Exam 20: Company Performance: Comprehensive Evaluation

Xenetech Industries gathered the following selected account balance information for the years ended December 31,2010 and 2009:                                                       12/31/10 12/31/09 Curyent Assets                                    $\$ 90,000 \quad \$ 122,000$ Long-Term Assets                              $368,000 \quad 316,000$ Curyent Liabilities                               $64,000 \quad 88,000$ Long-Term Liabilities                         $112,000 \quad 134,000$ Owners' Equity                                      282,000      $216.000$ Net Sales                                                 439,000 Cost of Goods Sold                                  206,000 Net Income                                             $115.000$ Calculate the following ratios for 2010: ( A)Return on Assets (b)Return on Owners' Equity (c)Asset Turnover (d)Return on Sales (e)DuPont ROI (f)Debt-to-Equity

Use the following to answer questions The Ventura Company reported total stockholders' equity of $500,000 at December 31, 2010. In addition, there were 80,000 shares of common stock and zero shares of preferred stock outstanding for the entire year. During 2010, Ventura earned net income equal to $75,000, which included deductions of $7,000 for interest and $11,000 for income taxes. Total dividends paid to common stockholders during the year were $60,000. The company's statement of cash flows showed $56,000 in net cash inflows from operating activities, and its stock was selling for $17 per share on December 31, 2010. -The dividend yield was:

The entire group of creditors and investors who provide capital to businesses to allow them to finance their investments is collectively referred to as a:

Use the following to answer questions -Using horizontal analysis,the figure that would appear in the percent column for Operating income is:

When conducting an audit,the auditor can render one of the following.Which one indicates that the auditor was not able to complete the audit and the CPA can not render an opinion.

All of the following ratios are generally used to assess a firm's liquidity except:

Use the following to answer questions Little Deer Industries gathered the following year-end data (in thousands) for 2010 and 2009: Curent Assets Long-Tenn Arsets 885 585 Curtert Liabilities 385 385 Long-Term Liabilities 575 575 Owners' Equity 575 265 Net Sales 975 775 Gross Margir 485 365 Net Income 255 100 -The asset turnover ratio for 2010 was:

Use the following to answer questions Pioneer Industries gathered the following year-end data (in thousands) for 2010 and 2009: Curent Assets Long-Tenn Arsets 790 720 Curtert Liabilities 280 310 Long-Term Liabilities 410 440 Owners' Equity 445 335 Net Sales 830 790 Gross Margir 375 355 Net Income 120 105 -The DuPont ROI for 2010 was:

What is the role of auditors in capital markets? How is this role affected by the fact that auditors are paid by the firms they audit?

Hot Inc.has the below financial information.Calculate the inventory turnover ratio and explain how it is used.(show your work). $\underline{\text { Income Statement Info.} }$ Sales                                    300,000 Cost of Goods Sold             $\underline{100,000}$ Gross Marein                       200,000 $\underline{\text { Balance Sheet Info. }}$ Beginning B alance Inventory                        150,000 Ending Balance Inventory                              100,000 $\underline{\text { Other Info: }}$ Purchases                                                        50,000

If a company's balance sheet reported accounts receivable equal to $38,500,total current assets of $205,000,and total assets of $510,000,then a vertical analysis of the balance sheet would show a percentage figure for accounts receivable equal to:

Use the following to answer questions Big Deer Industries gathered the following year-end data (in thousands) for 2010 and 2009:                                                         $2010 \quad 2009$ Current Assets \ 450 \ 500 Long-Term Assets 810 620 Current Liabilities 310 420 Long-Term Liabilities 500 610 Owners' Equity 500 300 Net Sales 900 810 Gross Margin 410 400 Net Tncome 180 13 -The return on assets for 2010 was:

Which of the following would be least useful in assessing a firm's long-term debt-paying ability?

The purpose of an audit opinion is.

What are the two elements of return on assets?

Which of the following would be most useful to you in deciding whether or not to make a short-term loan to a firm?

Use the following to answer questions -Using horizontal analysis,the figure that would appear in the percent column for Net sales is:

Given the following information,calculate the current ratio: Curent Arsets \ 85,000 Long-Term Liabilities -0- Net Income \ 30,000 Return on Assets* 12.5\% Debt-to-Equity Ratio 20.0\% * Based on ending balance of assets

Use the following to answer questions Big Deer Industries gathered the following year-end data (in thousands) for 2010 and 2009:                                                         $2010 \quad 2009$ Current Assets \ 450 \ 500 Long-Term Assets 810 620 Current Liabilities 310 420 Long-Term Liabilities 500 610 Owners' Equity 500 300 Net Sales 900 810 Gross Margin 410 400 Net Tncome 180 13 -The current ratio at the end of 2010 was: