Exam 14: Capital Budgeting Decisions

Macmillan Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $7,200.The market price of common stock at the end of Year 2 was $3.69 per share. The company's acid-test (quick)ratio at the end of Year 2 is closest to:

Irawaddy Company,a retailer,had cost of goods sold of $230,000 last year.The beginning inventory balance was $24,000 and the ending inventory balance was $22,000.The company's average sale period was closest to:

Vogelsberg Corporation has provided the following financial data: The company's net operating income in Year 2 was $62,308;its interest expense was $12,000;and its net income was $32,700.Dividends on common stock during Year 2 totaled $2,700.The market price of common stock at the end of Year 2 was $6.37 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 earnings per share for Year 2? e.What is the company's price-earnings ratio for Year 2? f.What is the company's dividend payout ratio for Year 2? g.What is the company's dividend yield ratio for Year 2? h.What is the company's book value per share at the end of Year 2?

Dahn Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $1,600.The market price of common stock at the end of Year 2 was $2.37 per share. The company's average sale period (turnover in days)for Year 2 is closest to:

Liquidity refers to how quickly an asset can be converted into cash.

Doonan Corporation has provided the following financial data from its balance sheet and income statement: The market price of common stock at the end of Year 2 was $4.79 per share. The company's earnings per share for Year 2 is closest to:

Guttery Corporation has provided the following financial data from its balance sheet: Sales on account in Year 2 totaled $1,450,000 and cost of goods sold totaled $900,000. The company's average sale period (turnover in days)for Year 2 is closest to:

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

Nickolls Corporation has provided the following financial data: The company's acid-test (quick)ratio is closest to:

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:

A portion of Lapore Corporation's Balance Sheet appears below: The company's debt-to-equity ratio at the end of Year 2 is closest to:

Kopas Corporation has provided the following data: The inventory turnover for this year is closest to:

Financial statements for Rardin Corporation appear below: Required: Compute the following for Year 2: a.Current ratio. b.Acid-test ratio. c.Average collection period. d.Inventory turnover. e.Times interest earned. f.Debt-to-equity ratio.

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:

Cameron Corporation had 50,000 shares of common stock issued and outstanding that it originally issued for $40 per share.The following information pertains to these shares: The total dividend on common stock for the year was $400,000.Cameron Corporation's dividend yield ratio for the year was:

Valdovinos Corporation has provided the following data: The company's net profit margin percentage is closest to:

Burdick Corporation has provided the following financial data from its balance sheet: Sales (all on account)in Year 2 amounted to $1,410,000 and the cost of goods sold was $860,000. The company's operating cycle 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:

When computing the return on equity,retained earnings should be excluded from the average total stockholders' equity.

All other things the same,if a company uses long-term debt to purchase land to develop in the future,the company's return on total assets will decrease.