Exam 14: Financial Statement Analysis

[The following information applies to the questions displayed below.] Given below are comparative balance sheets and an income statement for Namekagon Corporation. -Namekagon Corporation's book value per share for 2018 is:

[The following information applies to the questions displayed below.] Given below are comparative balance sheets and an income statement for Claret Corporation. All sales were made on account.Cash dividends declared during the year totaled $11,492. -Claret Corporation's earnings per share for 2018,rounded to the nearest cent,is:

Which of the following is not a measure of long-term credit risk?

When comparing the current ratio to the quick ratio:

[The following information applies to the questions displayed below.] Shown below are selected data from the financial statements of Noble Computers.(Dollar amounts are in millions,except for the per share data. ) Noble reported earnings per share for the year of $6 and paid cash dividends of $2.00 per share.At year-end,the Wall Street Journal listed Noble's capital stock as trading at $81 per share. -200 Noble's return on equity was:

[The following information applies to the questions displayed below.] Given below are comparative balance sheets and an income statement for Eleva Corporation. All sales were made on account.Cash dividends declared during the year totaled $22,984. -Eleva Corporation's inventory turnover for 2018 is closest to:

Financial ratios Given below are comparative balance sheets and an income statement for the Excellent Corporation: All sales were made on account.Cash dividends declared during the year totaled $58,550.Compute the following:

Profitability measures Shown below is a recent income statement for B-D Electric. Net Income $ 970,000 Assume that comparative balance sheets for B-D Electric indicate average total assets for the year of $2,500,000,and average total equity of $2,050,000.Compute the following:

Comparative financial statements show side-by-side financial data for two or more companies.

The gross profit rate represents:

The current ratio may be less than,equal to,or greater than the quick ratio.

In order for investors and creditors to decide whether to invest in a company or loan a company funds they should do all of the following except:

Which of the following is a measure of profitability?

The debt ratio is computed by dividing total liabilities by current assets.

Evaluating the adequacy of net income Assume that Delta Corp.earns net income of $1,000,000 in the current year.Identify two important factors that investors should consider in evaluating the reasonableness of this dollar amount.Explain what investors may learn from each of these considerations.

The current ratio:

The owners of a corporation are not personally responsible for the debts of the business.

The measurement of the relative size of each item included in a total is called:

[The following information applies to the questions displayed below.] Shown below are selected data from the financial statements of Supreme Co.Dollar amounts are in millions (except for the per share data). Supreme reported earnings per share for the year of $4 and paid cash dividends of $1 per share.At year-end,the Wall Street Journal listed Supreme's capital stock as trading at $88 per share. -200 Supreme's return on assets was:

[The following information applies to the questions displayed below.] Shown below are selected data from the balance sheet of Compros,a small electronics store (dollar amounts are in thousands): -200 What is Compros' debt ratio?