Cameron Corporation had 50,000 shares of common stock issued and outstanding that it originally issued for $40 per share. The following information pertains to these shares: $\begin{array}{ll} \text { Book value at end of current year } & \$ 70 \\ \text { Market value, beginning of current year} & \$ 85 \\ \text { Market value, end of current year } & \$ 90 \end{array}$ The total dividend on common stock for the year was $400,000. Cameron Corporation's dividend yield ratio for the year was:

A) 20.00% B) 11.43% C) 9.41% D) 8.89% A) 20.00% B) 11.43% C) 9.41% D) 8.89%

Shipley Corporation has provided the following data from its most recent balance sheet: $\begin{array}{lr} \text {Total assets. }&\$760,000\\ \text {Total liabilities }&\$590,000\\ \text {Total stockholders' equity }&\$170,000\\ \end{array}$ The debt-to-equity ratio is closest to:

A) 0.29 B) 3.47 C) 0.22 D) 0.78 A) 0.29 B) 3.47 C) 0.22 D) 0.78

Exam 15: Financial Statement Analysis

Pascarelli Corporation's inventory at the end of Year 2 was $122,000 and its inventory at the end of Year 1 was $150,000. Cost of goods sold amounted to $870,000 in Year 2. The company's average sale period (turnover in days) for Year 2 is closest to:

(Multiple Choice)

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Question 241

Kestner Corporation has provided the following financial data: Required: a. What is the company's accounts receivable turnover for Year 2? b. What is the company's average collection period (age of receivables) for Year 2? c. What is the company's inventory turnover for Year 2? d. What is the company's average sale period (turnover in days) for Year 2? e. What is the company's operating cycle for Year 2? f. What is the company's total asset turnover for Year 2?

(Essay)

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Question 242

The market price of Friden Company's common stock increased from $15 to $18. Earnings per share of common stock remained unchanged. The company's price-earnings ratio would:

(Multiple Choice)

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Question 243

All other things the same, when a customer purchases an item for cash, the accounts receivable turnover ratio increases.

(True/False)

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Question 244

Jaquez Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $10,000. The market price of common stock at the end of Year 2 was $5.45 per share. Required: a. What is the company's times interest earned for Year 2? b. What is the company's debt-to-equity ratio at the end of Year 2? c. What is the company's equity multiplier at the end of Year 2? d. What is the company's net profit margin percentage for Year 2? e. What is the company's gross margin percentage for Year 2? f. What is the company's return on total assets for Year 2? g. What is the company's return on equity for Year 2? h. What is the company's earnings per share for Year 2? i. What is the company's price-earnings ratio for Year 2? j. What is the company's dividend payout ratio for Year 2? k. What is the company's dividend yield ratio for Year 2? l. What is the company's book value per share at the end of Year 2?

(Essay)

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Question 245

Cameron Corporation had 50,000 shares of common stock issued and outstanding that it originally issued for $40 per share. The following information pertains to these shares: Book value at end of current year \ 70 Market value, beginning of current year \ 85 Market value, end of current year \ 90 The total dividend on common stock for the year was $400,000. Cameron Corporation's dividend yield ratio for the year was:

(Multiple Choice)

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Question 246

Brill Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $2,100. The market price of common stock at the end of Year 2 was $2.32 per share. Required: a. What is the company's times interest earned for Year 2? b. What is the company's debt-to-equity ratio at the end of Year 2? c. What is the company's equity multiplier at the end of Year 2? d. What is the company's net profit margin percentage for Year 2? e. What is the company's gross margin percentage for Year 2? f. What is the company's return on total assets for Year 2? g. What is the company's return on equity for Year 2? h. What is the company's earnings per share for Year 2? i. What is the company's price-earnings ratio for Year 2? j. What is the company's dividend payout ratio for Year 2? k. What is the company's dividend yield ratio for Year 2? l. What is the company's book value per share at the end of Year 2?

(Essay)

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Question 247

Jepson Corporation's most recent income statement appears below: Required: Compute the gross margin percentage.

(Essay)

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Question 248

Karma Corporation has total assets of $190,000 and total liabilities of $90,000. The corporation's debt-to-equity ratio is closest to:

(Multiple Choice)

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Question 249

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:

(Multiple Choice)

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Question 250

For Year 2, Etzkorn Corporation's sales were $1,480,000, its gross margin was $580,000, its net operating income was $63,714, its net income before taxes was $42,714, and its net income was $29,900. The company's total stockholders' equity at the end of Year 2 amounted to $829,000 and at the end of Year 1 to $800,000. The company's return on equity for Year 2 is closest to:

(Multiple Choice)

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Question 251

All other things the same, when a company increases its inventories in anticipation of later higher sales, the accounts receivable turnover ratio for the current period increases.

(True/False)

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Question 252

Arkin Corporation's total current assets are $290,000, its noncurrent assets are $520,000, its total current liabilities are $210,000, its long-term liabilities are $420,000, and its stockholders' equity is $180,000. Required: Compute the company's working capital. Show your work!

(Essay)

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Question 253

If a company's operating cycle is much longer than its average payment period for suppliers, it creates the need to borrow money to fund its inventories and accounts receivable.

(True/False)

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Question 254

Dratif Corporation's working capital is $33,000 and its current liabilities are $80,000. The corporation's current ratio is closest to:

(Multiple Choice)

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Question 255

Dennisport Corporation has an acid-test ratio of 2.5. It has current liabilities of $40,000 and noncurrent assets of $70,000. The corporation's current assets consist of cash, marketable securities, accounts receivable, prepaid expenses, and inventory; it has no short-term notes receivable. If Dennisport's current ratio is 3.1, its inventory and prepaid expenses must be:

(Multiple Choice)

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Question 256

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

(Multiple Choice)

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Question 257

All other things the same, if the company purchases equipment on credit, this transaction would have no impact on the company's book value per share.

(True/False)

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Question 258

Shipley Corporation has provided the following data from its most recent balance sheet: Total assets. \7 60,000 Total liabilities \5 90,000 Total stockholders' equity \1 70,000 The debt-to-equity ratio is closest to:

(Multiple Choice)

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(72)

Question 259

Guttery Corporation has provided the following financial data from its balance sheet: Sales on account in Year 2 totaled $1,450,000 and cost of goods sold totaled $900,000. -The company's operating cycle for Year 2 is closest to:

(Multiple Choice)

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Question 260

Showing 241 - 260 of 289

Pascarelli Corporation's inventory at the end of Year 2 was $122,000 and its inventory at the end of Year 1 was $150,000. Cost of goods sold amounted to $870,000 in Year 2. The company's average sale period (turnover in days) for Year 2 is closest to:

The market price of Friden Company's common stock increased from $15 to $18. Earnings per share of common stock remained unchanged. The company's price-earnings ratio would:

All other things the same, when a customer purchases an item for cash, the accounts receivable turnover ratio increases.

Jepson Corporation's most recent income statement appears below: Required: Compute the gross margin percentage.

Karma Corporation has total assets of $190,000 and total liabilities of $90,000. The corporation's debt-to-equity ratio is closest to:

All other things the same, when a company increases its inventories in anticipation of later higher sales, the accounts receivable turnover ratio for the current period increases.

Arkin Corporation's total current assets are $290,000, its noncurrent assets are $520,000, its total current liabilities are $210,000, its long-term liabilities are $420,000, and its stockholders' equity is $180,000. Required: Compute the company's working capital. Show your work!

If a company's operating cycle is much longer than its average payment period for suppliers, it creates the need to borrow money to fund its inventories and accounts receivable.

Dratif Corporation's working capital is $33,000 and its current liabilities are $80,000. The corporation's current ratio is closest to:

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

All other things the same, if the company purchases equipment on credit, this transaction would have no impact on the company's book value per share.

Shipley Corporation has provided the following data from its most recent balance sheet: Total assets. \7 60,000 Total liabilities \5 90,000 Total stockholders' equity \1 70,000 The debt-to-equity ratio is closest to:

Guttery Corporation has provided the following financial data from its balance sheet: Sales on account in Year 2 totaled $1,450,000 and cost of goods sold totaled $900,000. -The company's operating cycle for Year 2 is closest to:

Master Budgeting

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Journal Entries to Record Variances

Performance Measurement in Decentralized Organizations

Transfer Pricing

Service Department Charges

Differential Analysis: the Key to Decision Making

Capital Budgeting Decisions

The Concept of Present Value

Income Taxes and the Net Present Value Method

Statement of Cash Flows

The Direct Method of Determining the Net Cash Provided by Operating Activities

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