Exam 3: Working With Financial Statements

A Kingston firm has sales of $49,800, costs of $36,100, interest paid of $380, and depreciation of $3,200. The tax rate is 35 %. What is the value of the cash coverage ratio?

What was inventory turnover for 2018?

Water Forms, Inc. has sales of $268,900, net income of $34,800, net fixed assets of $146,700, and current assets of $98,200. The firm has $46,900 in inventory. What is the common-size statement value of inventory?

Profit margin is defined as:

It is often said that anyone with a pencil can calculate financial ratios, but it takes a brain to interpret them. What kinds of things should the analyst keep in mind when evaluating the financial statements of a given firm?

Etling Eccentricities has 400,000 shares of common stock outstanding, net income after tax of $1.2 million, retained earnings of $17 million, and total equity of $35 million. What is EE's earnings per share?

An equity multiplier of 0.64 means that for every $1 the firm raises in new equity, the firm can:

The financial ratio days' sales in inventory is measured as:

The financial ratio days' sales in receivables is measured as:

Calculate the current ratio given the following information: current liabilities = $40,000; sales = $90,000; cost of goods sold = $32,000; cash ratio = 1.10; accounts receivable turnover = 5; inventory turnover = 3.

What was the total asset turnover in 2018?

A firm has total debt of $1,850 and a debt-equity ratio of.64. What is the value of the total assets?

The most effective methods of directly evaluating the financial performance of a firm is to compare the current financial ratios to those of the same firm from prior time periods and compare a firm's financial ratios to those of other firms in the firm's peer group who have similar operations.

A reduction in interest expense, all else constant, will cause a(n):

Use the following statement of financial position and statement of comprehensive income What is the net working capital to total assets ratio for Bluebird for 2018?

A price earnings ratio of 14 means that:

Calculate the value of total equity given the following information: total debt ratio = 0.52; total assets = $25,000.

Assume Marble Comics' days' sales in inventory ratio was 120 days in 2010. By how much did it change in 2018?

Creditors are most likely interested in the:

The following statement of financial position and statement of comprehensive income should be used. What is Woodburn's total debt ratio for 2018?