

Accepted Answer

A) True 
 B)False

Question 10

The market price of Shaw Corporation's common stock is $47.50.Shaw declared and paid cash dividends of $3.28 per share and had earnings per share of $6.89.The Dividend yield ratio is:

Accepted Answer

A) 14.5%. 
B) 7.4%. 
C) 6.5%. 
D) 144.8%. 
E) 6.9%. 
A) 14.5%. 
B) 7.4%. 
C) 6.5%. 
D) 144.8%. 
E) 6.9%.

Question 11

Ash Company reported sales of $400,000 for Year 1,$450,000 for Year 2,and $500,000 for Year 3.Using Year 1 as the base year,what is the revenue trend percent for Years 2 and 3?

Accepted Answer

A) 80% for Year 2 and 90% for Year 3. 
B) 88% for Year 2 and 80% for Year 3. 
C) 88% for Year 2 and 90% for Year 3. 
D) 112.5% for Year 2 and 125% for Year 3. 
E) 125% for Year 2 and 112.5% for Year 3. 
A) 80% for Year 2 and 90% for Year 3. 
B) 88% for Year 2 and 80% for Year 3. 
C) 88% for Year 2 and 90% for Year 3. 
D) 112.5% for Year 2 and 125% for Year 3. 
E) 125% for Year 2 and 112.5% for Year 3.

Question 12

Selected current year company information follows:  The total asset turnover is:

Accepted Answer

A) 2.24 times 
B) 2.81 times 
C) 3.64 times 
D) 4.67 times 
E) 6.28 times 
A) 2.24 times 
B) 2.81 times 
C) 3.64 times 
D) 4.67 times 
E) 6.28 times

Question 13

Carducci Corporation reported net sales of $3.6 million and beginning total assets of $0.9 million and ending total assets of 1.3 million.The average total asset amount is:

Accepted Answer

A) $2.3 million. 
B) $2.7 million. 
C) $0.25 million. 
D) $0.36 million. 
E) $1.1 million. 
A) $2.3 million. 
B) $2.7 million. 
C) $0.25 million. 
D) $0.36 million. 
E) $1.1 million.

Question 14

Three of the most common tools of financial analysis are:

Accepted Answer

A) Financial reporting,sensitivity analysis,transactional analysis. 
B) Fair presentation,variance analysis,financial reporting. 
C) Horizontal analysis,vertical analysis,ratio analysis. 
D) Relativity analysis,financial reporting,fair value analysis. 
E) Liquidation analysis,political analysis,fair value analysis. 
A) Financial reporting,sensitivity analysis,transactional analysis. 
B) Fair presentation,variance analysis,financial reporting. 
C) Horizontal analysis,vertical analysis,ratio analysis. 
D) Relativity analysis,financial reporting,fair value analysis. 
E) Liquidation analysis,political analysis,fair value analysis.

Question 15

Refer to the following selected financial information from Texas Electronics.
 
-Compute the company's inventory turnover for Year 2.

Accepted Answer

A) 4.72. 
B) 4.33. 
C) 3.28. 
D) 5.78. 
E) 3.86. 
A) 4.72. 
B) 4.33. 
C) 3.28. 
D) 5.78. 
E) 3.86.

Question 16

The comparison of a company's financial condition and performance to a base amount is known as ________.

Accepted Answer

The answer of The comparison of a company's financial condition...

Question 17

Express the following income statement information in common-size percentages and in trend percentages using Year 1 as the base year.

Accepted Answer

The answer of Express the following income statement information in...

Question 18

The key factors section of a financial statement analysis report includes both quantitative and qualitative indicators of company performance.

Accepted Answer

A) True 
 B)False

Question 19

Refer to the following selected financial information from Texas Electronics.
 
-Compute the company's working capital for Year 2.

Accepted Answer

A) $232,700. 
B) $220,600. 
C) $147,200. 
D) $111,700. 
E) $142,700. 
A) $232,700. 
B) $220,600. 
C) $147,200. 
D) $111,700. 
E) $142,700.

Question 20

When an item has a value in the base period and zero in the analysis period,the decrease is 0 percent.

Accepted Answer

A) True 
 B)False

Exam 13: Analysis of Financial Statements

A component of operating efficiency and profitability,calculated by expressing net income as a percent of net sales,is the:

Low expectations of future performance result in a low price-earnings (PE)ratio.

Comparative statements for Warmer Corporation are shown below: Calculate trend percentages for all income statement amounts shown and comment on the results.Use Year 1 as the base year.Comment on the results.

Refer to the following selected financial information from Texas Electronics. -Compute the company's acid-test ratio for Year 2.

The following current year information is available from a manufacturing company: Calculate the company's accounts receivable turnover and its days' sales uncollected.

The comparison of a company's financial condition and performance across time is known as ________.

Horizontal analysis is the comparison of a company's financial condition and performance to a base amount.

What is the purpose of a good financial statement analysis report? What are the key components?

The percent change of a comparative financial statement item is computed by subtracting the estimated period amount from the base period amount,dividing the result by the base period amount and multiplying that result by 100.

The market price of Shaw Corporation's common stock is $47.50.Shaw declared and paid cash dividends of $3.28 per share and had earnings per share of $6.89.The Dividend yield ratio is:

Ash Company reported sales of $400,000 for Year 1,$450,000 for Year 2,and $500,000 for Year 3.Using Year 1 as the base year,what is the revenue trend percent for Years 2 and 3?

Selected current year company information follows: The total asset turnover is:

Carducci Corporation reported net sales of $3.6 million and beginning total assets of $0.9 million and ending total assets of 1.3 million.The average total asset amount is:

Three of the most common tools of financial analysis are:

Refer to the following selected financial information from Texas Electronics. -Compute the company's inventory turnover for Year 2.

The comparison of a company's financial condition and performance to a base amount is known as ________.

Express the following income statement information in common-size percentages and in trend percentages using Year 1 as the base year.

The key factors section of a financial statement analysis report includes both quantitative and qualitative indicators of company performance.

Refer to the following selected financial information from Texas Electronics. -Compute the company's working capital for Year 2.

When an item has a value in the base period and zero in the analysis period,the decrease is 0 percent.

Accounting in Business

Accounting for Business Transactions

Adjusting Accounts for Financial Statements

Accounting for Merchandising Operations

Inventories and Cost of Sales

Cash,fraud,and Internal Controls

Accounting for Receivables

Accounting for Long-Term Assets

Accounting for Current Liabilities

Accounting for Long-Term Liabilities

Corporate Reporting and Analysis

Reporting Cash Flows

Managerial Accounting Concepts and Principles

Job Order Costing and Analysis

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Analysis

Master Budgets and Performance Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Time Value of Money

Investments

Lean Principles and Accounting

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