Exam 13: Measuring and Evaluating Financial Performance

Which of the following is a profitability ratio?

Which of the following measures would assist in assessing the profitability of a company?

The primary objective of external financial reporting is to:

Which balance sheet line item has the highest percentage increase from the prior year to the current year? Current Year Prior Year Cash \ 54,00C \ 36,000 Accounts Receivable 18,00 72,000 Inventory 108,00 54,000 Prepaid Insurance 18,00C 27,000

Match each term with the appropriate definition.Not all definitions will be used. -Trend Analysis

Sheffield Company has $145,000 of inventory at the beginning of the year and $131,000 at the end of the year.Sales revenue is $1,972,800,cost of goods sold is $1,145,400,and net income is $248,400 for the year.On average,the number of days to sell inventory is approximately:

The primary objective of financial accounting and reporting is to provide:

Which of the following types of items would you be most likely to see below the income tax expense line on an income statement?

Willow Manufacturing had net Accounts Receivable of $600,000 at the beginning of the year and $740,000 at the end of the year.Net Sales Revenue for 2019 was $5,200,000.What is the days to collect from customers?

Nonrecurring items such as a loss from discontinued operations is reported on the income statement:

The comparative financial statements of Seward,Inc.include the following data: Curyent Year Prior Year Income Statement Net Sales Revenue Cost of Goods Sold 99,000 84,600 Operating Expenses 70,200 57,600 Interest Expense 6,300 6,300 Income Tax Expense 9,000 7,200 Net Income 49,500 24,300 Balance Sheet Current Assets Plant, Property and Equipment, Net 176,400 189,000 Current Liabilities 81,000 68,400 Long-Term Liabilities 77,400 77,400 Stockholders' Equity 225,000 214,200 Total Liabilities \& Stockholders' Equity 383,400 360,000 The fixed asset turnover ratio for the current year is closest to:

Webster,Inc.has the following information: Net income 30.000 Stock price (per share) \2 0 Average number of shares outstanding 10,000 Average amount of stockholders' equity \9 0,000 What is the Price/Earnings ratio?

Which events may indicate going-concern problems?

The ratio that measures how many times a company replenishes its inventory in a year is the:

Puffin Turnovers,Inc.'s fixed asset turnover was 0.9 while Muffin Tops,Inc.'s fixed asset turnover was 0.6.Which of the following statements about Puffin compared with Muffin is correct?

Match each term with the appropriate definition.Not all definitions will be used. -Liquidity

Which of the following ratios is calculated by dividing current assets by current liabilities?

Which of the following is calculated by dividing cost of goods sold by average inventory and then dividing this result into 365 days?

Benchmarks are useful when evaluating a company's performance.

The following information is available for a company for the current year: Net Sales Revenue \ 345,000 Cost of Goods Sold 205,000 Average Accounts Receivable 32,500 Average Inventory 9,450 Average Net Fixed Assets 81,250 Average Total Assets 130,000 Required: Part a.Calculate the receivables turnover ratio for the current year. Part b.Calculate the days to collect for the current year. Part c.Calculate the inventory turnover ratio for the current year. Part d.Calculate the days to sell for the current year. Round all ratios to two decimal points.