Exam 12: Performance Evaluation Revisited: a Balanced Approach

The 2020 and 2021 partial balance sheets for Myers Manufacturing Company appear below: Required: a.Calculate Myers' current ratio for 2021. b.Calculate Myers' debt ratio for 2021. c.Calculate Myer's debt-to-equity ratio for 2021.

Utica Corporation reported the following financial information: Required: a.What is the trend percentage for cash in 2022 with 2020 as the base year? b.What is the trend percentage for inventory in 2022 with 2020 as the base year?

Which of the following authorities require that companies present comparative financial statements that include both the current year and the previous year?

In preparing a common-size balance sheet, you express all asset account balances as a percentage of cash.

Hannah Corporation purchased merchandise totaling $180,000 during the year.At the end of the year, the income statement showed $200,000 of cost of goods sold and ending inventory to $40,000.What was Hannah's inventory turnover?

The formula for return on common stockholders' equity is, net sales revenue minus preferred dividends, divided by average common stockholders' equity.

Barber Industries reported net sales of $92,000, net income of $32,000, dividends paid to preferred stockholders of $7,000, and dividends paid to common stockholders of $10,000.The average number of shares outstanding is 5,000.What is the earnings per share?

Horizontal analysis is

The quality of assets is assessed through the profitability ratios.

The average collection period is calculated as

The most common measure of short-term liquidity is the

Which of the following is the formula for calculating the percentage in trend analysis?

Barber Industries reported net sales of $92,000, net income of $32,000, dividends paid to preferred stockholders of $7,000, dividends paid to common stockholders of $10,000, average number of shares outstanding is 5,000 and average common stockholders' equity of $96,000.What is the return on common stockholders' equity?

Debt is not a free resource because

Phelps Piping Company manufactures PVC pipe.The company has provided the following selected financial information: Required: a.What is Phelps' average days to sell inventory for 2021? b.What is Phelps' debt ratio for 2021?

In a trend analysis of cost of goods sold over the last three months, all cost of goods sold accounts are shown as a percentage of the current quarter.

Answer the following questions related to liquidity ratios. a.What does liquidity mean? b.List two reasons liquidity is important to companies. c.What is the difference between working capital and current ratio? d.What could cause a company's current ratio to be high, but its acid-test ratio to be low?

The 2020, 2021, and 2022 partial balance sheets for Ottoman Manufacturing Company appear below. Net credit sales for Ottoman were $126,000 for 2020, $120,000 for 2021 and $114,000 for 2022, while cost of goods sold was $84,000 for 2020, $82,400 for 2021 and $72,500 for 2022. What is the average number of days to sell inventory for 2022?

In preparing a common-size income statement, you express all revenue and expense account as a percentage of

The formula for preparing a common-size income statement is