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The following data are taken from the financial statements: The following data are taken from the financial statements: The following data are taken from the financial statements:

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Why would you or why wouldn't you compare an organization like Ford Motor Company to the local car dealer "Johnson City Ford/Lincoln/Mercury" in vertical and horizontal analysis?

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Ford Motor Company is an automobile manu...

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The balance sheets at the end of each of the first two years of operations indicate the following: The balance sheets at the end of each of the first two years of operations indicate the following: If net income is $115,000 and interest expense is $30,000 for 2012 what is the rate earned on total assets for 2012 (round percent to one decimal point) ? A) 9.3% B) 10.1% C) 8.0% D) 7.4% If net income is $115,000 and interest expense is $30,000 for 2012 what is the rate earned on total assets for 2012 (round percent to one decimal point) ?


A) 9.3%
B) 10.1%
C) 8.0%
D) 7.4%

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

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Comparative information taken from the Koda Company financial statements is shown below: Comparative information taken from the Koda Company financial statements is shown below: Instructions Using horizontal analysis, show the percentage change from 2011 to 2012 with 2011 as the base year. Instructions Using horizontal analysis, show the percentage change from 2011 to 2012 with 2011 as the base year.

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A balance sheet that displays only component percentages is called


A) trend balance sheet
B) comparative balance sheet
C) condensed balance sheet
D) common-sized balance sheet

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

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The following information was taken from the financial statement of Fox Resources for December 31 of the current fiscal year: The following information was taken from the financial statement of Fox Resources for December 31 of the current fiscal year: The net income was $600,000 and the declared dividends on the common stock were $125,000 for the current year. The market price of the common stock is $20 per share. Required: Calculate for the common stock: (1) earnings per share (2) the price-earnings ratio (3) the dividends per share and the dividend yield. Round to one decimal place except earnings per share, which should be rounded to two decimal places.The net income was $600,000 and the declared dividends on the common stock were $125,000 for the current year. The market price of the common stock is $20 per share. Required: Calculate for the common stock: (1) earnings per share (2) the price-earnings ratio (3) the dividends per share and the dividend yield. Round to one decimal place except earnings per share, which should be rounded to two decimal places.

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Which of the following is not included in the computation of the quick ratio?


A) inventory
B) marketable securities
C) accounts receivable
D) cash

E) All of the above
F) C) and D)

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When a corporation discontinues a segment of its operations at a loss, the loss should be reported as a separate item after income from continuing operations on the income statement.

A) True
B) False

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Based on the following data for the current year, what is the inventory turnover? Based on the following data for the current year, what is the inventory turnover? A) 2.7 B) 9.7 C) 2.5 D) 3.0


A) 2.7
B) 9.7
C) 2.5
D) 3.0

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

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The numerator of the rate earned on common stockholders' equity ratio is equal to


A) net income
B) net income minus preferred dividends
C) income before income tax
D) operating income minus interest expense

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

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Assume the following sales data for a company: Assume the following sales data for a company: What is the percentage increase in sales from 2014 to 2015? A) 75% B) 66.7% C) 25% D) 150% What is the percentage increase in sales from 2014 to 2015?


A) 75%
B) 66.7%
C) 25%
D) 150%

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

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The particular analytical measures chosen to analyze a company may be influenced by all of the following except:


A) industry type
B) capital structure
C) diversity of business operations
D) product quality or service effectiveness

E) All of the above
F) A) and C)

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If a company has issued only one class of stock, the earnings per share are determined by dividing net income plus interest expense by the number of shares outstanding.

A) True
B) False

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Which of the following measures a company's ability to pay its current liabilities?


A) earnings per share
B) inventory turnover
C) current ratio
D) number of times interest charges earned

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

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The purpose of an audit is to


A) determine whether or not a company is a good investment.
B) render an opinion on the fairness of the statements.
C) determine whether or not a company complies with corporate social responsibility.
D) determine whether or not a company is a good credit risk.

E) B) and C)
F) All of the above

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If a firm has a current ratio of 2, the subsequent receipt of a 60-day note receivable on account will cause the ratio to decrease.

A) True
B) False

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Which of the following items appear on the corporate income statement before income from continuing operations?


A) cumulative effect of a change in accounting principle
B) income tax expense
C) extraordinary gain
D) loss on discontinued operations

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

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The following items are reported on a company's balance sheet: The following items are reported on a company's balance sheet: Determine the (a) current ratio, and (b) quick ratio. Round your answer to one decimal place. Determine the (a) current ratio, and (b) quick ratio. Round your answer to one decimal place.

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The following information pertains to Auburn Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. The following information pertains to Auburn Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. What is the rate earned on stockholders' equity? Round answer to a single decimal point. A) 9.3% B) 15.9% C) 24.0% D) 40.9% What is the rate earned on stockholders' equity? Round answer to a single decimal point.


A) 9.3%
B) 15.9%
C) 24.0%
D) 40.9%

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

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A decrease in the ratio of liabilities to stockholders' equity indicates an improvement in the margin of safety for creditors.

A) True
B) False

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Showing 101 - 120 of 184

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