Exam 2: Introduction to Financial Statement Analysis

Use the table for the question(s)below. Consider the following balance sheet: -Luther Corporation's stock price is $39 and the company has 20 million shares outstanding. Its book value Debt -Equity Ratio for 2012 is closest to:

If Firm A and Firm B are in the same industry and use the same production method, and Firm A's asset turnover is higher than that of Firm B, then all else equal we can conclude:

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

If Moon Corporation has an increase in sales, which of the following would result in no change in its EBIT margin?

If on December 31, 2011 Luther has 8 million shares outstanding trading at $15 per share, then what is Luther's enterprise value?

Use the table for the question(s)below. Consider the following balance sheet: -Luther's quick ratio for 2011 is closest to:

Use the following information for ECE incorporated: Assets $200 million Shareholders' Equity $100 million Sales $300 million Net Income $15 million Interest Expense $2 million -If ECE's shares are currently trading at $24.00 and ECE has 25 million shares outstanding, then ECE's market-to-book ratio 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's net profit margin is 8%, then ECE's return on equity (ROE)is:

What are the four financial statements that all public companies must produce?

Use the table for the question(s)below. Consider the following balance sheet: -Luther Corporation's share price is $39 and the company has 20 million shares outstanding. Its excess cash in 2012 is $23.4. If EBIT is 41.2 and tax rate is 35%, its Return on Invested Capital in 2009 is closest to:

Use the information for the question(s)below. In November 2012 Perrigo Co. (PRGO)had a share price of $39.20. They had 91.33 million shares outstanding, a market-to-book ratio of 3.76. In addition, PRGO had $845.01 million in outstanding debt, $163.82 million in net income, and cash of $257.09 million. -The firm's revenues and expenses over a period of time are reported on the firm's:

Accounts payable is a:

Use the tables for the question(s)below. Consider the following financial information: -Off-balance sheet transactions are required to be disclosed:

Use the table for the question(s)below. Consider the following balance sheet: -Luther Corporation's cash ratio for 2012 is closest to:

A 30 year mortgage loan is a:

Use the information for the question(s)below. In November 2012, Perrigo Co. (PRGO)had a share price of $39.20. They had 91.33 million shares outstanding, a market-to-book ratio of 3.76. In addition, PRGO had $845.01 million in outstanding debt, $163.82 million in net income, and cash of $257.09 million. -Perrigo's return on equity (ROE)is closest to:

Use the table for the question(s)below. Consider the following balance sheet: -Luther's current ratio for 2012 is closest to:

What is the role of an auditor in financial statement analysis?

If Moon Corporation has depreciation or amortization expense, which of the following is TRUE?

Use the table for the question(s)below. Consider the following income statement and other information: -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-assets (ROA)is closest to: