Exam 14: Financial Performance Measurement

For 2013,Black & White Corporation had average total assets of $300,000,net sales of $250,000,net income of $20,000,net cash flows from operating activities of $30,000,dividend payments of $15,000,purchases of plant assets of $70,000,and sales of plant assets of $30,000.Using this information,compute (a)cash flow yield,(b)cash flows to sales,(c)cash flows to assets,and (d)free cash flow.Round amounts to one decimal place.

Days' payable measures the relative size of accounts payable.

If sales for 2011 (the base year),2012,and 2013 are $20,000,$15,600,and $29,600,respectively,the index numbers assigned to 2012 and 2013,respectively,are

Ratio analysis is useful only if the ratio states a meaningful relationship between two numbers.

One reason that a common-size statement is a useful tool in financial performance evaluation is that it enables the user to

Both write-downs and restructurings reduce current operating income and boost future income by shifting future costs to the current period.

In a common-size balance sheet,which of the following is given a designation of 100 percent?

Which of the following ratios involves the market price of a company's stock?

Dividends yield is a market strength ratio.

Using the following information from an annual report,prepare a vertical analysis of the consolidated statement of earnings for the fiscal year ended June 30,2013.(Round percentage answers to one decimal place.)

Which of the following describes the return on assets ratio?

Accounting methods may be a source of incomparability among companies.

A 20 percent change in net sales will result in a 20 percent change in net income.

Which of the following is the least useful in evaluating a relationship as either favorable or unfavorable?

From the following information,compute the ratios indicated and place the proper numbers in the spaces provided.Assume the average for the year is the same as the ending balances for the balance sheet accounts.Round percentages to one decimal place,and show your work. Westwood had 4,000 shares of common stock issued and outstanding.The market price of common stock at year end was $15.00 per share.Dividends paid in 2013 were $0.60 per share.

A company with a current ratio of 2.4 times will see that ratio decrease when the company

The following data pertain to Bexar Corporation: Calculate the amount of net sales reported for 2013.Use 365 days per year.

The following selected amounts were extracted from the financial statements of H225 Corporation. Compute the following for net sales,cost of goods sold,and gross margin.(Round answers to the nearest tenth of 1 percent.) a.The percentage change from Year 1 to Year 2 b.The percentage change from Year 2 to Year 3 c.The percentage change from Year 3 to Year 4

Interim financial statements are subjected to a full audit by an independent auditor.

A reduction in the value of an asset below its carrying value on the balance sheet is called a