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Exam 16: Financial Statement Analysis

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Question 41

Multiple Choice

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If current assets exceed current liabilities, prepaying an expense on the last day of the year will:

A) decrease the current ratio.
B) increase the acid-test ratio.
C) decrease the acid-test ratio.
D) increase the current ratio.

E) C) and D)
F) A) and C)

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Question 42

Multiple Choice

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Financial statements for Maraby Corporation appear below: Maraby Corporation's accounts receivable turnover for Year 2 was closest to:

A) 13.5
B) 7.8
C) 11.2
D) 9.4

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

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Question 43

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Sidell Corporation's most recent balance sheet and income statement appear below: Required:Compute the following for Year 2:a. Times interest earned ratio.b. Debt-to-equity ratio.

Stimac Corporation has total cash of $210,000, no marketable securities, total current receivables of $281,000, total inventory of $151,000, total prepaid expenses of $53,000, total current assets of $695,000, total current liabilities of $261,000, total stockholders' equity of $1,014,000, total assets of $1,415,000, and total liabilities of $401,000. The company's acid-test (quick) ratio is closest to:

Excerpts from Sydner Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,390 and the cost of goods sold was $900.The accounts receivable turnover for Year 2 is closest to:

Fongeallaz Corporation's income statement for Year 2 appears below: The company's total stockholders' equity at the end of Year 2 amounted to $841,000 and at the end of Year 1 to $810,000. The company's return on equity for Year 2 is closest to:

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 inventory turnover for Year 2 is closest to:

Crosswhite Corporation's sales last year were $1,270,000, its gross margin was $400,000, its net operating income was $53,769, and its net income was $26,500. The company's net profit margin percentage is closest to:

Grosvenor Corporation's most recent income statement appears below: The gross margin percentage is closest to:

Falmouth Corporation's debt to equity ratio is 0.6. Current liabilities are $120,000, long term liabilities are $360,000, and working capital is $140,000. Total assets of the corporation must be:

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 average collection period for Year 2 is closest to: (Round your intermediate calculations to 2 decimal places.)

Data from Lheureux Corporation's most recent balance sheet and the company's income statement appear below: The times interest earned ratio for Year 2 is closest to:

Nickolls Corporation has provided the following financial data: The company's acid-test (quick) ratio is closest to:

Excerpts from Candle Corporation's most recent balance sheet (in thousands of dollars) appear below: Sales on account during the year totaled $1,200 thousand. Cost of goods sold was $800 thousand.Required:Compute the following for Year 2:a. Working capital.b. Current ratio.c. Acid-test (quick) ratio.d. Accounts receivable turnover.e. Average collection period.f. Inventory turnover.g. Average sale period.

Cameron Corporation had 50,000 shares of common stock issued and outstanding that it originally issued for $40 per share. The following information pertains to these shares: The total dividend on common stock for the year was $400,000. Cameron Corporation's dividend yield ratio for the year was:

Mayfield Corporation has provided the following financial data: The company's current ratio is closest to:

Erastic Corporation has $16,000 in cash, $9,000 in marketable securities, $37,000 in account receivable, $44,000 in inventories, and $44,000 in current liabilities. The corporation's current assets consist of cash, marketable securities, accounts receivable, and inventory. The corporation's acid-test ratio is closest to:

Lasch Corporation has provided the following financial data from its balance sheet and income statement: The company's times interest earned ratio for Year 2 is closest to:

Nickolls Corporation has provided the following financial data: The company's current ratio is closest to:

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 operating cycle for Year 2 is closest to: (Round your intermediate calculations to 2 decimal places.)