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Exam 17: Analysis of Financial Statements

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Question 51

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Zhang Company reported Cost of goods sold of $835,000,beginning Inventory of $37,200 and ending Inventory of $46,300.The average Inventory amount is:

A) $37,200.
B) $46,300.
C) $83,500.
D) $41,750.
E) $9,100.

F) C) and E)
G) A) and E)

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Question 52

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Annual cash dividends per share divided by market price per share is the:

A) Price-earnings ratio.
B) Price-dividends ratio.
C) Profit margin.
D) Dividend yield ratio.
E) Earnings per share.

F) C) and E)
G) B) and D)

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Question 53

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The dollar change for a comparative financial statement item is calculated by:

Jones Corp.reported current assets of $193,000 and current liabilities of $137,000 on its most recent balance sheet.The current assets consisted of $62,000 Cash;$43,000 Accounts Receivable;and $88,000 of Inventory.The acid-test (quick) ratio is:

Use the following selected information from Wheeler,LLC to determine the 2015 and 2014 trend percentages for cost of goods sold using 2014 as the base.

Express the following income statement information in common-size percentages (round to nearest whole percent).Comment on the results.

The higher the accounts receivable turnover,the less quickly accounts receivable are collected.

Dividing ending inventory by cost of goods sold and multiplying the result by 365 is the:

The measurement of key relationships between financial statement items is known as ________________.

A company's sales in Year 1 were $250,000 and in Year 2 were $287,500.Using Year 1 as the base year,the percentage change for Year 2 compared to the base year is:

A company that has days' sales uncollected of 30 days and days' sales in inventory of 18 days implies that inventory will be converted to cash in about 12 days.

The ability to generate future revenues and meet long-term obligations is referred to as:

Refer to the following selected financial information from Shakley's Incorporated.Compute the company's profit margin for Year 2.

All of the following are true of financial statement analysis report,except:

Net income divided by net sales is the:

The current ratio is calculated as current liabilities divided by current assets.

The comparison of a company's financial condition and performance across time is known as ____________________.

The return on total assets can be calculated as profit margin times total asset turnover.

Net income divided by average total assets is:

The following summaries from the income statements and balance sheets of Kouris Company and Brittania,Inc.are presented below. (1)For both companies for 2016,compute the: (a)Current ratio (b)Acid-test ratio (c)Accounts receivable turnover (d)Inventory turnover (e)Days' sales in inventory (f)Days' sales uncollected Which company do you consider to be the better short-term credit risk? Explain. (2)For both companies for 2016,compute the: (a)Profit margin ratio (b)Return on total assets (c)Return on common stockholders' equity Which company do you consider to have better profitability ratios?