Exam 4: Financial Statement Analysis and Forecasting

On the balance sheet,a company reports total assets of $8 million,common shares (book value)of $4 million,and retained earnings of $2 million.The debt-to-asset ratio is:

What does the retention ratio measure?

At the beginning of the year a company has $140 in inventory and at the end of the year the inventory on the balance sheet is $110.If the firm reports cost of goods sold on the income statement of $400,then the inventory turnover ratio would be closest to:

The following information was extracted from Webb Company's financial statements: The current ratio and quick ratio for Webb Company are:

To produce chewing gum,DryFruit Gum Company pays $100,000 per year for rent on a long-term lease and $25 per kilogram for sorbitol and other ingredients.The firm pays zero taxes.These are the only costs associated with making DryFruit Gum.During the year,the firm sells 30,000 kilograms of chewing gum at $45 per kilogram.The degree of total leverage for DryFruit is closest to:

Financial ratios are used to perform analysis of:

Which of the following is not true?

What is the major implication of the adoption of IFRS standards globally?

Voyage Company is in a very high growth industry while EZgoing Company is in a low growth industry.Comparing their dividend payout ratios we would expect:

Which of the following ratios are "stock ratios"?

On the balance sheet of last year,a company reports total assets of $8 million,common shares (book value)of $4 million,and retained earnings of $2 million.At the end of the current year,the net income was $ 1 million,and the whole amount was retained by the firm.Everything else (each of the aforementioned amounts other than retained earnings)was held constant.The debt-to-equity ratio at the end of the current year is:

What is the best description of an efficiency ratio?

What problem arises for comparing Exxon Mobil Corporation (United States)and BP PLC (United Kingdom)financial statements?

On the projected balance sheet for the next year,total assets are $5,000,total liabilities are $2000,and shareholder's equity is $1,000.Which of the following is correct?

In assessing a firm's liquidity,which of the following ratios would be most helpful?

.Which of the following ratios are "flow ratios"?

Discuss some difficulties when comparing the ratios of similar corporations from different countries.

Which of the following people would be least likely to calculate financial ratios for a company?

What is the risk of comparing financial ratios reported by different companies?

On the balance sheet,a company reports total assets of $8 million,common shares (book value)of $4 million,and retained earnings of $2 million.The debt-to-equity ratio is: