Exam 12: 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 times-interest-earned 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 quick (or acid-test) ratio for the year 2012 is: (round to two decimal places)

Bernstein Inc. Bernstein Inc. is a local retailer. The following selected information is available from their 2011 and 2012 financial statements: Refer to the Bernstein Inc. information above. What was Bernstein's inventory turnover ratio for 2012? (round to two decimal places)

Which of the following items is not typically used to prepare financial statements?

Comparing financial statements of different companies and financial statements of the same company across time after controlling for differences in size is called:

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 accounts receivable turnover ratio for the year 2012 is: (round to two decimal places)

Cheshire Inc. had the following condensed income statements for the years ending December 31, 2012 and 2011. Required: Using horizontal analysis, complete the comparative income statement by computing dollar change ($change) and percentage change (% change). Round percentages to two decimal places.

Solvency measures a company's ability:

Hollandsworth Inc. has the following information available for 2011 and 2012: Converting the 2012 column into a common-size statement would show current assets as being:

Answer the following questions:

What is one weakness of either the current or acid-test (or quick) ratio?

Drucker Inc. has the following information available for 2011 and 2012: Performing a horizontal analysis on current assets shows that they have:

Bernstein Inc. Bernstein Inc. is a local retailer. The following selected information is available from their 2011 and 2012 financial statements: Refer to the Bernstein Inc. information above. What was Bernstein's accounts receivable turnover ratio for 2012? (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 times-interest-earned ratio for 2012 is: (round to two decimal places)

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

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

Working capital is computed as:

Which ratio would be best for measuring a company's ability to repay both principal and interest on outstanding loans from cash generated from operating activities?

Which ratio gives an indication of how investors believe a company's stock will perform in the future compared to other companies?

Which of the following is not a limitation in performing financial statement analysis on a company that uses generally accepted accounting principles?