Exam 2: Financial Statements and Ratio Analysis

Molson Coors Inc. Years 1 & 2 ($000's) -Income Statement Molson Coors Inc. Years 1 & 2 ($000s) Referring to the Molson Coors financial statements,what is the most important determinant of the change in ROE?

Balance Sheet for year-ended Dec 31 ($000's) -Blockbuster Inc. Income Statement for year-ended Dec 31 ($000's) Referring to the Blockbuster financial statements,what is the change in ROA from Year 1 to Year 2?

When financial ratios are compared to financial ratios from previous years,a ________ is conducted.

Ratio interaction refers to

If a firm has 100,000 shares of common stock outstanding and has just recorded a $45,000 profit,what is its price/earnings ratio if its current share price is $35?

Which of the following is not a commonly used source of information for financial analysis?

Molson Coors Inc. Years 1 & 2 ($000's) -Income Statement Molson Coors Inc. Years 1 & 2 ($000s) Referring to the Molson Coors financial statements,what is the change in ROA from Year 1 to Year 2? (ΔROA = - )

Balance Sheet for year-ended Dec 31 ($000's) -Blockbuster Inc. Income Statement for year-ended Dec 31 ($000's) Referring to the Blockbuster financial statements,what is the most important underlying reason for the change in ROE?

Tootsie Roll Industries, Inc. has been engaged in the manufacture and sale of candy since 1896. Its products are sold under the familiar brand names Tootsie Roll, Tootsie Roll Pops, Charms, Blow Pops, Cella's, Mason Dots and Mason Crows. Tootsie Roll operates four plants in Illinois, New York, Tennessee and Mexico. Tootsie Roll is traded on the New York Stock Exchange and maintains its head office in Chicago, Illinois. Tootsie Roll's financial statements for Year 5 and Year 6 are provided below. Tootsie Roll Industries Inc. Balance Sheet As of December 31, Year 6 ($000s) -Tootsie Roll Industries Inc. Income Statement As of December 31,Year 6 ($000s) Selected Financial Ratios Referring to the financial statements for Tootsie Roll,what is the difference between the Industry and Tootsie for the return on equity? (Tootsie - Industry)

All else held constant,an increase in leverage should increase the ROE.

Market ratios differ from other ratios because

A firm has sales of $1 million,net income of $250,000,total current assets of $300,000,and accounts receivable of $200,000.The firm's accounts receivable turnover is

The four-digit codes used by the government to classify firms into industries are known as

Tootsie Roll Industries, Inc. has been engaged in the manufacture and sale of candy since 1896. Its products are sold under the familiar brand names Tootsie Roll, Tootsie Roll Pops, Charms, Blow Pops, Cella's, Mason Dots and Mason Crows. Tootsie Roll operates four plants in Illinois, New York, Tennessee and Mexico. Tootsie Roll is traded on the New York Stock Exchange and maintains its head office in Chicago, Illinois. Tootsie Roll's financial statements for Year 5 and Year 6 are provided below. Tootsie Roll Industries Inc. Balance Sheet As of December 31, Year 6 ($000s) -Tootsie Roll Industries Inc. Income Statement As of December 31,Year 6 ($000s) Selected Financial Ratios Referring to the financial statements for Tootsie Roll,what is the difference between the Industry and Tootsie for total asset turnover? (Tootsie - Industry)

Molson Coors Inc. Years 1 & 2 ($000's) -Income Statement Molson Coors Inc. Years 1 & 2 ($000s) Referring to the Molson Coors financial statements,did ROE rise or fall from Year 1 to Year 2?

Balance Sheet for year-ended Dec 31 ($000's) -Blockbuster Inc. Income Statement for year-ended Dec 31 ($000's) Referring to the Blockbuster financial statements,which of the following ratios decreased from Year 1 to Year 2: I.Equity Multiplier II.Net Profit Margin III.Total Asset Turnover

What is the return on equity if net income was $55,000,total assets are $115,000,EBIT was $100,000,and equity is $75,000?

All of the following are problems with cross-sectional financial analysis EXCEPT that

________ ratios measure the efficiency with which assets are converted to sales or cash.

Tootsie Roll Industries, Inc. has been engaged in the manufacture and sale of candy since 1896. Its products are sold under the familiar brand names Tootsie Roll, Tootsie Roll Pops, Charms, Blow Pops, Cella's, Mason Dots and Mason Crows. Tootsie Roll operates four plants in Illinois, New York, Tennessee and Mexico. Tootsie Roll is traded on the New York Stock Exchange and maintains its head office in Chicago, Illinois. Tootsie Roll's financial statements for Year 5 and Year 6 are provided below. Tootsie Roll Industries Inc. Balance Sheet As of December 31, Year 6 ($000s) -Tootsie Roll Industries Inc. Income Statement As of December 31,Year 6 ($000s) Selected Financial Ratios Referring to the financial statements for Tootsie Roll and based on the Du Pont analysis,what main reasons explain the difference(s)between Tootsie's ROE and the industry average ROE? I.Tootsie does not have enough leverage. II.Tootsie has more leverage than the industry. III.Tootsie manages their assets poorly - low total asset turnover. IV.Tootsie manages their assets poorly - high total asset turnover.