The following information was available for the year ended December 31, 2019: \[\begin{array} { l r } \text { Net income } & \$ 180,000 \\ \text { Average total assets } & 2,000,000 \\ \text { Dividends per share } & 1.44 \\ \text { Earnings per share } & 4.00 \\ \text { Market price per share at year-end } & 72.00 \end{array}\] Required: (a.)Calculate the price/earnings ratio for 2019. (b.)Calculate the dividend payout ratio for 2019. (c.)Calculate the dividend yield for 2019.

(a.) Price/earning ratio = Market price

The following information was available for the year ended December 31, 2019: \[\begin{array} { l r } \text { Earnings before interest and taxes (operating income) } & \$ 9 7 , 5 0 0 \\ \text { Interest expense } & 15,000 \\ \text { Income tax expense } & 22,500 \\ \text { Net incorne } & 60,000 \\ \text { Total assets at year-end } & 288,000 \\ \text { Total liabilities at year-end } & 216,000 \end{array}\] Required: (a.)Calculate the debt ratio at December 31, 2019. (b.)Calculate the debt/equity ratio at December 31, 2019. (c.)Calculate the times interest earned for the year ended December 31, 2019.

(a.) Debt ratio = Total liabilities / (T

The following information was available for the year ended December 31, 2019: \[\begin{array} { l r } \text { Net income } & \$ 50,000 \\ \text { Average total assets } & 600,000 \\ \text { Dividends per share } & 1.40 \\ \text { Earnings per share } & 5.00 \\ \text { Market price per share at year-end } & 70.00 \end{array}\] The dividend yield for 2019 was:

A) 1.4% B) 2.0% C) 8.3% D) 28.0% A) 1.4% B) 2.0% C) 8.3% D) 28.0%

The following information was available for the year ended December 31, 2019: \[\begin{array} { l r } \text { Sales } & \$ 300,000 \\ \text { Net income } & 50,000 \\ \text { Average total assets } & 750,000 \\ \text { Average total stockholders' equity } & 500,000 \end{array}\] ROE for the year ended December 31, 2019 was:

A) 6.7% B) 10.0% C) 16.7% D) 20.0% A) 6.7% B) 10.0% C) 16.7% D) 20.0%

The following information was available for the year ended December 31, 2019: $\begin{array}{lr} \text { Net sales } & \$ 300,000 \\ \text { Cost of goods sold } & 210,000 \\ \text { Average accounts receivable for the year } & 15,000 \\ \text { Accounts receivable at year-end } & 18,000 \\ \text { Average inventory for the year } & 60,000 \\ \text { Inventory at year-end } & 70,000 \end{array}$ The accounts receivable turnover for 2019 was:

A) 11.7 times B) 14.0 times C) 16.7 times D) 20.0 times A) 11.7 times B) 14.0 times C) 16.7 times D) 20.0 times

The following information was available for the year ended December 31, 2019: $\begin{array}{lr} \text { Net sales } & \$ 300,000 \\ \text { Cost of goods sold } & 210,000 \\ \text { Average accounts receivable for the year } & 15,000 \\ \text { Accounts receivable at year-end } & 18,000 \\ \text { Average inventory for the year } & 60,000 \\ \text { Inventory at year-end } & 70,000 \end{array}$ The number of days' sales in accounts receivable for 2019, using year- end accounts receivable were:

A) 18.3 days B) 21.9 days C) 26.1 days D) 31.1 days A) 18.3 days B) 21.9 days C) 26.1 days D) 31.1 days

The following information was available for the year ended December 31, 2019: $\begin{array}{lr} \text { Net sales } & \$ 300,000 \\ \text { Cost of goods sold } & 210,000 \\ \text { Average accounts receivable for the year } & 15,000 \\ \text { Accounts receivable at year-end } & 18,000 \\ \text { Average inventory for the year } & 60,000 \\ \text { Inventory at year-end } & 70,000 \end{array}$ The number of days' sales in inventory for 2019, using year-end inventories were:

A) 73.0 days B) 85.2 days C) 104.3 days D) 121.7 days A) 73.0 days B) 85.2 days C) 104.3 days D) 121.7 days

The following information was available for the year ended December 31, 2019: $\begin{array}{lr} \text { Net sales } & \$ 300,000 \\ \text { Cost of goods sold } & 210,000 \\ \text { Average accounts receivable for the year } & 15,000 \\ \text { Accounts receivable at year-end } & 18,000 \\ \text { Average inventory for the year } & 60,000 \\ \text { Inventory at year-end } & 70,000 \end{array}$ The inventory turnover for 2019 was:

A) 3.0 times B) 3.5 times C) 4.3 times D) 5.0 times A) 3.0 times B) 3.5 times C) 4.3 times D) 5.0 times

The following information was available for the year ended December 31, 2019: $\begin{array}{lr} \text { Net income } & \$ 50,000 \\ \text { Average total assets } & 600,000 \\ \text { Dividends per share } & 1.40 \\ \text { Earnings per share } & 5.00 \\ \text { Market price per share at year-end } & 70.00 \end{array}$ The dividend payout ratio for 2019 was:

A) 2.0% B) 8.3% C) 28.0% D) 40.0% A) 2.0% B) 8.3% C) 28.0% D) 40.0%

The following information was available for the year ended December 31, 2019: \[\begin{array} { l r } \text { Earnings before interest and taxes (operating income) } &\$ 50,000 \\ \text { Interest expense } & 10,000 \\ \text { Income tax expense } & 12,000 \\ \text { Net income } & 28,000 \\ \text { Total assets at year-end } & 200,000 \\ \text { Total liabilities at year-end } & 120,000 \end{array}\] The times interest earned for the year ended December 31, 2019 was:

A) 2.8 times B) 4.2 times C) 5.0 times D) 6.0 times A) 2.8 times B) 4.2 times C) 5.0 times D) 6.0 times

The following amounts were reported on the December 31, 2019, balance sheet: \[\begin{array} { l r } \text { Cash } &\$ 8,000 \\ \text { Land } & 20,000 \\ \text { Accounts payable } & 15,000 \\ \text { Bonds payable } & 120,000 \\ \text { Merchardise irventory } & 30,000 \\ \text { Retained earnirgs } & 80,000 \\ \text { Buildings and equipment, net of accumulated depreciation } & 180,000 \\ \text { Accounts receivable } & 22,000 \\ \text { Common stock } & 40,000 \\ \text { Wages payable } & 5,000 \end{array}\] Working capital at December 31, 2019 was:

A) $10,000. B) $40,000. C) $60,000. D) $120,000. A) $10,000. B) $40,000. C) $60,000. D) $120,000.

Exam 11: Financial Statement Analysis

The following information was available for the year ended December 31, 2019: Net income \ 180,000 Average total assets 2,000,000 Dividends per share 1.44 Earnings per share 4.00 Market price per share at year-end 72.00 Required: (a.)Calculate the price/earnings ratio for 2019. (b.)Calculate the dividend payout ratio for 2019. (c.)Calculate the dividend yield for 2019.

(Essay)

4.9/5

(47)

Question 21

The inventory turnover calculation:

(Multiple Choice)

4.7/5

(33)

Question 22

When a firm has financial leverage:

(Multiple Choice)

4.9/5

(34)

Question 23

A management that wanted to increase the financial leverage of its firm would:

(Multiple Choice)

4.8/5

(40)

Question 24

If a firm's payment terms for sales made on account to its customers were 2/10, n30, the number of days' sales in accounts receivable would be expected to be:

(Multiple Choice)

4.7/5

(37)

Question 25

The following information was available for the year ended December 31, 2019: Earnings before interest and taxes (operating income) \ 97,500 Interest expense 15,000 Income tax expense 22,500 Net incorne 60,000 Total assets at year-end 288,000 Total liabilities at year-end 216,000 Required: (a.)Calculate the debt ratio at December 31, 2019. (b.)Calculate the debt/equity ratio at December 31, 2019. (c.)Calculate the times interest earned for the year ended December 31, 2019.

(Essay)

4.9/5

(28)

Question 26

The following information was available for the year ended December 31, 2019: Net income \ 50,000 Average total assets 600,000 Dividends per share 1.40 Earnings per share 5.00 Market price per share at year-end 70.00 The dividend yield for 2019 was:

(Multiple Choice)

4.9/5

(42)

Question 27

The following information was available for the year ended December 31, 2019: Sales \ 300,000 Net income 50,000 Average total assets 750,000 Average total stockholders' equity 500,000 ROE for the year ended December 31, 2019 was:

(Multiple Choice)

4.7/5

(30)

Question 28

A leveraged buyout refers to:

(Multiple Choice)

4.8/5

(35)

Question 29

Which of the following is not a category of financial statement ratios?

(Multiple Choice)

4.9/5

(43)

Question 30

The following information was available for the year ended December 31, 2019: Net sales \ 300,000 Cost of goods sold 210,000 Average accounts receivable for the year 15,000 Accounts receivable at year-end 18,000 Average inventory for the year 60,000 Inventory at year-end 70,000 The accounts receivable turnover for 2019 was:

(Multiple Choice)

4.9/5

(27)

Question 31

The following information was available for the year ended December 31, 2019: Net sales \ 300,000 Cost of goods sold 210,000 Average accounts receivable for the year 15,000 Accounts receivable at year-end 18,000 Average inventory for the year 60,000 Inventory at year-end 70,000 The number of days' sales in accounts receivable for 2019, using year- end accounts receivable were:

(Multiple Choice)

4.8/5

(41)

Question 32

When a corporation has both common stock and preferred stock outstanding:

(Multiple Choice)

4.8/5

(35)

Question 33

The following information was available for the year ended December 31, 2019: Net sales \ 300,000 Cost of goods sold 210,000 Average accounts receivable for the year 15,000 Accounts receivable at year-end 18,000 Average inventory for the year 60,000 Inventory at year-end 70,000 The number of days' sales in inventory for 2019, using year-end inventories were:

(Multiple Choice)

4.9/5

(41)

Question 34

The following information was available for the year ended December 31, 2019: Net sales \ 300,000 Cost of goods sold 210,000 Average accounts receivable for the year 15,000 Accounts receivable at year-end 18,000 Average inventory for the year 60,000 Inventory at year-end 70,000 The inventory turnover for 2019 was:

(Multiple Choice)

4.8/5

(42)

Question 35

A common size income statement:

(Multiple Choice)

4.7/5

(37)

Question 36

The following information was available for the year ended December 31, 2019: Net income \ 50,000 Average total assets 600,000 Dividends per share 1.40 Earnings per share 5.00 Market price per share at year-end 70.00 The dividend payout ratio for 2019 was:

(Multiple Choice)

4.9/5

(39)

Question 37

The following information was available for the year ended December 31, 2019: Earnings before interest and taxes (operating income) \ 50,000 Interest expense 10,000 Income tax expense 12,000 Net income 28,000 Total assets at year-end 200,000 Total liabilities at year-end 120,000 The times interest earned for the year ended December 31, 2019 was:

(Multiple Choice)

4.9/5

(44)

Question 38

The following amounts were reported on the December 31, 2019, balance sheet: Cash \ 8,000 Land 20,000 Accounts payable 15,000 Bonds payable 120,000 Merchardise irventory 30,000 Retained earnirgs 80,000 Buildings and equipment, net of accumulated depreciation 180,000 Accounts receivable 22,000 Common stock 40,000 Wages payable 5,000 Working capital at December 31, 2019 was:

(Multiple Choice)

4.9/5

(37)

Question 39

The dividend payout ratio describes:

(Multiple Choice)

4.8/5

(44)

Question 40

The inventory turnover calculation:

When a firm has financial leverage:

A management that wanted to increase the financial leverage of its firm would:

If a firm's payment terms for sales made on account to its customers were 2/10, n30, the number of days' sales in accounts receivable would be expected to be:

The following information was available for the year ended December 31, 2019: Net income \ 50,000 Average total assets 600,000 Dividends per share 1.40 Earnings per share 5.00 Market price per share at year-end 70.00 The dividend yield for 2019 was:

The following information was available for the year ended December 31, 2019: Sales \ 300,000 Net income 50,000 Average total assets 750,000 Average total stockholders' equity 500,000 ROE for the year ended December 31, 2019 was:

A leveraged buyout refers to:

Which of the following is not a category of financial statement ratios?

When a corporation has both common stock and preferred stock outstanding:

A common size income statement:

The following information was available for the year ended December 31, 2019: Net income \ 50,000 Average total assets 600,000 Dividends per share 1.40 Earnings per share 5.00 Market price per share at year-end 70.00 The dividend payout ratio for 2019 was:

The dividend payout ratio describes:

Accountingpresent and Past

Financial Statements and Accounting Conceptsprinciples

Fundamental Interpretations Made From Financial Statement Data

The Bookkeeping Process and Transaction Analysis

Accounting for and Presentation of Current Assets

Accounting for and Presentation of Property, Plant, and Equipment,

Accounting for and Presentation of Liabilities

Accounting for and Presentation of Stockholders Equity

The Income Statement and the Statement of Cash Flows

Corporate Governance, Notes to the Financial Statements,

Managerial Accounting and Cost-Volume-Profit Relationships

Cost Accounting and Reporting

Cost Planning

Cost Control

Cost for Decision Making

Filters