Question 1

Income statements for Maroon Co.show the following:
  From the data presented,calculate the following ratios for 2014 and 2013:

Accepted Answer

The answer of Income statements for Maroon Co.show the following:
...

Question 2

Selected information from the 2014 and 2013 financial statements of Sculley Corporation is presented below:
  
-Refer to the Sculley Corporation information above.Sculley's current ratio as of December 31,2014,is

Accepted Answer

A)   2.84 to 1.
B)   3.37 to 1.
C)   2.91 to 1.
D)   3.33 to 1. C

Question 3

Selected information for Henriot Company is as follows:  Henriot's return on common stockholder's equity,rounded to the nearest percentage point,for 2014 is

Accepted Answer

A)   20 percent.
B)   21 percent.
C)   28 percent.
D)   40 percent. B

Question 4

Ringer Corporation had a current ratio of 3.1 at the end of 2013.Current assets and current liabilities increased by equal amounts during 2014.The effects on net working capital and on the current ratio,respectively,were

Accepted Answer

A)   no effect;increase.
B)   no effect;decrease.
C)   increase;increase.
D)   decrease;decrease.

Question 5

Which of the following ratios does NOT measure efficiency or activity of an entity?

Accepted Answer

A)   Accounts receivable turnover
B)   Age of accounts receivable
C)   Net cash flow to current liabilities
D)   Times interest earned

Question 6

Brookville Corporation's books disclosed the following information for the year ended December 31,2014:  Brookville's accounts receivable turnover is

Accepted Answer

A)   3.75 times.
B)   4.35 times.
C)   5.00 times.
D)   5.80 times.

Question 7

Which of the following ratios measures short-term solvency?

Accepted Answer

A)   Current ratio
B)   Creditors' equity to total assets
C)   Return on investment
D)   Total asset turnover

Question 8

Which of the following transactions would increase a firm's current ratio?

Accepted Answer

A)   Purchase of inventory on account
B)   Payment of accounts payable
C)   Collection of accounts receivable
D)   Purchase of temporary investments for cash

Question 9

How would the quick ratio be affected by a prepayment of $30,000 for fire and liability insurance?

Accepted Answer

A)   The quick ratio would decrease.
B)   The quick ratio would increase.
C)   The quick ratio would not change.
D)   The effect cannot be determined from the information given.

Question 10

Which of the following is included in the calculation of the acid-test (quick)ratio? Accounts Receivable Inventories

Accepted Answer

A)   No No
B)   No Yes
C)   Yes No
D)   Yes Yes

Question 11

What is the effect of the collection of accounts receivable on the current ratio and net working capital,respectively? Current Ratio Net Working Capital

Accepted Answer

A)   No effect No effect
B)   Increase Increase
C)   Increase No effect
D)   No effect Increase

Question 12

The calculation of the return on total assets ratio would use all of the following except

Accepted Answer

A)   average stockholders' equity.
B)   total assets.
C)   average total assets.
D)   net sales.

Question 13

The following data were abstracted from the records of Ballistic Corporation for the year:  How many times was bond interest earned?

Accepted Answer

A)   18.0
B)   15.0
C)   11.0
D)   10.0

Question 14

Which of the following ratios would NOT be positively affected by a change from LIFO to FIFO,assuming that prices are rising?

Accepted Answer

A)   Current ratio
B)   Debt to equity ratio
C)   Times interest earned
D)   Quick ratio

Question 15

Which of the following is true regarding the debt to equity ratio?

Accepted Answer

A)   The debt to equity ratio is a stringent measure of liquidity.
B)   The debt to equity ratio measures the productivity and desirability of the equity investment.
C)   The debt to equity ratio measures management's ability to productively employ all its resources.
D)   The debt to equity ratio measures the capital structure of the entity.

Question 16

Harvest Corporation's capital stock at December 31 consisted of the following: (a)Common stock,$2 par value;100,000 shares authorized,issued,and outstanding.(b)10% noncumulative,nonconvertible preferred stock,$100 par value;1,000 shares authorized,issued,and outstanding. Harvest's common stock,which is listed on a major stock exchange,was quoted at $4 per share on December 31.Harvest's net income for the year ended December 31 was $50,000.The yearly preferred dividend was declared.No capital stock transactions occurred.What was the price- earnings ratio on Harvest's common stock at December 31?

Accepted Answer

A)   6 to 1
B)   8 to 1
C)   10 to 1
D)   16 to 1

Question 17

If a firm changes its inventory method from FIFO to LIFO just prior to a period of rising prices,the effect in the next period will be Current Ratio Inventory Turnover

Accepted Answer

A)   No effect Increase
B)   No effect Decrease
C)   Increase Decrease
D)   Decrease Increase

Question 18

Which of the following is not a component of the DuPont Framework?

Accepted Answer

A)   Return on sales
B)   Asset turnover
C)   Assets to debt
D)   Assets to equity

Question 19

Selected information from the accounting records of Thackary Company is as follows:  Thackary's inventory turnover for 2014 is

Accepted Answer

A)   7.50 times.
B)   6.665 times.
C)   4.44times.
D)   2.22 times.

Question 20

The following are comparative data for Jobs Company for the three-year period 2012-2014:
  Compute the following measurements for 2014 and 2013:

Accepted Answer

The answer of The following are comparative data for Jobs...

Exam 23: Analysis of Financial Statements

Income statements for Maroon Co.show the following: From the data presented,calculate the following ratios for 2014 and 2013:

Selected information from the 2014 and 2013 financial statements of Sculley Corporation is presented below: -Refer to the Sculley Corporation information above.Sculley's current ratio as of December 31,2014,is

Selected information for Henriot Company is as follows: Henriot's return on common stockholder's equity,rounded to the nearest percentage point,for 2014 is

Ringer Corporation had a current ratio of 3.1 at the end of 2013.Current assets and current liabilities increased by equal amounts during 2014.The effects on net working capital and on the current ratio,respectively,were

Which of the following ratios does NOT measure efficiency or activity of an entity?

Brookville Corporation's books disclosed the following information for the year ended December 31,2014: Brookville's accounts receivable turnover is

Which of the following ratios measures short-term solvency?

Which of the following transactions would increase a firm's current ratio?

How would the quick ratio be affected by a prepayment of $30,000 for fire and liability insurance?

Which of the following is included in the calculation of the acid-test (quick) ratio? Accounts Receivable Inventories

What is the effect of the collection of accounts receivable on the current ratio and net working capital,respectively? Current Ratio Net Working Capital

The calculation of the return on total assets ratio would use all of the following except

The following data were abstracted from the records of Ballistic Corporation for the year: How many times was bond interest earned?

Which of the following ratios would NOT be positively affected by a change from LIFO to FIFO,assuming that prices are rising?

Which of the following is true regarding the debt to equity ratio?

If a firm changes its inventory method from FIFO to LIFO just prior to a period of rising prices,the effect in the next period will be Current Ratio Inventory Turnover

Which of the following is not a component of the DuPont Framework?

Selected information from the accounting records of Thackary Company is as follows: Thackary's inventory turnover for 2014 is

The following are comparative data for Jobs Company for the three-year period 2012-2014: Compute the following measurements for 2014 and 2013: