Exam 13: Financial Statement Analysis

The financial statements of Elcamino Company appear below: Additional information: a. Cash dividends of $50,000 were declared and paid on common stock in 2017. b. Weighted-average number of shares of common stock outstanding during 2017 was 50,000 shares. c. Market price of common stock on December 31, 2017, was $16 per share. d. Net cash provided by operating activities for 2017 was $70,000. Instructions Using the financial statements and additional information, compute the following ratios for the Lewis Company for 2017. Show all computations.

Ratios are most useful in identifying

A successful discount retail store such as Kmart would probably have

Which measure(s) is(are) useful in evaluating the efficiency in managing inventories? 1) Inventory turnover 2) Days in inventory

Bertram Corporation had net income of $325,000 and paid dividends to common stockholders of $39,000 in 2017. The weighted average number of shares outstanding in 2017 was 50,000 shares. Bertram Corporation's common stock is selling for $52 per share on the New York Stock Exchange. Bertram Corporation's payout ratio for 2017 is

Profitability ratios are frequently used as a basis for evaluating management's operating effectiveness.

The following information pertains to Unique Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. What is the current ratio for this company?

When a horizontal analysis is performed and a zero or negative amount is reported in the base year, then

Under IFRS, the statement of comprehensive income can be prepared under

A common measure of liquidity is

A liquidity ratio measures the

Which one of the following is not a tool in financial statement analysis?

The discontinued operations section of the income statement refers to

The following information is available for Patterson Company: The accounts receivable turnover for 2017 is

A general rule to use in assessing the average collection period is that it

In horizontal analysis, if an item has a negative amount in the base year, and a positive amount in the following year, no percentage change for that item can be computed.

Here is financial information for Valdez Express Inc. Instructions Prepare a schedule showing a horizontal analysis for 2017 using 2016 as the base year.

Horizontal analysis is a technique for evaluating financial statement data

Horizontal analysis is a technique for evaluating a financial statement item in the current year with other items in the current year.