Exam 15: Financial Statement Analysis

Lasch Corporation has provided the following financial data from its balance sheet and income statement: -The company's times interest earned for Year 2 is closest to:

Financial statements for Maraby Corporation appear below: -Maraby Corporation's acid-test ratio at the end of Year 2 was closest to:

Financial statements for Narstad Corporation appear below: -Narstad Corporation's debt-to-equity ratio at the end of Year 2 was 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 is:

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 acid-test (quick) ratio is closest to:

Mcrae Corporation's total current assets are $380,000, its noncurrent assets are $500,000, its total current liabilities are $340,000, its long-term liabilities are $250,000, and its stockholders' equity is $290,000. Working capital is:

Neelty Corporation has interest expense of $16,000, sales of $600,000, a tax rate of 30%, and after-tax net income of $56,000. The company's times interest earned ratio is closest to:

Jester Corporation's most recent income statement appears below: The beginning balance of total assets was $360,000 and the ending balance was $320,000. The return on total assets is closest to:

Kopas Corporation has provided the following data: This Year Last Year Accounts receivable. \ 89,000 \1 07,000 Inventory. \ 160,000 \1 56,000 Sales on account. \ 627,000 Cost of goods sold \ 488,000 The inventory turnover for this year is closest to:

Zack Company has a current ratio of 2.5. What will be the effect of a purchase of inventory with cash on the acid-test ratio and on working capital? Acid-Test Ratio Working Capital A) decrease decrease B) decrease no effect C) no effect decrease D) no effect no effect

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 gross margin percentage for Year 2 is closest to:

Garrott Corporation's total assets were $1,505,000 at the end of Year 2 and $1,520,000 at the end of Year 1. Its total stockholders' equity was $1,197,000 at the end of Year 2 and $1,180,000 at the end of Year 1. -The company's net profit margin percentage for Year 2 is closest to:

Sehrt Corporation has provided the following financial data: The company's net income for Year 2 was $44,000. Dividends on common stock during Year 2 totaled $11,000. The market price of common stock at the end of Year 2 was $6.29 per share. Required: a. What is the company's earnings per share for Year 2? b. What is the company's price-earnings ratio for Year 2? c. What is the company's dividend payout ratio for Year 2? d. What is the company's dividend yield ratio for Year 2? e. What is the company's book value per share at the end of Year 2?

Granger Corporation had $180,000 in sales on account last year. The beginning accounts receivable balance was $10,000 and the ending accounts receivable balance was $18,000. The corporation's average collection period was 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 acid-test (quick) ratio at the end of Year 2 is closest to:

Last year Javer Corporation had a net income of $200,000, income tax expense of $74,000, and interest expense of $20,000. The corporation's times interest earned was 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 inventory turnover for Year 2 is closest to:

Feiler Corporation has total current assets of $483,000, total current liabilities of $347,000, total stockholders' equity of $1,057,000, total net plant and equipment of $1,031,000, total assets of $1,514,000, and total liabilities of $457,000. The company's current ratio is closest to:

Recher Corporation's common stock has a par value of $3 per share and has been stable at a total value of $270,000 on the company's balance sheet for several years. The total stockholders' equity at the end of this year was $1,023,000 and at the beginning of the year was $1,010,000. Net income for the year was $17,500. Dividends on common stock during the year totaled $4,500. The market price of common stock at the end of the year was $3.76 per share. -The company's price-earnings ratio is closest to:

Lasch Corporation has provided the following financial data from its balance sheet and income statement: -The company's debt-to-equity ratio at the end of Year 2 is closest to: