Exam 3: Working With Financial Statements

Which of the following represent problems encountered when comparing the financial statements of two separate entities? I.Either one,or both,of the firms may be conglomerates and thus have unrelated lines of business. II.The operations of the two firms may vary geographically. III.The firms may use differing accounting methods. IV.The two firms may be seasonal in nature and have different fiscal year ends.

Lancaster Toys has a profit margin of 7.5 percent,a total asset turnover of 1.71,and a return on equity of 21.01 percent.What is the debt-equity ratio?

The sources and uses of cash over a stated period of time are reflected on the:

A firm has 160,000 shares of stock outstanding,sales of $1.94 million,net income of $126,400,a price-earnings ratio of 18.7,and a book value per share of $7.92.What is the market-to-book ratio?

If a firm has a debt-equity ratio of 1.0,then its total debt ratio must be which one of the following?

Lassiter Industries has annual sales of $220,000 with 10,000 shares of stock outstanding.The firm has a profit margin of 6 percent and a price-sales ratio of 1.20.What is the firm's price-earnings ratio?

The Dockside Inn has net income for the most recent year of $8,450.The tax rate was 35 percent.The firm paid $1,300 in total interest expense and deducted $1,900 in depreciation expense.What was the cash coverage ratio for the year?

A firm has an interval measure of 48.This means that the firm has sufficient liquid assets to do which one of the following?

The cash coverage ratio directly measures the ability of a firm's revenues to meet which one of its following obligations?

Gladstone Pavers has a long-term debt ratio of 0.6 and a current ratio of 1.6.Current liabilities are $700,sales are $4,440,the profit margin is 9.5 percent,and the return on equity is 19.5 percent.How much does the firm have in net fixed assets?

A common-size income statement is an accounting statement that expresses all of a firm's expenses as percentage of:

A firm has sales of $2,190,net income of $174,net fixed assets of $1,600,and current assets of $720.The firm has $310 in inventory.What is the common-size statement value of inventory?

In general,what does a high Tobin's Q value indicate and how reliable does that value tend to be?

Uptown Men's Wear has accounts payable of $2,214,inventory of $7,950,cash of $1,263,fixed assets of $8,400,accounts receivable of $3,907,and long-term debt of $4,200.What is the value of the net working capital to total assets ratio?

According to the Statement of Cash Flows,a decrease in accounts receivable will _____ the cash flow from _____ activities.

Which one of the following is a use of cash?

Al's has a price-earnings ratio of 18.5.Ben's also has a price-earnings ratio of 18.5.Which one of the following statements must be true if Al's has a higher PEG ratio than Ben's?

What value can the price-sales ratio provide to financial managers that the price-earnings ratio cannot?

Dixie Supply has total assets with a current book value of $368,900 and a current replacement cost of $486,200.The market value of these assets is $464,800.What is the value of Tobin's Q?

Big Guy Subs has net income of $150,980,a price-earnings ratio of 12.8,and earnings per share of $0.87.How many shares of stock are outstanding?