Exam 2: Introduction to Financial Statement Analysis

Use the table for the question(s)below. Consider the following balance sheet: -Luther Corporation's stock price is $39 per share and the company has 20 million shares outstanding.Its Market value Debt-Equity Ratio for 2009 is closest to:

If Moon Corporation has an increase in sales,which of the following would result in no change in its EBIT margin?

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 Luther's market-to-book ratio would be closest to:

Zoe Dental Implements has gross property,plant and equipment totaling $1.4 million,depreciation expense this year of $200,000,and accumulated depreciation of $750,000.What is the book value of Zoe's property,plant and equipment?

What is the role of an auditor in financial statement analysis?

Which of the following includes other sources of income or expenses that arise from activities that are not a central part of a company's business?

Which of the following statements regarding the balance sheet is INCORRECT?

Use the following information for ECE incorporated: -If ECE's return on assets (ROA)is 12%,then ECE's net income is:

The Dodd-Frank Wall Street Reform and Consumer Protection Act does the following:

Dustin's Donuts experienced a decrease in the value of the trademark of a company it acquired two years ago.This reduction in value results in:

Suppose Novak Company experienced a reduction in its ROE over the last year.This decrease could be attributed to:

Use the information for the question(s)below. In November 2019,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 debt to equity ratio is closest to:

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 using the market value of equity,the debt to equity ratio for Luther in 2009 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 Net Profit Margin for the year ending December 31,2018 is closest to:

The statement of financial position is also known as the:

Which of the following statements regarding the income statement is INCORRECT?

Which of the following is (are)deducted from EBIT to determine pretax income?

The DuPont Identity expresses the firm's ROE in terms of:

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 assets (ROA)for the year ending December 31,2019 is closest to:

Use the table for the question(s)below. Consider the following balance sheet: -Luther Corporation's cash ratio for 2019 is closest to: