Exam 2: Introduction to Financial Statement Analysis

Use the tables for the question(s)below.Consider the following financial information: Luther Corporation Consolidated Balance Sheet December 31,2019 and 2018 (in $ millions) -For the year ending December 31,2019 Luther's cash flow from operating activities is:

Use the information for the question(s)below. In November 2009,Perrigo Co.(PRGO)had a share price of $39.20.They had 91.33 million shares outstanding,a market-to-book ratio of 3.76.In addition,PRGO had $845.01 million in outstanding debt,$163.82 million in net income,and cash of $257.09 million. -Perrigo's enterprise value is closest to:

Use the table for the question(s)below. Consider the following income statement and other information: Luther Corporation Consolidated Income Statement Year ended December 31 (in $ millions) -Luther's return on equity (ROE)for the year ending December 31,2019 is closest to:

Which of the following adjustments to net income is NOT correct if you are trying to calculate cash flow from operating activities?

If Firm A and Firm B are in the same industry and use the same production method and Firm A's asset turnover is higher than that of Firm B,then all else equal,we can conclude:

Use the table for the question(s)below. Consider the following income statement and other information: Luther Corporation Consolidated Income Statement Year ended December 31 (in $ millions) -Assuming that Luther has no convertible bonds outstanding,then for the year ending December 31,2019 Luther's diluted earnings per share are closest to:

Dolan Corporation has Gross Profit of $2.3 million,cost of sales of $1.7 million,operating expenses of $0.8 million,and "other" income of $0.5 million.What is its EBIT?

Use the table for the question(s)below. Consider the following income statement and other information: Luther Corporation Consolidated Income Statement Year ended December 31 (in $ millions) -Calculate Luther's return of equity (ROE),return of assets (ROA),and price-to-earnings ratio (P/E)for the year ending December 31,2018.

Use the table for the question(s)below. Consider the following balance sheet: -If in 2019 Luther has 10.2 million shares outstanding and these shares are trading at $16 per share,then what is Luther's Enterprise Value?

Use the information for the question(s)below. In November 2009,Perrigo Co.(PRGO)had a share price of $39.20.They had 91.33 million shares outstanding,a market-to-book ratio of 3.76.In addition,PRGO had $845.01 million in outstanding debt,$163.82 million in net income,and cash of $257.09 million. -Perrigo's market capitalization is closest to:

Use the information for the question(s)below. In November 2009,Perrigo Co.(PRGO)had a share price of $39.20.They had 91.33 million shares outstanding,a market-to-book ratio of 3.76.In addition,PRGO had $845.01 million in outstanding debt,$163.82 million in net income,and cash of $257.09 million. -Perrigo's book value of equity is closest to:

Use the table for the question(s)below. Consider the following income statement and other information: Luther Corporation Consolidated Income Statement Year ended December 31 (in $ millions) -If Luther's accounts receivable were $55.5 million in 2019,then calculate Luther's accounts receivable days for 2009.

What are the four financial statements that all public companies must produce?

The firm's equity multiplier measures:

If Alex Corporation takes out a bank loan to purchase a machine used in production and everything else stays the same,its equity multiplier will ________,and its ROE will ________.

Which of the following is NOT a section on the cash flow statement?

The statement of financial performance is also known as the:

Use the table for the question(s)below. Consider the following income statement and other information: Luther Corporation Consolidated Income Statement Year ended December 31 (in $ millions) -Luther's earnings before interest,taxes,depreciation,and amortization (EBITDA)for the year ending December 31,2019 is closest to:

The Sarbanes-Oxley Act (SOX)overhauled incentives and the independence of the auditing process by:

Use the table for the question(s)below. Consider the following balance sheet: -Luther Corporation's total sales for 2019 were $610.1 million,and gross profit was $109.0 million.Inventory days for 2019 is closest to: