Question 1

Harris Corporation, a retailer, had cost of goods sold of $290,000 last year. The beginning inventory balance was $26,000 and the ending inventory balance was $24,000. The corporation's inventory turnover was closest to:

Accepted Answer

A)  12.08
B)  11.60
C)  5.80
D)  11.15E) None of the above
F) C) and D)

Question 2

All other things the same, those who hold the company's debt (i.e., its creditors) would like a low debt-to-equity ratio to provide a buffer of protection.

Accepted Answer

A) True 
 B)False

Question 3

Neiger Corporation has provided the following financial data:   Required:
a. What is the company's working capital at the end of Year 2?
b. What is the company's current ratio at the end of Year 2?
c. What is the company's acid-test (quick) ratio at the end of Year 2?
d. What is the company's times interest earned for Year 2?
e. What is the company's debt-to-equity ratio at the end of Year 2?
f. What is the company's equity multiplier at the end of Year 2?

Accepted Answer

a. Working capital = Current assets - Cu...

Question 4

Garrott Corporation's total assets were $1,505,000 at the end of Year 2 and $1,520,000 at the end of Year 1. Its total stockholders' equity was $1,197,000 at the end of Year 2 and $1,180,000 at the end of Year 1.  The company's return on total assets for Year 2 is closest to:

Accepted Answer

A)  2.09%
B)  2.08%
C)  1.67%
D)  1.66%E) A) and D)
F) A) and C)

Question 5

Moselle Corporation has provided the following financial data:   Dividends on common stock during Year 2 totaled $4,200. The market price of common stock at the end of Year 2 was $9.72 per share.
Required:
a. What is the company's earnings per share for Year 2?
b. What is the company's price-earnings ratio for Year 2?
c. What is the company's dividend payout ratio for Year 2?
d. What is the company's dividend yield ratio for Year 2?
e. What is the company's book value per share at the end of Year 2?

Accepted Answer

a. Earnings per share = Net Income ÷ Ave...

Question 6

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 average sale period for Year 2 is closest to:

Accepted Answer

A)  63.0 days
B)  89.2 days
C)  236.3 days
D)  97.3 daysE) B) and C)
F) A) and B)

Question 7

Doonan Corporation has provided the following financial data from its balance sheet and income statement:  The market price of common stock at the end of Year 2 was $4.79 per share. The company's price-earnings ratio for Year 2 is closest to:

Accepted Answer

A)  0.76
B)  10.64
C)  16.52
D)  7.73E) A) and D)
F) C) and D)

Question 8

The market price of Friden Company's common stock increased from $15 to $18. Earnings per share of common stock remained unchanged. The company's price-earnings ratio would:

Accepted Answer

A)  increase.
B)  decrease.
C)  remain unchanged.
D)  impossible to determine.E) B) and C)
F) None of the above

Question 9

Excerpts from Colter Corporation's most recent balance sheet appear below:  Sales on account in Year 2 amounted to $1,210 and the cost of goods sold was $720. The inventory turnover for Year 2 is closest to:

Accepted Answer

A)  1.06
B)  0.94
C)  4.36
D)  4.24E) None of the above
F) A) and C)

Question 10

Kearin Corporation has provided the following financial data:   Dividends on common stock during Year 2 totaled $8,000. The market price of common stock at the end of Year 2 was $2.02 per share. The company's return on total assets for Year 2 is closest to:

Accepted Answer

A)  1.38%
B)  2.18%
C)  1.37%
D)  2.19%E) C) and D)
F) All of the above

Question 11

Hagle Corporation has provided the following financial data:   Required:
a. What is the company's accounts receivable turnover for Year 2?`
b. What is the company's average collection period (age of receivables) for Year 2?
c. What is the company's inventory turnover for Year 2?
d. What is the company's average sale period (turnover in days) for Year 2?
e. What is the company's operating cycle for Year 2?
f. What is the company's total asset turnover for Year 2?

Accepted Answer

a. Accounts receivable turnover = Sales ...

Question 12

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?

Accepted Answer

A)  Option A
B)  Option B
C)  Option C
D)  Option DE) A) and D)
F) B) and C)

Question 13

Feiler Corporation has total current assets of $483,000, total current liabilities of $347,000, total stockholders' equity of $1,057,000, total net plant and equipment of $1,031,000, total assets of $1,514,000, and total liabilities of $457,000. The company's current ratio is closest to:

Accepted Answer

A)  0.32
B)  0.30
C)  1.39
D)  0.95E) B) and D)
F) C) and D)

Question 14

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 collection period (age of receivables)  for Year 2 is closest to:

Accepted Answer

A)  35.7 days
B)  1.1 days
C)  1.0 days
D)  35.2 daysE) A) and B)
F) None of the above

Question 15

Kearin Corporation has provided the following financial data:   Dividends on common stock during Year 2 totaled $8,000. The market price of common stock at the end of Year 2 was $2.02 per share. The company's net profit margin percentage for Year 2 is closest to:

Accepted Answer

A)  3.9%
B)  38.5%
C)  2.5%
D)  1.6%E) A) and B)
F) All of the above

Question 16

If a retailer sells a product whose contribution margin equals the gross margin percentage, the gross margin percentage will be unaffected by the transaction.

Accepted Answer

A) True 
 B)False

Question 17

Neef Corporation has provided the following financial data from its balance sheet and income statement:   The company's return on total assets for Year 2 is closest to:

Accepted Answer

A)  0.99%
B)  1.00%
C)  1.85%
D)  1.83%E) A) and D)
F) A) and B)

Question 18

Recher Corporation's common stock has a par value of $3 per share and has been stable at a total value of $270,000 on the company's balance sheet for several years. The total stockholders' equity at the end of this year was $1,023,000 and at the beginning of the year was $1,010,000. Net income for the year was $17,500. Dividends on common stock during the year totaled $4,500. The market price of common stock at the end of the year was $3.76 per share. The company's book value per share at the end of the year is closest to:

Accepted Answer

A)  $11.37 per share
B)  $7.37 per share
C)  $0.19 per share
D)  $16.81 per shareE) A) and B)
F) A) and C)

Question 19

Calin Corporation has total current assets of $615,000, total current liabilities of $230,000, total stockholders' equity of $1,183,000, total net plant and equipment of $958,000, total assets of $1,573,000, and total liabilities of $390,000. The company's working capital is:

Accepted Answer

A)  $615,000
B)  $1,183,000
C)  $385,000
D)  $958,000E) A) and B)
F) A) and C)

Question 20

Ribaudo Corporation has provided the following financial data from its balance sheet and income statement:  The company's total asset turnover for Year 2 is closest to:

Accepted Answer

A)  5.29
B)  0.19
C)  1.04
D)  0.96E) B) and C)
F) A) and D)

Exam 13: Financial Statement Analysis

Correct Answer
verified
a. Earnings per share = Net Income ÷ Ave...
View Answer

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 average sale period for Year 2 is closest to:

Correct Answer
verified

Ribaudo Corporation has provided the following financial data from its balance sheet and income statement: The company's total asset turnover for Year 2 is closest to:

Correct Answer
verified

Correct Answer
verified

If a retailer sells a product whose contribution margin equals the gross margin percentage, the gross margin percentage will be unaffected by the transaction.

Correct Answer
verified

Neef Corporation has provided the following financial data from its balance sheet and income statement: The company's return on total assets for Year 2 is closest to:

Correct Answer
verified

Excerpts from Colter Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,210 and the cost of goods sold was $720. The inventory turnover for Year 2 is closest to:

Correct Answer
verified

Correct Answer
verified
a. Accounts receivable turnover = Sales ...
View Answer

Doonan Corporation has provided the following financial data from its balance sheet and income statement: The market price of common stock at the end of Year 2 was $4.79 per share. The company's price-earnings ratio for Year 2 is closest to:

Correct Answer
verified

Kearin Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $8,000. The market price of common stock at the end of Year 2 was $2.02 per share. The company's return on total assets for Year 2 is closest to:

Correct Answer
verified

The market price of Friden Company's common stock increased from $15 to $18. Earnings per share of common stock remained unchanged. The company's price-earnings ratio would:

Correct Answer
verified

Garrott Corporation's total assets were $1,505,000 at the end of Year 2 and $1,520,000 at the end of Year 1. Its total stockholders' equity was $1,197,000 at the end of Year 2 and $1,180,000 at the end of Year 1. The company's return on total assets for Year 2 is closest to:

Correct Answer
verified

All other things the same, those who hold the company's debt (i.e., its creditors) would like a low debt-to-equity ratio to provide a buffer of protection.

Correct Answer
verified

Harris Corporation, a retailer, had cost of goods sold of $290,000 last year. The beginning inventory balance was $26,000 and the ending inventory balance was $24,000. The corporation's inventory turnover was closest to:

Correct Answer
verified

Feiler Corporation has total current assets of $483,000, total current liabilities of $347,000, total stockholders' equity of $1,057,000, total net plant and equipment of $1,031,000, total assets of $1,514,000, and total liabilities of $457,000. The company's current ratio is closest to:

Correct Answer
verified

Calin Corporation has total current assets of $615,000, total current liabilities of $230,000, total stockholders' equity of $1,183,000, total net plant and equipment of $958,000, total assets of $1,573,000, and total liabilities of $390,000. The company's working capital is:

Correct Answer
verified

Kearin Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $8,000. The market price of common stock at the end of Year 2 was $2.02 per share. The company's net profit margin percentage for Year 2 is closest to:

Correct Answer
verified

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?

Correct Answer
verified

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 collection period (age of receivables) for Year 2 is closest to:

Correct Answer
verified

Correct Answer
verified
a. Working capital = Current assets - Cu...
View Answer

Exam 13: Financial Statement Analysis

Correct Answerverifieda. Earnings per share = Net Income ÷ Ave...View AnswerShow Answer

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 average sale period for Year 2 is closest to:

Correct AnswerverifiedShow Answer

Ribaudo Corporation has provided the following financial data from its balance sheet and income statement: The company's total asset turnover for Year 2 is closest to:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If a retailer sells a product whose contribution margin equals the gross margin percentage, the gross margin percentage will be unaffected by the transaction.

Correct AnswerverifiedShow Answer

Neef Corporation has provided the following financial data from its balance sheet and income statement: The company's return on total assets for Year 2 is closest to:

Correct AnswerverifiedShow Answer

Excerpts from Colter Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,210 and the cost of goods sold was $720. The inventory turnover for Year 2 is closest to:

Correct AnswerverifiedShow Answer

Correct Answerverifieda. Accounts receivable turnover = Sales ...View AnswerShow Answer

Doonan Corporation has provided the following financial data from its balance sheet and income statement: The market price of common stock at the end of Year 2 was $4.79 per share. The company's price-earnings ratio for Year 2 is closest to:

Correct AnswerverifiedShow Answer

Kearin Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $8,000. The market price of common stock at the end of Year 2 was $2.02 per share. The company's return on total assets for Year 2 is closest to:

Correct AnswerverifiedShow Answer

The market price of Friden Company's common stock increased from $15 to $18. Earnings per share of common stock remained unchanged. The company's price-earnings ratio would:

Correct AnswerverifiedShow Answer

Garrott Corporation's total assets were $1,505,000 at the end of Year 2 and $1,520,000 at the end of Year 1. Its total stockholders' equity was $1,197,000 at the end of Year 2 and $1,180,000 at the end of Year 1. The company's return on total assets for Year 2 is closest to:

Correct AnswerverifiedShow Answer

All other things the same, those who hold the company's debt (i.e., its creditors) would like a low debt-to-equity ratio to provide a buffer of protection.

Correct AnswerverifiedShow Answer

Harris Corporation, a retailer, had cost of goods sold of $290,000 last year. The beginning inventory balance was $26,000 and the ending inventory balance was $24,000. The corporation's inventory turnover was closest to:

Correct AnswerverifiedShow Answer

Feiler Corporation has total current assets of $483,000, total current liabilities of $347,000, total stockholders' equity of $1,057,000, total net plant and equipment of $1,031,000, total assets of $1,514,000, and total liabilities of $457,000. The company's current ratio is closest to:

Correct AnswerverifiedShow Answer

Calin Corporation has total current assets of $615,000, total current liabilities of $230,000, total stockholders' equity of $1,183,000, total net plant and equipment of $958,000, total assets of $1,573,000, and total liabilities of $390,000. The company's working capital is:

Correct AnswerverifiedShow Answer

Kearin Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $8,000. The market price of common stock at the end of Year 2 was $2.02 per share. The company's net profit margin percentage for Year 2 is closest to:

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

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 collection period (age of receivables) for Year 2 is closest to:

Correct AnswerverifiedShow Answer

Correct Answerverifieda. Working capital = Current assets - Cu...View AnswerShow Answer

Correct Answer
verified
a. Earnings per share = Net Income ÷ Ave...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
a. Accounts receivable turnover = Sales ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
a. Working capital = Current assets - Cu...
View Answer