Exam 14: Financial Statement Analysis

A company's current ratio and acid-test ratios are both greater than 1.Issuing bonds to finance purchase of an office building with the first installment of the bonds due in the current year 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 book value per share at the end of Year 2 is closest to:

Guedea Corporation's most recent balance sheet and income statement appear below: Dividends on common stock during Year 2 totaled $40 thousand.Dividends on preferred stock totaled $10 thousand.The market price of common stock at the end of Year 2 was $5.22 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.

Crandler Company's net income last year was $60,000.The company paid preferred dividends of $20,000 and its average common stockholders' equity was $500,000.The company's return on common stockholders' equity for the year was closest to:

Sweetman Corporation has provided the following financial data (in thousands of dollars): Year 2 Year 1 Total assets. \ 1,310 \ 1,290 Stockholders' equity: Preferred stock, \ 100 par value, 10\% \ 200 \ 200 Common stock, \1 par value \ 200 \ 200 Additional paid-in capital--common stock \ 160 \ 160 Retained earnings \ 350 \ 330 Net income for Year 2 was $120 thousand.Interest expense was $25 thousand.The tax rate was 30%.Dividends on common stock during Year 2 totaled $80 thousand.Dividends on preferred stock totaled $20 thousand.The market price of common stock at the end of Year 2 was $4.75 per share. Required: Compute the following for Year 2: a.Earnings per share (of common stock). b.Price-earnings ratio. c.Dividend payout ratio. d.Dividend yield ratio. e.Return on total assets. f.Return on common stockholders' equity. g.Book value per share.

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 return on total assets for Year 2 was closest to:

Negative working capital indicates that the sum of all current assets is negative.

Data from Adame Corporation's most recent balance sheet and income statement appear below: This Year Last Year Accounts receivable \ 107,000 \ 116,000 Inventory \ 204,000 \ 174,000 Sales on account \ 799,000 Cost of goods sold \ 524,000 Required: Compute the average collection period for this year:

Data from Kooistra Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,270 and the cost of goods sold was $770. -The average sale period for Year 2 is closest to:

Millage Corporation has provided the following data: This Year Last Year Accounts receivable \ 125,000 Inventory \ 156,000 Sales on account Cost of goods sold Required: Compute the accounts receivable turnover for this year.Show your work!

Last year the return on total assets in Jeffrey Company was 8.5%.The total assets were 2.9 million at the beginning of the year and 3.1 million at the end of the year.The tax rate was 30%,interest expense totaled $110 thousand,and sales were $5.2 million.Net income for the year was:

Dehne Corporation has provided the following data from its most recent income statement: Net operating income \ 75,000 Interest expense. \ 32,000 Net income before taxes \ 43,000 Income taxes. \ 13,000 Net income. \ 30,000 Required: Compute the times interest earned ratio.Show your work!

Data from Kooistra Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,270 and the cost of goods sold was $770. -The average collection period for Year 2 is closest to:

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 total assets for Year 2 is closest to:

Issuing new shares of stock in a five-for-one split of common stock would:

The following selected data are for Geneva Company: -Geneva Company's return on common stockholders' equity for Year 2 is closest to:

Data from Ankeny Corporation's most recent balance sheet and income statement appear below: This Year Last Year Accounts receivable \ 119,000 \ 102,000 Inventory \ 188,000 \ 175,000 Sales on account \ 803,000 Cost of goods sold \ 641,000 Required: Compute the average sale period for this year:

Dividing the market price of a share of stock by the dividends per share gives the price-earnings ratio.

Cadarette Corporation's most recent balance sheet and income statement appear below: Dividends on common stock during Year 2 totaled $40 thousand. Dividends on preferred stock totaled $10 thousand. The market price of common stock at the end of Year 2 was $17.73 per share. -The dividend yield ratio for Year 2 is closest to:

Excerpts from Ruden Corporation's most recent balance sheet appear below: Year 2 Year 1 Preferred stock \ 200,000 \ 200,000 Common stock 400,000 400,000 Additional paid-in capital--common stock 450,000 450,000 Retained earnings 470,000 430,000 Total stockholders' equity \ 1,520,000 \ 1,480,000 Net income for Year 2 was $102,000.Dividends on common stock were $47,000 in total and dividends on preferred stock were $15,000 in total. Required: Compute the return on common stockholders' equity.Show your work!