Exam 3: Working With Financial Statements

The following statement of financial position and statement of comprehensive income should be used. How many dollars of sales are being generated by every $1 that Woodburn has in total assets($ in Thousands)? (Use 2015 assets)

Without making reference to its formula, provide a definition of average collection period.

What was Marble Comics' total debt ratio in 2015?

On the statement of cash flows, the change in current assets is listed in the section entitled:

Sales are $75,000, cost of goods sold is $35,000 and inventory is $5,000. What is the number of days' sales in inventory?

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

What are the benefits of developing common size financial statements?

Calculate net income given the following information: tax rate = 30%; accounts receivable = $900; receivable turnover = 5 times; inventory = $500; inventory turnover = 3.20 times; operating Expenses = $700; interest expense = $200.

Little's Inc. provides a 10% return on equity. Sales are $100,000 on total assets of $140,000 and total equity of $85,000. What is the profit margin?

Ratios that measure how efficiently a firm uses its assets to generate sales are known as:

A Vancouver firm has a debt-equity ratio of .56. What is the total debt ratio?

Which of the following is a use of cash?

A source of cash is defined as:

If shareholders could only have access to two financial ratios for a firm, which two ratios presented in this chapter do you think they would select to review and why?

The following statement of financial position and statement of comprehensive income should be used. How will Woodburn's accounts receivable appear on the statement of cash flows for 2015($ in Thousands)?

A decrease in which one of the following is a source of cash?

The financial manager of Mystery, Inc. tells her banker that Mystery's accounts receivable declined by $275,000 that day. Based on this, the bank knows that Mystery's current ratio:

The higher the inventory turnover measure, the:

Which of the following statements is incorrect?

During 2015, the quick ratio: