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Exam 15: Financial Statement Analysis

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Question 121

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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:

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

E) None of the above
F) B) and D)

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Question 122

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Mahoe Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $500. The market price of common stock at the end of Year 2 was $8.06 per share. -The company's total asset turnover for Year 2 is closest to:

A) 1.25
B) 0.80
C) 6.57
D) 0.15

E) A) and C)
F) A) and B)

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Question 123

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As the inventory turnover increases,the average sales period decreases.

Linzey Corporation has provided the following data: The company's net income in Year 2 was $33,000.The company's book value per share at the end of Year 2 is closest to:

Keyton Corporation's net operating income in Year 2 was $43,714,net income before taxes was $30,714,and the net income was $21,500.Total common stock was $200,000 at the end of both Year 2 and Year 1.The par value of common stock is $4 per share.The company's total stockholders' equity at the end of Year 2 amounted to $1,148,000 and at the end of Year 1 to $1,130,000.The company declared and paid $3,500 dividends on common stock in Year 2.The market price per share was $8.43 at the end of Year 2.The company's dividend payout ratio for Year 2 is closest to:

Burdick Corporation has provided the following financial data from its balance sheet: $\begin{array}{lrr}&\text { Year 2 } & \text { Year 1 } \\\text { Accounts receivable, net}&\$ 266,000 & \$ 250,000 \\\text { Inventory }&\$ 162,000 & \$ 190,000 \\\text {Total assets }&\$ 1,415,000 & \$ 1,390,000 \\\text {Total stockholders' equity }&\$ 991,000 & \$ 970,000\end{array}$ Sales (all on account) in Year 2 amounted to $1,410,000 and the cost of goods sold was $860,000. -The company's equity multiplier at the end of Year 2 is closest to:

Macmillan Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $7,200. The market price of common stock at the end of Year 2 was $3.69 per share. -The company's acid-test (quick) ratio at the end of Year 2 is closest to:

Fraction Corporation has provided the following financial data: 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?

Valdovinos Corporation has provided the following data: The company's net profit margin percentage 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.

Spomer Corporation's inventory at the end of Year 2 was $114,000 and its inventory at the end of Year 1 was $120,000.Cost of goods sold amounted to $710,000 in Year 2.The company's inventory turnover for Year 2 is closest to:

Hernande Corporation has provided the following data: The company's earnings per share for Year 2 is closest to:

Last year Truro Corporation purchased $800,000 of inventory.The cost of goods sold was $750,000 and the ending inventory was $125,000.The inventory turnover for the year was:

Settles Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $5,400. The market price of common stock at the end of Year 2 was $5.89 per share. -The company's earnings per share for Year 2 is closest to:

A common-size financial statement is a vertical analysis in which each financial statement account is expressed as a percentage.

Jaquez Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $10,000.The market price of common stock at the end of Year 2 was $5.45 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? 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?

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 for Year 2 is closest to:

Karma Corporation has total assets of $190,000 and total liabilities of $90,000.The corporation's debt-to-equity ratio is closest to:

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?

Zack Company has a current ratio of 2.5.What will be the effect of a purchase of inventory with cash on the acid-test ratio and on working capital? $\begin{array}{cc}&\text { Acid-Test Ratio } & \text { Working Capita } \\A)&\text { decrease } & \text { decrease } \\B)&\text { decrease } & \text { no effect } \\C)&\text { no effect } & \text { decrease } \\D)&\text { no effect } & \text { no effect }\end{array}$