Exam 2: Introduction to Financial Statement Analysis

Use the table for the question(s) below. Consider the following income statement and other information: -For the year ending December 31,2006 Luther's earnings per share are closest to:

Use the table for the question(s) below. Consider the following balance sheet: -If in 2006 Luther has 10.2 million shares outstanding and these shares are trading at $16 per share,then Luther's market-to-book ratio would be closest to:

Which of the following adjustments is NOT correct if you are trying to calculate cash flow from financing activities?

In response to corporate scandals such as Enron and WorldCom,in 2002 the U.S.Congress passed a law that requires,among other things,that CEOs and CFOs certify the accuracy and appropriateness of their firm's financial statements and increases the penalties against them if the financial statements later prove to be fraudulent.The name of this act is

Creditors often compare a firm's ________ and ________ to assess whether the firm has sufficient working capital to meet its short-term needs.

Which of the following is NOT a reason why cash flow may not equal net income?

The income statement lists the firm's ________.

Use the table for the question(s) below. Consider the following income statement and other information: -Assuming that Luther has no convertible bonds outstanding,then for the year ending December 31,2006 Luther's diluted earnings per share are closest to:

The third party who checks annual financial statements to ensure that they are prepared according to Canadian GAAP and verifies that the information reported is reliable is the

Which of the following is NOT an operating expense?

What information do the notes to financial statements provide?

Use the table for the question(s) below. Consider the following income statement and other information: -Luther's Net Profit Margin for the year ending December 31,2005 is closest to:

________ is the difference between total asset value minus total liability value.

Use the table for the question(s) below. Consider the following balance sheet: -Luther's current ratio for 2006 is closest to:

The debt-to-equity ratio is calculated by dividing the ________ by ________.

Use the table for the question(s) below. Consider the following income statement and other information: -Luther's earnings before interest,taxes,depreciation,and amortization (EBITDA)for the year ending December 31,2006 are closest to:

Use the table for the question(s) below. Consider the following income statement and other information: -Luther's price - earnings ratio (P/E)for the year ending December 31,2006 is closest to:

Use the table for the question(s) below. Consider the following income statement and other information: -Luther's return on assets (ROA)for the year ending December 31,2006 is closest to:

Use the table for the question(s) below. Consider the following income statement and other information: -Luther's price - earnings ratio (P/E)for the year ending December 31,2006 is closest to:

Use the table for the question(s) below. Consider the following income statement and other information: -Luther's Operating Margin for the year ending December 31,2005 is closest to: