Exam 2: Financial Statements and Ratio Analysis

Years 1 & 2 ($000,000s) -Income Statement CFM Majestic Inc. Years 1 & 2 ($000,000s) Referring to the CFM Majestic financial statements,is the change between Year 1 and Year 2 in Total Asset Turnover important in explaining the change in ROA?

If net income after tax was $10,000,interest expense was $4,000,and taxes were $1,000,what is the net profit margin if sales were $50,000?

The DuPont analysis calculates ROE as the product of

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 Net Profit Margin in Year 1?

Your banker is concerned about your company's liquidity.Which of the following actions would increase the firm's current ratio and ease the bank's concern?

When would the "return on equity" equal the "return on assets"?

Which of the following is a variation of the accounting identity?

A firm has current assets of $350,000,current liabilities of $200,000,cost of goods sold of $250,000,and inventory of $75,000.The firm's inventory turnover is

The right-hand side of the balance sheet shows

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 equity multiplier? (Tootsie - Industry)

The quick ratio improves upon the current ratio by

Which of the following is not included in a cash flow statement?

The quick ratio is 1.0.Current assets are $100,000 and current liabilities are $80,000.What is the amount in the inventory account?

What is the quick ratio if cash is $10,000,accounts receivable are $25,000,inventories are $30,000,accounts payable are $40,000,and accrued payroll is $15,000?

What is a firm's total asset turnover if its fixed assets are $120,000,current assets are $30,000,current liabilities are $44,000,sales were $200,000,and net income was $75,000?

If a firm's total asset turnover is low,but its fixed asset turnover is high,which of the following ratios should an analyst examine to locate the source of the problem?

All of the following are part of a financial analysis EXCEPT

Years 1 & 2 ($000,000s) -Income Statement CFM Majestic Inc. Years 1 & 2 ($000,000s) Referring to the CFM Majestic financial statements,what happened to ROA from Year 1 to Year 2?

A firm has accounts receivable of $150,000.During the year,total sales are $500,000,of which $300,000 are cash sales.What is the average collection period?

Each of the following is a ratio category EXCEPT