Exam 15: Financial Statement Analysis

Using vertical analysis of the income statement,a company's net income as a percentage of net sales is 15%;therefore,the cost of goods sold as a percentage of sales must be 85%.

On a common-sized income statement,all items are stated as a percent of total assets or equities at year-end.

In the vertical analysis of an income statement,each item is generally stated as a percentage of total assets.

Balance sheet and income statement data indicate the following: Based on the data presented above,what is the number of times bond interest charges were earned (round to one decimal point)?

Based on the following data for the current year,what is the accounts receivable turnover?

The following data are taken from the balance sheet at the end of the current year.Determine the (a)working capital, (b)current ratio,and (c)quick ratio.Present figures used in your computations.Round ratios to the nearest tenth.

In computing the ratio of net sales to assets,long-term investments are excluded from average total assets.

The following items are reported on a company's balance sheet: Determine the (a)current ratio,and (b)quick ratio.Round your answer to one decimal place.

The following information pertains to Brock Company.Assume that all balance sheet amounts represent both average and ending balance figures.Assume that all sales were on credit. Assets Liabilities and Stockholders' Equity Income Statement What is the current ratio for this company?

The current ratio is

The balance sheets at the end of each of the first two years of operations indicate the following: If net income is $115,000 and interest expense is $30,000 for 2012,and the market price is $30,What is the price-earnings ratio on common stock for 2012 (Round intermediate calculation to two decimal place and final answers to one decimal place)?

The relationship of $325,000 to $125,000,expressed as a ratio,is

A common measure of liquidity is

A company reports the following: Determine the ratio of net sales to total assets.Round your answer to one decimal place.

The ratio of the market price per share of common stock on a specific date to the annual earnings per share is referred to as the price-earnings ratio.

Vertical analysis refers to comparing the financial statements of a single company for several years.

In horizontal analysis,the current year is the base year.

Which of the following measures a company's ability to pay its current liabilities?

In a common-sized income statement,each item is expressed as a percentage of net income.

Interpreting financial analysis should be considered in light of conditions peculiar to the industry and the general economic conditions.