Question 1

Financial statements for Maraby Corporation appear below:

-Maraby Corporation's current ratio at the end of Year 2 was closest to:

Accepted Answer

A) 1.34 
B) 1.72 
C) 0.60 
D) 0.44 
A) 1.34 
B) 1.72 
C) 0.60 
D) 0.44

Question 2

Two-Rivers Inc. (TRI) manufactures a variety of consumer products. The company's founders have run the company for thirty years and are now interested in retiring. Consequently, they are seeking a purchaser, and a group of investors is looking into the acquisition of TRI. To evaluate its financial stability, TRI was requested to provide its latest financial statements and selected financial ratios. Summary information provided by TRI is presented below.       Required:
a. Calculate the select financial ratios for the fiscal year Year 2.
b. Interpret what each of these financial ratios means in terms of TRI's financial stability and operating efficiency.

Accepted Answer

a. The calculation of selected financial

Question 3

A company's current ratio and an acid-test ratio are both greater than 1. Payment of an account payable would:

Accepted Answer

A) increase the current ratio but the acid-test ratio would not be affected. 
B) increase the acid-test ratio but the current ratio would not be affected. 
C) increase both the current and acid-test ratios. 
D) decrease both the current and acid-test ratios. 
A) increase the current ratio but the acid-test ratio would not be affected. 
B) increase the acid-test ratio but the current ratio would not be affected. 
C) increase both the current and acid-test ratios. 
D) decrease both the current and acid-test ratios.

Question 4

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

Accepted Answer

Average sale period = 365 days ÷ Invento

Question 5

Deflorio Corporation's inventory at the end of Year 2 was $156,000 and its inventory at the end of Year 1 was $140,000. The company's total assets at the end of Year 2 were $1,416,000 and its total assets at the end of Year 1 were $1,390,000. Sales amounted to $1,320,000 in Year 2. The company's total asset turnover for Year 2 is closest to:

Accepted Answer

A) 0.94 
B) 1.06 
C) 5.38 
D) 0.19 
A) 0.94 
B) 1.06 
C) 5.38 
D) 0.19

Question 6

Data from Lheureux Corporation's most recent balance sheet and the company's income statement appear below:

-The times interest earned for Year 2 is closest to:

Accepted Answer

A) 2.22 
B) 4.17 
C) 3.17 
D) 5.95 
A) 2.22 
B) 4.17 
C) 3.17 
D) 5.95

Question 7

Uhri Corporation has provided the following data:   Dividends on common stock during Year 2 totaled $4,000. The market price of common stock at the end of Year 2 was $6.08 per share. The company's dividend payout ratio for Year 2 is closest to:

Accepted Answer

A) 7.8% 
B) 1.3% 
C) 11.1% 
D) 0.8% 
A) 7.8% 
B) 1.3% 
C) 11.1% 
D) 0.8%

Question 8

Neiger Corporation has provided the following financial data:     Required:
a. What is the company's working capital at the end of Year 2?
b. What is the company's current ratio at the end of Year 2?
c. What is the company's acid-test (quick) ratio at the end of Year 2?
d. What is the company's times interest earned for Year 2?
e. What is the company's debt-to-equity ratio at the end of Year 2?
f. What is the company's equity multiplier at the end of Year 2?

Accepted Answer

a. Working capital = Current assets - Cu

Question 9

Sidell Corporation's most recent balance sheet and income statement appear below:     Required:
Compute the following for Year 2:
a. Times interest earned.
b. Debt-to-equity ratio.

Accepted Answer

a. Times interest earned = Net

Question 10

The dividend payout ratio is equal to the dividend per share divided by the earnings per share.

Accepted Answer

A) True 
 B)False

Question 11

An increase in the number of shares of common stock outstanding will increase a company's price-earnings ratio if the market price per share remains unchanged.

Accepted Answer

A) True 
 B)False

Question 12

Doonan Corporation has provided the following financial data from its balance sheet and income statement:
 
The market price of common stock at the end of Year 2 was $4.79 per share.
-The company's return on total assets for Year 2 is closest to:

Accepted Answer

A) 1.77% 
B) 2.46% 
C) 1.80% 
D) 2.42% 
A) 1.77% 
B) 2.46% 
C) 1.80% 
D) 2.42%

Question 13

The following information relates to Conejo Corporation for last year:   What is Conejo's price-earnings ratio for last year?

Accepted Answer

A) 1.6 
B) 2.4 
C) 8.0 
D) 2.0 
A) 1.6 
B) 2.4 
C) 8.0 
D) 2.0

Question 14

Frantic Corporation had $130,000 in sales on account last year. The beginning accounts receivable balance was $10,000 and the ending accounts receivable balance was $16,000. The corporation's accounts receivable turnover was closest to:

Accepted Answer

A) 5.00 
B) 13.00 
C) 10.00 
D) 8.13 
A) 5.00 
B) 13.00 
C) 10.00 
D) 8.13

Question 15

Spincic Corporation has provided the following data:   The market price of common stock at the end of Year 2 was $4.13 per share. The company's price-earnings ratio for Year 2 is closest to:

Accepted Answer

A) 0.52 
B) 8.10 
C) 6.16 
D) 12.52 
A) 0.52 
B) 8.10 
C) 6.16 
D) 12.52

Question 16

Medina Corporation has provided the following financial data:     Dividends on common stock during Year 2 totaled $2,000. The market price of common stock at the end of Year 2 was $1.49 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?

Accepted Answer

a. Times interest earned = Net operating

Question 17

Dahn Corporation has provided the following financial data:

Dividends on common stock during Year 2 totaled $1,600. The market price of common stock at the end of Year 2 was $2.37 per share.
-The company's average sale period (turnover in days) for Year 2 is closest to:

Accepted Answer

A) 226.5 days 
B) 60.1 days 
C) 40.0 days 
D) 64.4 days 
A) 226.5 days 
B) 60.1 days 
C) 40.0 days 
D) 64.4 days

Question 18

Tobia Corporation has provided the following financial data:     Dividends on common stock during Year 2 totaled $6,300. The market price of common stock at the end of Year 2 was $1.78 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 earnings per share for Year 2?
e. What is the company's price-earnings ratio for Year 2?
f. What is the company's dividend payout ratio for Year 2?
g. What is the company's dividend yield ratio for Year 2?
h. What is the company's book value per share at the end of Year 2?

Accepted Answer

a. Times interest earned = Net operating

Question 19

Symons Corporation has provided the following financial data:

Dividends on common stock during Year 2 totaled $2,500. The market price of common stock at the end of Year 2 was $2.01 per share.
-The company's dividend yield ratio for Year 2 is closest to:

Accepted Answer

A) 1.0% 
B) 18.4% 
C) 26.3% 
D) 2.5% 
A) 1.0% 
B) 18.4% 
C) 26.3% 
D) 2.5%

Question 20

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 book value per share at the end of Year 2 is closest to:

Accepted Answer

A) $0.39 per share 
B) $15.81 per share 
C) $11.25 per share 
D) $5.45 per share 
A) $0.39 per share 
B) $15.81 per share 
C) $11.25 per share 
D) $5.45 per share

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

A company's current ratio and an acid-test ratio are both greater than 1. Payment of an account payable would:

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

Data from Lheureux Corporation's most recent balance sheet and the company's income statement appear below: -The times interest earned for Year 2 is closest to:

Uhri Corporation has provided the following data: Dividends on common stock during Year 2 totaled $4,000. The market price of common stock at the end of Year 2 was $6.08 per share. The company's dividend payout ratio for Year 2 is closest to:

Sidell Corporation's most recent balance sheet and income statement appear below: Required: Compute the following for Year 2: a. Times interest earned. b. Debt-to-equity ratio.

The dividend payout ratio is equal to the dividend per share divided by the earnings per share.

An increase in the number of shares of common stock outstanding will increase a company's price-earnings ratio if the market price per share remains unchanged.

Doonan Corporation has provided the following financial data from its balance sheet and income statement: The market price of common stock at the end of Year 2 was $4.79 per share. -The company's return on total assets for Year 2 is closest to:

The following information relates to Conejo Corporation for last year: What is Conejo's price-earnings ratio for last year?

Frantic Corporation had $130,000 in sales on account last year. The beginning accounts receivable balance was $10,000 and the ending accounts receivable balance was $16,000. The corporation's accounts receivable turnover was closest to:

Spincic Corporation has provided the following data: The market price of common stock at the end of Year 2 was $4.13 per share. The company's price-earnings ratio for Year 2 is closest to:

Dahn Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $1,600. The market price of common stock at the end of Year 2 was $2.37 per share. -The company's average sale period (turnover in days) for Year 2 is closest to:

Symons Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $2,500. The market price of common stock at the end of Year 2 was $2.01 per share. -The company's dividend yield ratio 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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Exam 15: Financial Statement Analysis

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

A company's current ratio and an acid-test ratio are both greater than 1. Payment of an account payable would:

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

Data from Lheureux Corporation's most recent balance sheet and the company's income statement appear below: -The times interest earned for Year 2 is closest to:

Uhri Corporation has provided the following data: Dividends on common stock during Year 2 totaled $4,000. The market price of common stock at the end of Year 2 was $6.08 per share. The company's dividend payout ratio for Year 2 is closest to:

Sidell Corporation's most recent balance sheet and income statement appear below: Required: Compute the following for Year 2: a. Times interest earned. b. Debt-to-equity ratio.

The dividend payout ratio is equal to the dividend per share divided by the earnings per share.

An increase in the number of shares of common stock outstanding will increase a company's price-earnings ratio if the market price per share remains unchanged.

Doonan Corporation has provided the following financial data from its balance sheet and income statement: The market price of common stock at the end of Year 2 was $4.79 per share. -The company's return on total assets for Year 2 is closest to:

The following information relates to Conejo Corporation for last year: What is Conejo's price-earnings ratio for last year?

Frantic Corporation had $130,000 in sales on account last year. The beginning accounts receivable balance was $10,000 and the ending accounts receivable balance was $16,000. The corporation's accounts receivable turnover was closest to:

Spincic Corporation has provided the following data: The market price of common stock at the end of Year 2 was $4.13 per share. The company's price-earnings ratio for Year 2 is closest to:

Dahn Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $1,600. The market price of common stock at the end of Year 2 was $2.37 per share. -The company's average sale period (turnover in days) for Year 2 is closest to:

Symons Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $2,500. The market price of common stock at the end of Year 2 was $2.01 per share. -The company's dividend yield ratio 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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