Exam 14: Financial Statement Analysis

Financial statements for Orange Company appear below: Dividends during Year 2 totaled $156 thousand, of which $18 thousand were preferred dividends. The market price of a share of common stock on December 31, Year 2 was $100. -Orange Company's average sale period for Year 2 was closest to:

Excerpts from Tigner Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,230 and the cost of goods sold was $820. -The accounts receivable turnover for Year 2 is closest to:

Pettengill Corporation's net operating income last year was $280,000;its interest expense was $37,000;its total stockholders' equity was $920,000;and its total liabilities were $620,000. Required: Compute the following for Year 2: a.Times interest earned. b.Debt-to-equity ratio.

Financial statements for Orange Company appear below: Dividends during Year 2 totaled $156 thousand, of which $18 thousand were preferred dividends. The market price of a share of common stock on December 31, Year 2 was $100. -Orange Company's current ratio at the end of Year 2 was closest to:

The gross margin percentage is most likely to be used to assess:

Data from Kempen Corporation's most recent balance sheet and the company's income statement appear below: -The times interest earned for Year 2 is closest to:

Dieringer Corporation's most recent balance sheet and income statement appear below: -The average collection period for Year 2 is closest to:

Financial statements for Marcell Company appear below: -Marcell Company's accounts receivable turnover for Year 2 was closest to:

Excerpts from Zorra Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,370 and the cost of goods sold was $850. -The current ratio at the end of Year 2 is closest to:

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

Data from Paynter Corporation's most recent balance sheet appear below: A total of 100,000 shares of common stock and 20,000 shares of preferred stock were outstanding at the end of the year. Required: Compute the book value per share.Show your work!

Dieringer Corporation's most recent balance sheet and income statement appear below: -The average sale period for Year 2 is closest to:

Wolbers Company has an acid-test ratio of 1.4.Which of the following events will cause this ratio to decrease?

Financial leverage is negative when:

Hick Corporation's most recent balance sheet and income statement appear below: Dividends on common stock during Year 2 totaled $60 thousand. Dividends on preferred stock totaled $20 thousand. The market price of common stock at the end of Year 2 was $9.57 per share. -The dividend payout ratio for Year 2 is closest to:

Condensed financial statements for Pardin Company are given below: Pardin Company Statement of Financial Position As of December 31 The company paid total dividends of $100,000 during the year.At the end of Year 2,the company's common stock was selling for $38 per share. Required: On the basis of the information given above,fill in the blanks with the appropriate figures: Example: The current ratio at the end of Year 2 would be computed by dividing $1,080,000 by $400,000. a.The acid-test ratio at the end of Year 2 would be computed by dividing _______________ by _________________. b.The accounts receivable turnover during Year 2 would be computed by dividing _______________ by _________________. c.The inventory turnover during Year 2 would be computed by dividing _______________ by _________________. d.The times interest earned for Year 2 would be computed by dividing _______________ by _________________. e.The earnings per share of common stock for Year 2 would be computed by dividing _______________ by _________________. f.The return on total assets for Year 2 would be computed by dividing _______________ by _________________. g.The debt-to-equity ratio at the end of Year 2 would be computed by dividing _______________ by _________________. h.The dividend yield ratio would be computed by dividing _______________ by _________________. i.The return on common stockholders' equity for Year 2 would be computed by dividing _______________ by _________________. j.Whether the common stockholders gained or lost from the use of financial leverage during Year 2 would be determined by comparing the ratio computed in question ___ above to the ratio computed in question above ____.In this case,financial leverage is (positive/negative)___________________.

Park Company purchased $100,000 in inventory from its suppliers,on account.The company's acid-test ratio would:

Financial statements for Orange Company appear below: Dividends during Year 2 totaled $156 thousand, of which $18 thousand were preferred dividends. The market price of a share of common stock on December 31, Year 2 was $100. -Orange Company's return on total assets for Year 2 was closest to:

The gross margin percentage is computed by dividing the gross margin by sales.

The formula for the gross margin percentage is: