Exam 14: Financial Statement Analysis Online

Martin Company reported an extraordinary after-tax loss of $180,000,resulting from an earthquake.What must have been the before-tax loss if Martin's marginal income tax rate was 40%?

Narlock Company's times interest earned for Year 2 was closest to which of the following?

Marcell Company's inventory turnover for Year 2 was closest to which of the following?

Grave Company had $150,000 in sales on account last year.The beginning accounts receivable balance was $14,000,and the ending accounts receivable balance was $10,000.The company's average collection period (age of receivables)was closest to which of the following?

March Company's inventory turnover for Year 2 was closest to which of the following?

What is the expected dividend per common share?

Orange Company's accounts receivable turnover for Year 2 was closest to which of the following?

Marcial Company's acid-test (quick)ratio at the end of Year 2 was closest to which of the following?

Larosa Company's return on total assets for Year 2 was closest to which of the following?

Larned Company's price-earnings ratio on December 31,Year 2 was closest to which of the following?

Marcial Company's inventory turnover for Year 2 was closest to which of the following?

Marcell Company's acid-test (quick)ratio at the end of Year 2 was closest to which of the following?

Orantes Company's earnings per common share for Year 2 was closest to which of the following?

Shelzo Inc. ,a manufacturer of construction equipment is considering the purchase of one of its suppliers,Raritron Industries.The purchase has been given preliminary approval by Shelzo's board of directors,and several discussions have taken place between the management of both companies.Raritron has submitted financial data for the past several years.Shelzo's controller has analyzed Raritron's financial statements and prepared the following ratio analysis comparing Raritron's performance with the industry averages. Required: Using the information provided above for Raritron Industries: a) (1. )Identify the two ratios from the above list that would be of most interest to short-term creditors. (2. )Explain what these two ratios measure. (3. )What do these two ratios indicate about Shelzo Inc.? b) (1. )Identify the three ratios from the above list that would be of most interest to shareholders. (2. )Explain what these three ratios measure. (3. )What do these three ratios indicate about Shelzo Inc.? c) (1. )Identify the two ratios from the above list that would be of most interest to long-term creditors. (2. )Explain what these two ratios measure. (3. )What do these two ratios indicate about Shelzo Inc.?

What will be the effect of a sale of a piece of equipment at book value for cash?

Last year,Allen Company's average collection period for accounts receivable was 40 days;this year,it increased to 60 days.Which of the following would most likely account for this change?

Laroche Company's book value per share at the end of Year 2 was closest to which of the following?

What is the dividend yield ratio on common shares for the current year,rounded to the nearest tenth of a percent?

Narita Company's times interest earned for Year 2 was closest to which of the following?

Last year,Javer Company had a net income of $200,000,income tax expense of $74,000,and interest expense of $20,000.The company's times interest earned was closest to which of the following?