Question 1

Dilisio Corporation has provided the following data:
  Required:Compute the inventory turnover for this year:

Accepted Answer

The answer of Dilisio Corporation has provided the following data:
...

Question 2

A high price-earnings ratio means that investors are willing to pay a premium for the company's stock.

Accepted Answer

A) True 
 B)False

Question 3

Excerpts from Colter Corporation's most recent balance sheet appear below:  Sales on account in Year 2 amounted to $1,210 and the cost of goods sold was $720.The inventory turnover for Year 2 is closest to:

Accepted Answer

A)  1.06 
B)  0.94 
C)  4.36 
D)  4.24

Question 4

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 ratio 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

The answer of Tobia Corporation has provided the following financial...

Question 5

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 price-earnings ratio for Year 2 is closest to: (Round your intermediate calculations to 2 decimal places.)

Accepted Answer

A)  3.79 
B)  10.58 
C)  0.17 
D)  7.44

Question 6

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 price-earnings ratio for Year 2 is closest to: (Round your intermediate calculations to 2 decimal places.)

Accepted Answer

A)  0.76 
B)  10.64 
C)  16.52 
D)  7.73

Question 7

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 return on equity for Year 2 is closest to:

Accepted Answer

A)  3.02% 
B)  3.77% 
C)  2.11% 
D)  79.14%

Question 8

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 dividend payout ratio is closest to: (Round your intermediate calculations to 2 decimal places.)

Accepted Answer

A)  1.3% 
B)  1.7% 
C)  17.1% 
D)  26.3%

Question 9

If a retailer sells a product whose contribution margin equals the gross margin percentage, the gross margin percentage will be unaffected by the transaction.

Accepted Answer

A) True 
 B)False

Question 10

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: (Round your intermediate calculations to 2 decimal places.)

Accepted Answer

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

Question 11

Harris Corporation, a retailer, had cost of goods sold of $290,000 last year. The beginning inventory balance was $26,000 and the ending inventory balance was $24,000. The corporation's inventory turnover was closest to:

Accepted Answer

A)  12.08 
B)  11.60 
C)  5.80 
D)  11.15

Question 12

Lindboe Corporation has provided the following financial data:
  Dividends on common stock during Year 2 totaled $4,800. The market price of common stock at the end of Year 2 was $5.46 per share.Required:a. What is the company's times interest earned ratio 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?

Accepted Answer

The answer of Lindboe Corporation has provided the following financial...

Question 13

Neef Corporation has provided the following financial data from its balance sheet and income statement:  The company's return on total assets for Year 2 is closest to:

Accepted Answer

A)  0.99% 
B)  1.00% 
C)  1.85% 
D)  1.83%

Question 14

Burdick Corporation has provided the following financial data from its balance sheet:  Sales (all on account) in Year 2 amounted to $1,410,000 and the cost of goods sold was $860,000.The company's total asset turnover for Year 2 is closest to:

Accepted Answer

A)  0.99 
B)  0.19 
C)  5.32 
D)  1.01

Question 15

Mondok 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 accounts receivable turnover for Year 2?e. What is the company's average collection period for Year 2?f. What is the company's inventory turnover for Year 2?g. What is the company's average sale period for Year 2?h. What is the company's operating cycle for Year 2?i. What is the company's total asset turnover for Year 2?j. What is the company's times interest earned ratio for Year 2?k. What is the company's debt-to-equity ratio at the end of Year 2?l. What is the company's equity multiplier at the end of Year 2?

Accepted Answer

The answer of Mondok Corporation has provided the following financial...

Question 16

Cutsinger Corporation has provided the following data from its most recent income statement:  The times interest earned ratio is closest to:

Accepted Answer

A)  1.83 
B)  0.28 
C)  1.28 
D)  0.19

Question 17

A company's current ratio and its 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.

Question 18

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 accounts receivable turnover for Year 2 is closest to:

Accepted Answer

A)  12.95 
B)  1.02 
C)  0.98 
D)  13.06

Question 19

Ribaudo Corporation has provided the following financial data from its balance sheet and income statement:  The company's operating cycle for Year 2 is closest to: (Round your intermediate calculations to 2 decimal places.)

Accepted Answer

A)  95.9 days 
B)  75.3 days 
C)  162.0 days 
D)  9.2 days

Question 20

Data from Dunshee Corporation's most recent balance sheet appear below:  Sales on account in Year 2 amounted to $1,645 and the cost of goods sold was $1,015.The acid-test (quick) ratio at the end of Year 2 is closest to:

Accepted Answer

A)  2.07 
B)  1.59 
C)  1.49 
D)  1.25

Exam 16: Financial Statement Analysis

Dilisio Corporation has provided the following data: Required:Compute the inventory turnover for this year:

A high price-earnings ratio means that investors are willing to pay a premium for the company's stock.

Excerpts from Colter Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,210 and the cost of goods sold was $720.The inventory turnover 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 return on equity for Year 2 is closest to:

If a retailer sells a product whose contribution margin equals the gross margin percentage, the gross margin percentage will be unaffected by the transaction.

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: (Round your intermediate calculations to 2 decimal places.)

Harris Corporation, a retailer, had cost of goods sold of $290,000 last year. The beginning inventory balance was $26,000 and the ending inventory balance was $24,000. The corporation's inventory turnover was closest to:

Neef Corporation has provided the following financial data from its balance sheet and income statement: The company's return on total assets for Year 2 is closest to:

Burdick Corporation has provided the following financial data from its balance sheet: Sales (all on account) in Year 2 amounted to $1,410,000 and the cost of goods sold was $860,000.The company's total asset turnover for Year 2 is closest to:

Cutsinger Corporation has provided the following data from its most recent income statement: The times interest earned ratio is closest to:

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

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 accounts receivable turnover for Year 2 is closest to:

Ribaudo Corporation has provided the following financial data from its balance sheet and income statement: The company's operating cycle for Year 2 is closest to: (Round your intermediate calculations to 2 decimal places.)

Data from Dunshee Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,645 and the cost of goods sold was $1,015.The acid-test (quick) ratio at the end of Year 2 is closest to: