Exam 13: Measuring and Evaluating Financial Performance

A company has earnings per share of $1.20,it paid a dividend of $.50 per share,and the market price of the company's stock is $45 per share.The price/earnings ratio is closest to:

In a common size income statement,each item on the income statement is expressed as a percentage of:

How competitors calculate depreciation is most likely to affect comparisons between competitors if property,plant and equipment:

A share of stock sells for $20.The company has $64 million in earnings and 200 million outstanding shares.The P/E ratio for the company is closest to:

The debt-to-assets ratio is the:

Which of the following analysis techniques does not pertain to changes over time?

The higher the times interest earned ratio,the greater the risk of nonpayment of interest.

Company X has net sales revenue of $436,000,cost of goods sold of $343,000,and all other expenses of $90,000.If interest expense is $10,000 and income tax expense is $1,000,the times interest earned ratio is closest to

Which of the following statements regarding the P/E ratio is not true?

A current ratio of 2.5 means that for every dollar of:

Choose the appropriate letter of the financial performance category to match the following financial performance ratio of that category. P - Profitability L - Liquidity S - Solvency _____ Debt to assets ratio _____ Receivables turnover ratio _____ Fixed asset turnover ratio _____ Current ratio _____ Return on equity _____ Price earnings ratio _____ Times interest earned ratio _____ Quick ratio _____ Inventory turnover ratio _____ Earnings per share

Use the information above to answer the following question.The gross profit percentage for the current year rounded to the nearest whole percent is closest to

Liquidity measures the ability of a company to meet its current financial obligations.

Special items reported as part of comprehensive income,but not included in net income,might include:

Horizontal analysis is the comparison of a company's financial information to a base amount.

Which of the following is not a profitability ratio?

The going-concern assumption is also known as the continuity assumption.

A decrease in accounts receivable turnover ratio is indicative of:

If an analyst wants to examine a company's current ability to generate income,which of the following would best be considered?

The ratio that measures the company's ability to meet required interest payments is the: