Exam 16: Financial Statement Analysis

A company has a receivables turnover of 15 times. The average net receivables during the period are $430,000. What is the amount of net credit sales for the period?

MATCHING Match the classifications of ratios with each description. a. Liquidity Ratio b. Leverage Ratio c. Profitability Ratio d. Horizontal Analysis e. Trend Analysis -A measure that compares only the most liquid assets to current liabilities

Liquidity ratios measure the ability of a company to meet its current obligations.

Figure 16-1. Starbuck Corporation had net income of $250,000 and paid dividends to common stockholders of $50,000 in 2013. The weighted average number of shares outstanding in 2013 was 50,000 shares. Starbuck Corporation's common stock is selling for $40 per share on the New York Stock Exchange. -Refer to Figure 16-1. Starbuck's price-earnings ratio is

In vertical analysis of the balance sheet, total liabilities are represented by 100%.

Figure 16-1. Starbuck Corporation had net income of $250,000 and paid dividends to common stockholders of $50,000 in 2013. The weighted average number of shares outstanding in 2013 was 50,000 shares. Starbuck Corporation's common stock is selling for $40 per share on the New York Stock Exchange. -Refer to Figure 16-1. Starbuck's dividend payout ratio for 2013 is

The current assets of Caitlin Company are $360,000. The current liabilities are $240,000. The current ratio is

Creditors would like the debt-to-equity ratio to be _______, indicating that stockholders have financed most of the assets of the firm.

Two major forms of common-size analysis are horizontal analysis and vertical analysis.

Horizontal analysis is also known as

MATCHING Match the classifications of ratios with each description. a. Liquidity Ratio b. Leverage Ratio c. Profitability Ratio d. Horizontal Analysis e. Trend Analysis -A measure of the degree of protection afforded creditors in case of insolvency

Jackson Company, a retailer, had cost of goods sold of $140,000 last year. The beginning inventory balance was $8,000 and the ending inventory balance was $11,000. The company's inventory turnover ratio was closest to

The _____________________ gives the number of days inventory is held before being sold.

The Grand Department Store had net credit sales of $12,000,000 and cost of goods sold of $8,000,000 for the year. The average inventory for the year amounted to $1,600,000. The inventory turnover ratio for the year is

Toller Drug Store had net credit sales of $6,000,000 and cost of goods sold of $2,000,000 for the year. The Accounts Receivable balances at the beginning and end of the year were $350,000 and $250,000, respectively. The accounts receivable turnover ratio was

Horizontal analysis involves comparing two or more years' financial data for a single company.

____________ are fractions or percentages computed by dividing one account or line-item amount by another.

MATCHING Match the classifications of ratios with each description. a. Liquidity Ratio b. Leverage Ratio c. Profitability Ratio d. Horizontal Analysis e. Trend Analysis -A measure that tells an investor the proportion of earnings that a company pays in dividends

MATCHING Match the classifications of ratios with each description. a. Liquidity Ratio b. Leverage Ratio c. Profitability Ratio d. Horizontal Analysis e. Trend Analysis -Measures the ability of the company to meet its current obligations

Which of the following formulas would be used to determine the inventory turnover ratio?