Exam 12: Financial Statement Analysis

Brigman Inc. has the following financial statement information for 2012 and 2011: Required: Compute the following ratios for the year ending December 31, 2012: (round to two decimal places)

Bingham Inc. is a retailer with annual sales of less that $10 million. At the end of 2012, ratio analysis is performed on Bingham's financial statements by various stakeholders. Bingham's 2012 ratios are not likely to be compared to:

Which of the following statements is true regarding ratio analysis?

As a company's inventory turnover ratio decreases from one year to the next, they will find that the number of days inventory is held before sale:

Which of the following ratios would be the best measure of profitability?

How is vertical analysis performed and how is it used in financial statement analysis?

Hardister Corp. Hardister Corp. has the following information available from its financial statements for 2012: Refer to the Hardister Corp. information above. Hardister's current ratio is: (round to two decimal places)

Partin Manufacturing Partin Manufacturing has the following information available from its 12/31/12 and 12/31/11 financial statements: Refer to the Partin Manufacturing information above. Partin's inventory turnover ratio for the year 2012 is: (round to two decimal places)

Grogan Inc. Grogan Inc. had the following information available from its 2011 and 2012 financial statements: Refer to the Grogan Inc. information above. Grogan's current ratio for 2012 is: (round to two decimal places)

Which of the following types of companies would you expect to have the highest inventory turnover ratio?

Global Corporation is a local retailer. The following selected information is available from their 2011 and 2012 financial statements: Required:

Working capital is a measure of:

On a common-size income statement, operating expenses should be stated as a percentage of:

Hardister Corp. Hardister Corp. has the following information available from its financial statements for 2012: Refer to the Hardister Corp. information above. Assuming Hardister has no preferred stock and the average number of common shares outstanding was 10,000, what would be earnings per share for 2012? (round to two decimal places)

How is horizontal analysis performed and how is it used in financial statement analysis?

Grogan Inc. Grogan Inc. had the following information available from its 2011 and 2012 financial statements: Refer to the Grogan Inc. information above. Grogan's debt-to-equity ratio for 2012 is: (round to two decimal places)

Which of the following ratios would not be the best measure of solvency?

Which of the following statements regarding financial statement analysis is true?

Morrell Inc. had the following information available from its 2011 and 2012 condensed balance sheets Required: Using horizontal analysis, complete the comparative income statement by computing dollar change ($change) and percentage change (% change). Round percentages to two decimal places.

How is the ratio of cash flow from operations to current liabilities computed and interpreted?