Exam 3: Working With Financial Statements

Tron, Inc. of Guelph has a times interest earned ratio of 4.1. Based on this ratio, a creditor knows that Tron's EBIT must decline by more than __________ before Tron will be unable to cover its interest Expense.

Activities of the firm that generate cash are known as:

Which one of the following is a use of cash?

A firm has 5,000 shares of stock outstanding, sales of $6,000, net income of $800, a price-earnings ratio of 10, and a book value per share of $.50. What is the market-to-book ratio?

Ratios that measure how efficiently a firm's management uses its assets and equity to generate bottom line net income are known as _____ ratios.

What was the return on equity for 2015?

Creditors are most likely interested in the:

Bentley and Moore has net working capital of $6,900, net fixed assets of $86,100, sales of $156,000, and current liabilities of $41,700. How many dollars' worth of sales are generated from Every $1 in total assets?

The following statement of financial position and statement of comprehensive income should be used. What is Woodburn's times interest earned ratio for 2015?

Without making reference to its formula, provide a definition of days' sales in inventory.

Second Cups has a price-earnings ratio of 16. Tam Hortons has a price-earnings ratio of 19. Thus, you can state with certainty that one share of stock in Tam Hortons':

According to the statement of cash flows, an increase in inventory will _____ the cash flow from _____ activities.

A Victoria firm has total assets of $126,740 and net fixed assets of $82,408. The average daily operating costs are $1,211. What is the value of the interval measure?

Calculate total current assets given the following information. Cash $10,000; supplies $3,000; average collection period 54.75 days; days' sales in inventory 91.25 days; sales $80,000; COGS $60,000.

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

The financial manager of ABC, Inc. would like to somehow do a comparison of financial statements to determine how ABC, Inc. is performing both historically and competitively. Develop and explain a plan for performing these comparisons.

Jeminson's Hardware has accounts payable of $682, inventory of $3,608, cash of $340, fixed assets of $4,211, accounts receivable of $418, and long-term debt of $3,750. What is the value of the Net working capital to total assets ratio?

What was the change in the debt-equity ratio from 2014 to 2015?

How would a $5,000 increase in AR and a $2,000 decrease in inventory affect cash?

Calculate gross profit given the following information: accounts receivable = $3,500; inventory = $4,500; receivable turnover = 80 times; inventory turnover = 18 times.