Exam 14: Financial Statement Analysis

Hartzog 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 $5 thousand. The market price of common stock at the end of Year 2 was $7.04 per share. -The inventory turnover for Year 2 is closest to:

Last year,Shadow Corporation's dividend on common stock was $9.90 per share and the dividend on preferred stock was $1.00 per share.The market price of common stock at the end of the year was $68.10 per share.The dividend yield ratio is closest to:

Financial statements for Larned Company appear below: Dividends during Year 2 totaled $263 thousand, of which $12 thousand were preferred dividends. The market price of a share of common stock on December 31, Year 2 was $160. -Larned Company's earnings per share of common stock for Year 2 was closest to:

A company's current ratio and acid-test ratios are both greater than 1.The collection of a current accounts receivable of $29,000 would:

Hartzog 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 $5 thousand. The market price of common stock at the end of Year 2 was $7.04 per share. -The debt-to-equity ratio at the end of Year 2 is 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 working capital at the end of Year 2 is:

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 working capital at the end of Year 2 is:

Financial statements for Larned Company appear below: Dividends during Year 2 totaled $263 thousand, of which $12 thousand were preferred dividends. The market price of a share of common stock on December 31, Year 2 was $160. -Larned Company's dividend payout ratio for Year 2 was closest to:

Data concerning Bouerneuf Company's common stock follow: Book value per share........... \ 24.00 Market value per share...... \ 18.00 Earnings per share ............. \ 6.00 Par value per share............. \ 4.00 Dividend per share ........... \ 1.00 The price-earnings ratio would be:

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 return on common stockholders' equity for Year 2 is closest to:

The following data have been taken from your company's financial records for the current year: Earnings per share \8 Market price per share. \6 0 Dividend per share \6 Book value per share. \7 5 The price-earnings ratio is:

Higgins Company presently has a current ratio of 0.6.It is currently negotiating a loan,but it has been informed it must improve its current ratio before the loan will be approved.Which of the following actions would improve its current ratio?

Selected financial data from Osterville Company for the most recent year appear below: The income tax rate is 40%. -Net operating income as a percentage of sales was:

Dieringer Corporation's most recent balance sheet and income statement appear below: -The current ratio at the end of Year 2 is closest to:

Hartzog 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 $5 thousand. The market price of common stock at the end of Year 2 was $7.04 per share. -The gross margin percentage for Year 2 is closest to:

Issuing common stock will increase a company's financial leverage.

Harbor Company,a retailer,had cost of goods sold of $170,000 last year.The beginning inventory balance was $20,000 and the ending inventory balance was $24,000.The company's inventory turnover was closest to:

Financial statements for Harwich Company for the most recent year appear below: The balances in the Cash, Accounts Receivable, Inventory, Bonds Payable, Common Stock, and Additional Paid-In Capital accounts are unchanged from the beginning of the year. A $0.75 per share dividend was declared and paid during the year. On December 31, Harwich Company's common stock was trading at $24.00 per share. -Harwich Company's dividend yield ratio for the year was closest to:

Lundberg Corporation's most recent balance sheet and income statement appear below: Dividends on common stock during Year 2 totaled $50 thousand.Dividends on preferred stock totaled $20 thousand.The market price of common stock at the end of Year 2 was $9.36 per share. Required: Compute the following for Year 2: a.Gross margin percentage. b.Earnings per share (of common stock). c.Price-earnings ratio. d.Dividend payout ratio. e.Dividend yield ratio. f.Return on total assets. g.Return on common stockholders' equity. h.Book value per share. i.Working capital. j.Current ratio. k.Acid-test ratio. l.Accounts receivable turnover. m.Average collection period. n.Inventory turnover. o.Average sale period. p.Times interest earned. q.Debt-to-equity ratio.

As the inventory turnover increases,the number of days required to sell the inventory one time also increases.