Question 1

Nickolls Corporation has provided the following financial data:   The company's current ratio is closest to:

Accepted Answer

A) 0.47 
B) 0.40 
C) 0.19 
D) 4.25 
A) 0.47 
B) 0.40 
C) 0.19 
D) 4.25

Question 2

Mayfield Corporation has provided the following financial data:   The company's working capital is:

Accepted Answer

A) $671,000 
B) $665,000 
C) $418,000 
D) $983,000 
A) $671,000 
B) $665,000 
C) $418,000 
D) $983,000

Question 3

Symons Corporation has provided the following financial data:     Dividends on common stock during Year 2 totaled $2,500. The market price of common stock at the end of Year 2 was $2.01 per share. The company's book value per share at the end of Year 2 is closest to:

Accepted Answer

A) $17.94 per share 
B) $28.26 per share 
C) $0.19 per share 
D) $11.54 per share 
A) $17.94 per share 
B) $28.26 per share 
C) $0.19 per share 
D) $11.54 per share

Question 4

Jaquez Corporation has provided the following financial data:     Dividends on common stock during Year 2 totaled $10,000. The market price of common stock at the end of Year 2 was $5.45 per share.
Required:
a. What is the company's times interest earned for Year 2?
b. What is the company's debt-to-equity ratio at the end of Year 2?
c. What is the company's equity multiplier at the end of Year 2?
d. What is the company's net profit margin percentage for Year 2?
e. What is the company's gross margin percentage for Year 2?
f. What is the company's return on total assets for Year 2?
g. What is the company's return on equity for Year 2?
h. What is the company's earnings per share for Year 2?
i. What is the company's price-earnings ratio for Year 2?
j. What is the company's dividend payout ratio for Year 2?
k. What is the company's dividend yield ratio for Year 2?
l. What is the company's book value per share at the end of Year 2?

Accepted Answer

a. Times interest earned = Net operating

Question 5

Recher Corporation's common stock has a par value of $3 per share and has been stable at a total value of $270,000 on the company's balance sheet for several years. The total stockholders' equity at the end of this year was $1,023,000 and at the beginning of the year was $1,010,000. Net income for the year was $17,500. Dividends on common stock during the year totaled $4,500. The market price of common stock at the end of the year was $3.76 per share. The company's dividend payout ratio is closest to:

Accepted Answer

A) 1.3% 
B) 1.7% 
C) 17.1% 
D) 26.3% 
A) 1.3% 
B) 1.7% 
C) 17.1% 
D) 26.3%

Question 6

Kopas Corporation has provided the following data: $$\begin{array} { | l r | r | } 
\hline & \text { This Year } & \text { Last Year } \
\hline \text { Accounts receivable } & \$ 89,000 & \$ 107,000 \
\hline \text { Inventory } & \$ 160,000 & \$ 156,000 \
\hline \text { Sales on account } & \$ 627,000 & \
\hline \text { Cost of goods sold } & \$ 488,000 & \
\hline
\end{array}$$ The inventory turnover for this year is closest to:

Accepted Answer

A) 3.09 
B) 0.98 
C) 1.03 
D) 3.05 
A) 3.09 
B) 0.98 
C) 1.03 
D) 3.05

Question 7

Data from Dunshee Corporation's most recent balance sheet appear below:   Sales on account in Year 2 amounted to $1,170 and the cost of goods sold was $730. The current ratio at the end of Year 2 is closest to:

Accepted Answer

A) 0.38 
B) 2.17 
C) 0.94 
D) 0.40 
A) 0.38 
B) 2.17 
C) 0.94 
D) 0.40

Question 8

A high price-earnings ratio means that investors are willing to pay a premium for the company's stock.

Accepted Answer

A) True 
 B)False

Question 9

The formula for the average sale period is: Average sale period = Accounts receivable turnover ÷ Inventory turnover.

Accepted Answer

A) True 
 B)False

Question 10

Neef Corporation has provided the following financial data from its balance sheet and income statement:     The company's net profit margin percentage for Year 2 is closest to:

Accepted Answer

A) 37.3% 
B) 2.6% 
C) 1.4% 
D) 0.9% 
A) 37.3% 
B) 2.6% 
C) 1.4% 
D) 0.9%

Question 11

Groeneweg Corporation has provided the following data:   Dividends on common stock during Year 2 totaled $4,500. The market price of common stock at the end of Year 2 was $9.45 per share. The company's dividend payout ratio for Year 2 is closest to:

Accepted Answer

A) 8.7% 
B) 13.4% 
C) 4.5% 
D) 1.0% 
A) 8.7% 
B) 13.4% 
C) 4.5% 
D) 1.0%

Question 12

Spomer Corporation's inventory at the end of Year 2 was $114,000 and its inventory at the end of Year 1 was $120,000. Cost of goods sold amounted to $710,000 in Year 2. The company's inventory turnover for Year 2 is closest to:

Accepted Answer

A) 5.92 
B) 1.05 
C) 6.07 
D) 6.23 
A) 5.92 
B) 1.05 
C) 6.07 
D) 6.23

Question 13

If the acid-test ratio is less than one, then paying off some current liabilities with cash will increase the acid-test (quick) ratio.

Accepted Answer

A) True 
 B)False

Question 14

Vertical analysis of financial statements is accomplished by preparing common-size statements.

Accepted Answer

A) True 
 B)False

Question 15

Broch Corporation's income statement appears below:   The company's times interest earned is closest to:

Accepted Answer

A) 4.87 
B) 1.41 
C) 3.16 
D) 2.16 
A) 4.87 
B) 1.41 
C) 3.16 
D) 2.16

Question 16

Data from Dalpiaz Corporation's most recent balance sheet and income statement appear below:   Required:
Compute the average collection period for this year:

Accepted Answer

Average collection period = 365 days ÷ A

Question 17

If a company's return on assets is substantially lower than its cost of borrowing, then the common stockholders would normally want the company to have a relatively high debt/equity ratio.

Accepted Answer

A) True 
 B)False

Question 18

Lasch Corporation has provided the following financial data from its balance sheet and income statement:     The company's equity multiplier at the end of Year 2 is closest to:

Accepted Answer

A) 1.60 
B) 1.68 
C) 0.63 
D) 0.60 
A) 1.60 
B) 1.68 
C) 0.63 
D) 0.60

Question 19

Shipley Corporation has provided the following data from its most recent balance sheet: $$\begin{array} { | l | l | } 
\hline \text { Total assets } & \$ 760,000 \
\hline \text { Total liabilities } & \$ 590,000 \
\hline \text { Total stockholders' equity } & \$ 170,000 \
\hline
\end{array}$$ The debt-to-equity ratio is closest to:

Accepted Answer

A) 0.29 
B) 3.47 
C) 0.22 
D) 0.78 
A) 0.29 
B) 3.47 
C) 0.22 
D) 0.78

Question 20

To increase total asset turnover, management must either increase sales or reduce total stockholders' equity.

Accepted Answer

A) True 
 B)False

Nickolls Corporation has provided the following financial data: The company's current ratio is closest to:

Mayfield Corporation has provided the following financial data: The company's working capital is:

Symons Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $2,500. The market price of common stock at the end of Year 2 was $2.01 per share. The company's book value per share at the end of Year 2 is closest to:

Kopas Corporation has provided the following data: This Year Last Year Accounts receivable \ 89,000 \ 107,000 Inventory \ 160,000 \ 156,000 Sales on account \ 627,000 Cost of goods sold \ 488,000 The inventory turnover for this year is closest to:

Data from Dunshee Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,170 and the cost of goods sold was $730. The current ratio at the end of Year 2 is closest to:

A high price-earnings ratio means that investors are willing to pay a premium for the company's stock.

The formula for the average sale period is: Average sale period = Accounts receivable turnover ÷ Inventory turnover.

Neef Corporation has provided the following financial data from its balance sheet and income statement: The company's net profit margin percentage for Year 2 is closest to:

Groeneweg Corporation has provided the following data: Dividends on common stock during Year 2 totaled $4,500. The market price of common stock at the end of Year 2 was $9.45 per share. The company's dividend payout ratio for Year 2 is closest to:

Spomer Corporation's inventory at the end of Year 2 was $114,000 and its inventory at the end of Year 1 was $120,000. Cost of goods sold amounted to $710,000 in Year 2. The company's inventory turnover for Year 2 is closest to:

If the acid-test ratio is less than one, then paying off some current liabilities with cash will increase the acid-test (quick) ratio.

Vertical analysis of financial statements is accomplished by preparing common-size statements.

Broch Corporation's income statement appears below: The company's times interest earned is closest to:

Data from Dalpiaz Corporation's most recent balance sheet and income statement appear below: Required: Compute the average collection period for this year:

If a company's return on assets is substantially lower than its cost of borrowing, then the common stockholders would normally want the company to have a relatively high debt/equity ratio.

Lasch Corporation has provided the following financial data from its balance sheet and income statement: The company's equity multiplier at the end of Year 2 is closest to:

Shipley Corporation has provided the following data from its most recent balance sheet: Total assets \ 760,000 Total liabilities \ 590,000 Total stockholders' equity \ 170,000 The debt-to-equity ratio is closest to:

To increase total asset turnover, management must either increase sales or reduce total stockholders' equity.

Managerial Accounting and Cost Concepts

Job-Order Costing

Activity-Based Costing

Process Costing

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Master Budgeting

Flexible Budgets, Standard Costs, and Variance Analysis

Performance Measurement in Decentralized Organizations

Differential Analysis: the Key to Decision Making

Capital Budgeting Decisions

Statement of Cash Flows

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Journal Entries to Record Variances

The Concept of Present Value

The Direct Method of Determining the Net Cash Provided by Operating Activities

Filters

Exam 13: Financial Statement Analysis

Nickolls Corporation has provided the following financial data: The company's current ratio is closest to:

Mayfield Corporation has provided the following financial data: The company's working capital is:

Symons Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $2,500. The market price of common stock at the end of Year 2 was $2.01 per share. The company's book value per share at the end of Year 2 is closest to:

Kopas Corporation has provided the following data: This Year Last Year Accounts receivable \ 89,000 \ 107,000 Inventory \ 160,000 \ 156,000 Sales on account \ 627,000 Cost of goods sold \ 488,000 The inventory turnover for this year is closest to:

Data from Dunshee Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,170 and the cost of goods sold was $730. The current ratio at the end of Year 2 is closest to:

A high price-earnings ratio means that investors are willing to pay a premium for the company's stock.

The formula for the average sale period is: Average sale period = Accounts receivable turnover ÷ Inventory turnover.

Neef Corporation has provided the following financial data from its balance sheet and income statement: The company's net profit margin percentage for Year 2 is closest to:

Groeneweg Corporation has provided the following data: Dividends on common stock during Year 2 totaled $4,500. The market price of common stock at the end of Year 2 was $9.45 per share. The company's dividend payout ratio for Year 2 is closest to:

Spomer Corporation's inventory at the end of Year 2 was $114,000 and its inventory at the end of Year 1 was $120,000. Cost of goods sold amounted to $710,000 in Year 2. The company's inventory turnover for Year 2 is closest to:

If the acid-test ratio is less than one, then paying off some current liabilities with cash will increase the acid-test (quick) ratio.

Vertical analysis of financial statements is accomplished by preparing common-size statements.

Broch Corporation's income statement appears below: The company's times interest earned is closest to:

Data from Dalpiaz Corporation's most recent balance sheet and income statement appear below: Required: Compute the average collection period for this year:

If a company's return on assets is substantially lower than its cost of borrowing, then the common stockholders would normally want the company to have a relatively high debt/equity ratio.

Lasch Corporation has provided the following financial data from its balance sheet and income statement: The company's equity multiplier at the end of Year 2 is closest to:

Shipley Corporation has provided the following data from its most recent balance sheet: Total assets \ 760,000 Total liabilities \ 590,000 Total stockholders' equity \ 170,000 The debt-to-equity ratio is closest to:

To increase total asset turnover, management must either increase sales or reduce total stockholders' equity.

Managerial Accounting and Cost Concepts

Job-Order Costing

Activity-Based Costing

Process Costing

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Master Budgeting

Flexible Budgets, Standard Costs, and Variance Analysis

Performance Measurement in Decentralized Organizations

Differential Analysis: the Key to Decision Making

Capital Budgeting Decisions

Statement of Cash Flows

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Journal Entries to Record Variances

The Concept of Present Value

The Direct Method of Determining the Net Cash Provided by Operating Activities

Filters