Exam 15: Financial Statement Analysis

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 working capital at the end of Year 2 is:

Rawe Corporation's accounts receivable at the end of Year 2 was $329,000 and its accounts receivable at the end of Year 1 was $280,000. Sales, all on account, amounted to $1,350,000 in Year 2. The company's average collection period (age of receivables) for Year 2 is closest to:

When fixed costs are included in the cost of goods sold, the gross margin percentage should increase and decrease with sales volume.

Braverman Corporation's net income last year was $75,000 and its interest expense was $10,000. Total assets at the beginning of the year were $650,000 and total assets at the end of the year were $610,000. The corporation's income tax rate was 30%. The corporation's return on total assets for the year was closest to:

Data from Yochem Corporation's most recent balance sheet appear below: Required: Compute the company's acid-test ratio. Show your work!

Financial statements for Praeger Corporation appear below: Dividends during Year 2 totaled $45 thousand. The market price of a share of common stock on December 31, Year 2 was $30. Required: Compute the following for Year 2: a. Return on total assets. b. Working capital. c. Current ratio. d. Acid-test ratio. e. Accounts receivable turnover. f. Average collection period. g. Inventory turnover. h. Average sale period. i. Times interest earned. j. Debt-to-equity ratio.

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 accounts receivable turnover for Year 2 is closest to:

A company's current ratio is greater than 1. Purchasing raw materials on credit would:

Data from Dalpiaz Corporation's most recent balance sheet and income statement appear below: Required: Compute the average collection period for this year: