Exam 14: Financial Statement Analysis

Remley Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $3,000.The market price of common stock at the end of Year 2 was $2.70 per share. Required: a.What is the company's times interest earned ratio for Year 2? b.What is the company's debt-to-equity ratio at the end of Year 2? c.What is the company's equity multiplier at the end of Year 2? d.What is the company's earnings per share for Year 2? e.What is the company's price-earnings ratio for Year 2? f.What is the company's dividend payout ratio for Year 2? g.What is the company's dividend yield ratio for Year 2? h.What is the company's book value per share at the end of Year 2?

The gross margin percentage is computed by dividing sales by the gross margin.

A company whose inventory turnover ratio is much slower than the average for its industry may have too much inventory or the wrong sorts of inventory.

The company's acid-test (quick)ratio is closest to:

Gremel Corporation has provided the following financial data: Required: a.What is the company's working capital? b.What is the company's current ratio? c.What is the company's acid-test (quick)ratio?

Which of the following is not a source of financial leverage?

A high price-earnings ratio means that investors are willing to pay a premium for the company's stock.

The company's acid-test (quick)ratio at the end of Year 2 is closest to:

The company's return on equity for Year 2 is closest to:

Cutsinger Corporation has provided the following data from its most recent income statement: The times interest earned ratio is closest to:

Mars Corporation has provided the following data for Year 2: The company's total stockholders' equity at the end of Year 2 amounted to $1,095,000 and at the end of Year 1 to $1,060,000.The company's return on equity for Year 2 is closest to:

The company's return on equity for Year 2 is closest to:

The company's total asset turnover for Year 2 is closest to:

Lindboe Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $4,800.The market price of common stock at the end of Year 2 was $5.46 per share. Required: a.What is the company's times interest earned ratio for Year 2? b.What is the company's debt-to-equity ratio at the end of Year 2? c.What is the company's equity multiplier at the end of Year 2? d.What is the company's net profit margin percentage for Year 2? e.What is the company's gross margin percentage for Year 2? f.What is the company's return on total assets for Year 2? g.What is the company's return on equity for Year 2?

The company's return on total assets for Year 2 is closest to:

Smay Corporation has provided the following data: The accounts receivable turnover for this year is closest to:

If the acid-test ratio is less than one, then paying off some current liabilities with cash will increase the acid-test (quick)ratio.

Goldsmith Corporation has provided the following data: The company's net income in Year 2 was $24,400.The company's book value per share at the end of Year 2 is closest to:

Tempel Corporation has provided the following data: The market price of common stock at the end of Year 2 was $2.77 per share.The company's price-earnings ratio for Year 2 is closest to:

Degollado Corporation's most recent income statement appears below: The beginning balance of total assets was $200,000 and the ending balance was $220,000. Required: Compute the return on total assets.Show your work!