Exam 12: Analysis and Interpretation of Financial Statements

The following information relates to Corte, Inc. for the current year: a. Compute Corte's earnings per share. b. Compute Corte's price-earnings ratio at December 31.

At December 31, Williams Company has total assets of $500,000, total liabilities of $300,000, and total owner's equity of $200,000. At December 31, Williams Company's debt-to-equity ratio is:

The income statements for Sommerset Corporation for 2019 and 2018 follow: a. Prepare a common-size income statement for 2019 and 2018. Round to one decimal place. b. Comment on the most significant changes.

Listed below are six items or sections that may be found in a multiple-step income statement. -Discontinued operations

During the current year, Darnsworth Company had 50,000 shares of $10 par value common stock and 7,000 shares of 8%, $30 par value convertible preferred stock outstanding. Darnsworth Company's net income was $450,000. Compute earnings per share for the year.

The partial balance sheets and income statements for Fun Merchandise, Inc., for fiscal years ending June 30, 2019 and 2018 follow (in millions): Required a. Calculate accounts receivable turnover for 2019 and 2018. Accounts receivable in 2017 totaled $6,629 million. Has accounts receivable turnover improved during the year or worsened? b. Calculate inventory turnover for 2019 and 2018. Inventories in 2017 were $6,819 million. Has inventory turnover improved during the year or worsened? c. Calculate asset turnover for 2019 and 2018 considering that 2017 total assets are $138,014 million.

Use the following selected balance sheet and income statement information for Gardening Supply Co. (in millions) to compute the gross profit percentage to the nearest hundredth of a percent.

Consider the following results for Winsberg Webcom: Prepare the income statement for this company assuming a 35% income tax rate. Omit the statement heading.

All things equal, the higher a company's inventory turnover rate, the better.

Selected recent balance sheet and income statement information for the communication giants, Horizon Communications, Inc., and New Phone Inc., follow: a. Compute accounts receivable turnover for Horizon Communications, Inc. and New Phone, Inc. . b. Interpret and comment on the differences between the receivables turnover rates between each company assuming the industry average is 9.0 times.

The operating-cash-flow-to-current-liabilities ratio is computed by dividing a firm's a net cash flow from operating activities by:

World Airlines has no preferred stock outstanding. The company had 50,000 shares of common stock outstanding on January 1 and issued 20,000 additional shares on April 1. If World's net income was $359,000, the company should report earnings per share of (to the nearest cent)

The following is selected balance sheet and income statement information for Menendez Company. Compute the following ratios: a. Gross profit percentage b. Profit margin c. Asset turnover d. Return on assets e. Return on common stockholders' equity (Menendez Company has no preferred stock)

Selected balance sheet and income statement information from the Electric Company for fiscal years 2018 through 2020 follows (Amounts in millions): a. Compute the times-interest-earned ratio for each year and discuss any trends. b. What concerns about Electric's ability to meet its interest obligations might creditors have? Explain.

At December 31, Belinda, Inc. had 500,000 shares of common stock issued and outstanding, 250,000 of which had been issued and outstanding throughout the year and 250,000 of which were issued on July 1. Net income for the year ended December 31, was $795,000. What is Belinda's 2013 earnings per common share (to the nearest cent)?