Exam 15: Financial Statement Analysis

Fayer Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $4,500. The market price of common stock at the end of Year 2 was $10.88 per share. -The company's equity multiplier at the end of Year 2 is closest to:

Kovack Corporation's net operating income in Year 2 was $66,571, net income before taxes was $46,571, and the net income was $32,600. Total common stock was $120,000 at the end of both Year 2 and Year 1. The par value of common stock is $2 per share. The company's total stockholders' equity at the end of Year 2 amounted to $962,000 and at the end of Year 1 to $930,000. The company declared and paid $600 dividends on common stock. The market price per share was $4.37. The company's dividend yield ratio for Year 2 is closest to:

Babbitt Corporation has provided the following data from its most recent income statement: Required: Compute the times interest earned ratio. Show your work!

Erastic Corporation has $14,000 in cash, $8,000 in marketable securities, $34,000 in account receivable, $40,000 in inventories, and $42,000 in current liabilities. The corporation's current assets consist of cash, marketable securities, accounts receivable, and inventory. The corporation's acid-test ratio is closest to:

Neef Corporation has provided the following financial data from its balance sheet and income statement: -The company's return on equity for Year 2 is closest to:

Financial statements for Maraby Corporation appear below: -Maraby Corporation's working capital (in thousands of dollars) at the end of Year 2 was closest to:

Excerpts from Sydner Corporation's most recent balance sheet appear below: -The inventory turnover for Year 2 is closest to:

Sabino Corporation's total common stock was $500,000 at the end of both Year 2 and Year 1. The par value of common stock is $5 per share. The company's total stockholders' equity at the end of Year 2 amounted to $1,125,000 and at the end of Year 1 to $1,090,000. The company's total liabilities and stockholders' equity at the end of Year 2 amounted to $1,581,000 and at the end of Year 1 to $1,540,000. The company's retained earnings at the end of Year 2 amounted to $545,000 and at the end of Year 1 to $510,000. The company's net income in Year 2 was $39,000. -The company's working capital at the end of Year 2 is:

A portion of Lapore Corporation's Balance Sheet appears below: Liabilities and Stockholders' Equity Year 2 Year 1 Current liabilities: Accounts payable 209,000 \ 200,000 Accrued liabilities 27,000 30,000 Notes payable, short term 94,000 90,000 Total current liabilities. 330,000 320,000 Bonds payable 280,000 280,000 Total liabilities 610,000 600,000 Stockholders' equity: Common stock, \4 par value 360,000 360,000 Additional paid-in capital--common stock 70,000 70,000 Retained eamings 589,000 570,000 Total stockholders' equity \1 ,019,000 \1 ,000,000 Total liabilities \& stockholders' equity \1 ,629,000 \1 ,600,000 The company's debt-to-equity ratio at the end of Year 2 is closest to:

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

Sabino Corporation's total common stock was $500,000 at the end of both Year 2 and Year 1. The par value of common stock is $5 per share. The company's total stockholders' equity at the end of Year 2 amounted to $1,125,000 and at the end of Year 1 to $1,090,000. The company's total liabilities and stockholders' equity at the end of Year 2 amounted to $1,581,000 and at the end of Year 1 to $1,540,000. The company's retained earnings at the end of Year 2 amounted to $545,000 and at the end of Year 1 to $510,000. The company's net income in Year 2 was $39,000. -The acid-test ratio at the end of Year 2 is closest to:

Spomer Corporation's inventory at the end of Year 2 was $114,000 and its inventory at the end of Year 1 was $120,000. Cost of goods sold amounted to $710,000 in Year 2. The company's inventory turnover for Year 2 is closest to:

Steinkraus Corporation has provided the following data: Required: Compute the accounts receivable turnover for this year. Show your work!

When a company sells used equipment for a loss, the net profit margin percentage is unaffected.

Wegener Corporation's most recent balance sheet and income statement appear below: Required: Compute the following for Year 2: a. Working capital. b. Current ratio. c. Acid-test ratio. d. Accounts receivable turnover. e. Average collection period. f. Inventory turnover. g. Average sale period.

Excerpts from Sydner Corporation's most recent balance sheet appear below: -The average sale period for Year 2 is closest to:

Kearin Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $8,000. The market price of common stock at the end of Year 2 was $2.02 per share. -The company's return on equity for Year 2 is closest to:

As the accounts receivable turnover ratio decreases, the average collection period increases.

Leflore Corporation has provided the following data: Year 2 Year 1 Common stock, \5 par value. \ 500,000 \ 500,000 Total stockholders' equity. \ 1,016,000 \ 1,010,000 Net operating income. \ 35,143 Net income before taxes \ 17,143 Net income \ 12,000 Dividends on common stock during Year 2 totaled $6,000. The market price of common stock at the end of Year 2 was $1.38 per share. The company's dividend yield ratio for Year 2 is closest to:

Neef Corporation has provided the following financial data from its balance sheet and income statement: -The company's return on total assets for Year 2 is closest to: