Exam 2: Introduction to Financial Statement Analysis

Use the table for the question(s) below. Consider the following balance sheet: -Luther Corporation's total sales for 2009 were $610.1,and gross profit was $109.0.Inventory days for 2009 is closest to:

The Dodd-Frank Wall Street Reform and Consumer Protection Act does the following:

Assuming that Luther has no convertible bonds outstanding,then for the year ending December 31,2009 Luther's diluted earnings per share are closest to:

Off-balance sheet transactions are required to be disclosed:

Use the table for the question(s) below. Consider the following income statement and other information: -Luther's EBITDA coverage ratio for the year ending December 31,2009 is closest to:

Luther's quick ratio for 2008 is closest to:

U)S.public companies are required to file their annual financial statements with the U.S.Securities and Exchange Commission on which form?

The Sarbanes-Oxley Act (SOX)forced companies to validate their internal financial control processes by:

Use the table for the question(s) below. Consider the following balance sheet: -Luther Corporation's stock price is $39 per share and the company has 20 million shares outstanding.Its Debt -Capital Ratio for 2009 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 31,2008 is closest to:

Use the following information for ECE incorporated: Assets $200 million Shareholder Equity $100 million Sales $300 million Net Income $15 million Interest Expense $2 million -If ECE reported $15 million in net income,then ECE's Return on Equity (ROE)is:

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

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 31,2009 is closest to:

Wyatt Oil has a net profit margin of 4.0%,a total asset turnover of 2.2,total assets of $525 million,and a book value of equity of $220 million.Wyatt Oil's current return-on-equity (ROE)is closest to:

Use the table for the question(s) below. Consider the following income statement and other information: -Luther's return on equity (ROE)for the year ending December 31,2009 is closest to:

Use the table for the question(s) below. Consider the following balance sheet: -Luther Corporation's stock price is $39 per share and the company has 20 million shares outstanding.Its Market value Debt-Equity Ratio for 2009 is closest to:

Suppose Novak Company experienced a reduction in its ROE over the last year.This fall could be attributed to:

If on December 31,2008 Luther has 8 million shares outstanding trading at $15 per share,then what is Luther's market-to-book ratio?

Use the following information for ECE incorporated: Assets $200 million Shareholder Equity $100 million Sales $300 million Net Income $15 million Interest Expense $2 million -IECE's Return on Assets (ROA)is:

If Alex Corporation takes out a bank loan to purchase a machine used in production and everything else stays the same,its equity multiplier will ________,and its ROE will ________.