Question 1

Lisa Inc.'s inventory turnover for Year 2 was closest to which of the following?

Accepted Answer

A)  3.7 times. 
B)  4.0 times. 
C)  4.4 times. 
D)  5.0 times. 
A)  3.7 times. 
B)  4.0 times. 
C)  4.4 times. 
D)  5.0 times.

Question 2

In determining whether a company's financial condition is improving or deteriorating over time,vertical analysis of financial statement data would be more useful than horizontal analysis.

Accepted Answer

A) True 
 B)False

Question 3

Brawer Company's net income last year was $55,000,and its interest expense was $20,000.Total assets at the beginning of the year were $660,000,and total assets at the end of the year were $620,000.The company's income tax rate was 30%.The company's return on total assets for the year was closest to which of the following?

Accepted Answer

A)  8.6%. 
B)  9.5%. 
C)  10.8%. 
D)  11.7%. 
A)  8.6%. 
B)  9.5%. 
C)  10.8%. 
D)  11.7%.

Question 4

The following account balances have been provided for the end of the most recent year:  
What is the book value per common share?

Accepted Answer

A)  $20. 
B)  $22. 
C)  $25. 
D)  $28. 
A)  $20. 
B)  $22. 
C)  $25. 
D)  $28.

Question 5

Information concerning the common shares of Morris Company as of the end of the company's fiscal year is presented below:  
The dividend yield ratio is closest to which of the following?

Accepted Answer

A)  11.1%. 
B)  33.3%. 
C)  50.0%. 
D)  120.0%. 
A)  11.1%. 
B)  33.3%. 
C)  50.0%. 
D)  120.0%.

Question 6

Cameron Company had 50,000 common shares issued and outstanding during the year just ended.The following information pertains to these shares:  
The total dividend on common shares for the year was $400,000.What was Cameron Company's dividend yield ratio for the year?

Accepted Answer

A)  8.89%. 
B)  9.41%. 
C)  11.43%. 
D)  20.00%. 
A)  8.89%. 
B)  9.41%. 
C)  11.43%. 
D)  20.00%.

Question 7

Irally Company,a retailer,had cost of goods sold of $150,000 last year.The beginning inventory balance was $26,000,and the ending inventory balance was $24,000.The company's average sale period (turnover in days)was closest to which of the following?

Accepted Answer

A)  58.40 days. 
B)  60.83 days. 
C)  63.27 days. 
D)  121.67 days. 
A)  58.40 days. 
B)  60.83 days. 
C)  63.27 days. 
D)  121.67 days.

Question 8

For Year 2,what was the net income before taxes as a percentage of sales?

Accepted Answer

A)  3%. 
B)  5%. 
C)  8%. 
D)  10%. 
A)  3%. 
B)  5%. 
C)  8%. 
D)  10%.

Question 9

Financial statements for AAR Company appear below:

AAR Company paid dividends of $3.15 per share during the year.The market price of the company's common shares at December 31 was $63 per share.Total assets at the beginning of the year were $1,100,000,and total shareholders' equity was $725,000.The balance of accounts receivable at the beginning of the year was $150,000.The balance in inventory at the beginning of the year was $250,000.
Required:
Calculate the following:
a)Current ratio.
b)Acid-test (quick)ratio.
c)Average collection period (age of receivables).
d)Inventory turnover.
e)Times interest earned.
f)Debt-to-equity ratio.
g)Dividend payout ratio.
h)Price-earnings ratio.
i)Return on total assets.
j)Return on common shareholders' equity.
k)Was financial leverage positive or negative for the year? Explain.

Accepted Answer

a)Current ratio = Current assets/Current

Question 10

Oratz Company's dividend yield ratio on December 31,Year 2 was closest to which of the following?

Accepted Answer

A)  0.5%. 
B)  5.2%. 
C)  5.5%. 
D)  5.7%. 
A)  0.5%. 
B)  5.2%. 
C)  5.5%. 
D)  5.7%.

Question 11

McGraw Electronics showed Bonds Payable of $7,500,000 in 2011 and $8,000,000 in 2010 on its comparative Balance Sheet.The percentage change is closest to:

Accepted Answer

A)  6.6%. 
B)  (6.6)%. 
C)  6.3%. 
D)  (6.3)%. 
A)  6.6%. 
B)  (6.6)%. 
C)  6.3%. 
D)  (6.3)%.

Question 12

Oratz Company's return on total assets for Year 2 was closest to which of the following? Do not round intermediate calculations.

Accepted Answer

A)  8.9%. 
B)  10.0%. 
C)  10.5%. 
D)  11.1%. 
A)  8.9%. 
B)  10.0%. 
C)  10.5%. 
D)  11.1%.

Question 13

The net accounts receivable for Andante Company were $150,000 at the beginning of the most recent year and $190,000 at the end of the year.If the accounts receivable turnover for the year was 8.5,and 15% of total sales were cash sales,what were the total sales for the year?

Accepted Answer

A)  $1,445,000. 
B)  $1,500,000. 
C)  $1,700,000. 
D)  $1,900,000.Sales = 1,445,000/(1 - .15)= $1,700,000. 
A)  $1,445,000. 
B)  $1,500,000. 
C)  $1,700,000. 
D)  $1,900,000.Sales = 1,445,000/(1 - .15)= $1,700,000.

Question 14

The gross margin percentage is most likely to be used to assess which of the following?

Accepted Answer

A)  How quickly accounts receivables can be collected. 
B)  How quickly inventories are sold. 
C)  The efficiency of administrative departments. 
D)  The overall profitability of the company's products. 
A)  How quickly accounts receivables can be collected. 
B)  How quickly inventories are sold. 
C)  The efficiency of administrative departments. 
D)  The overall profitability of the company's products.

Question 15

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

Accepted Answer

A)  $3.71. 
B)  $10.67. 
C)  $11.08. 
D)  $15.83. 
A)  $3.71. 
B)  $10.67. 
C)  $11.08. 
D)  $15.83.

Question 16

Eastham Company's accounts receivable were $600,000 at the beginning of the year and $800,000 at the end of the year.Cash sales for the year were $300,000.The accounts receivable turnover for the year was 5 times.What were Eastham Company's total sales for the year?

Accepted Answer

A)  $800,000. 
B)  $1,300,000. 
C)  $3,300,000. 
D)  $3,800,000. 
A)  $800,000. 
B)  $1,300,000. 
C)  $3,300,000. 
D)  $3,800,000.

Question 17

Irawaddy Company,a retailer,had cost of goods sold of $230,000 last year.The beginning inventory balance was $24,000,and the ending inventory balance was $22,000.The company's average sale period (turnover in days)was closest to which of the following?

Accepted Answer

A)  34.91 days. 
B)  36.50 days. 
C)  38.09 days. 
D)  73.00 days. 
A)  34.91 days. 
B)  36.50 days. 
C)  38.09 days. 
D)  73.00 days.

Question 18

The following data have been taken from your company's financial records for the current year:  
What is the price-earnings ratio?

Accepted Answer

A)  1.67 to 1. 
B)  7.00 to 1. 
C)  9.00 to 1. 
D)  15.00 to 1. 
A)  1.67 to 1. 
B)  7.00 to 1. 
C)  9.00 to 1. 
D)  15.00 to 1.

Question 19

Karma Company has total assets of $190,000 and total liabilities of $90,000.The company's debt-to-equity ratio is closest to which of the following?

Accepted Answer

A)  0.32 to 1. 
B)  0.47 to 1. 
C)  0.53 to 1. 
D)  0.90 to 1. 
A)  0.32 to 1. 
B)  0.47 to 1. 
C)  0.53 to 1. 
D)  0.90 to 1.

Question 20

Lisa Inc.'s accounts receivable turnover for Year 2 was closest to which of the following?

Accepted Answer

A)  4.9 times. 
B)  5.9 times. 
C)  6.7 times. 
D)  8.0 times. 
A)  4.9 times. 
B)  5.9 times. 
C)  6.7 times. 
D)  8.0 times.

Lisa Inc.'s inventory turnover for Year 2 was closest to which of the following?

In determining whether a company's financial condition is improving or deteriorating over time,vertical analysis of financial statement data would be more useful than horizontal analysis.

The following account balances have been provided for the end of the most recent year: What is the book value per common share?

Information concerning the common shares of Morris Company as of the end of the company's fiscal year is presented below: The dividend yield ratio is closest to which of the following?

Cameron Company had 50,000 common shares issued and outstanding during the year just ended.The following information pertains to these shares: The total dividend on common shares for the year was $400,000.What was Cameron Company's dividend yield ratio for the year?

Irally Company,a retailer,had cost of goods sold of $150,000 last year.The beginning inventory balance was $26,000,and the ending inventory balance was $24,000.The company's average sale period (turnover in days)was closest to which of the following?

For Year 2,what was the net income before taxes as a percentage of sales?

Oratz Company's dividend yield ratio on December 31,Year 2 was closest to which of the following?

McGraw Electronics showed Bonds Payable of $7,500,000 in 2011 and $8,000,000 in 2010 on its comparative Balance Sheet.The percentage change is closest to:

Oratz Company's return on total assets for Year 2 was closest to which of the following? Do not round intermediate calculations.

The net accounts receivable for Andante Company were $150,000 at the beginning of the most recent year and $190,000 at the end of the year.If the accounts receivable turnover for the year was 8.5,and 15% of total sales were cash sales,what were the total sales for the year?

The gross margin percentage is most likely to be used to assess which of the following?

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

Eastham Company's accounts receivable were $600,000 at the beginning of the year and $800,000 at the end of the year.Cash sales for the year were $300,000.The accounts receivable turnover for the year was 5 times.What were Eastham Company's total sales for the year?

Irawaddy Company,a retailer,had cost of goods sold of $230,000 last year.The beginning inventory balance was $24,000,and the ending inventory balance was $22,000.The company's average sale period (turnover in days)was closest to which of the following?

The following data have been taken from your company's financial records for the current year: What is the price-earnings ratio?

Karma Company has total assets of $190,000 and total liabilities of $90,000.The company's debt-to-equity ratio is closest to which of the following?

Lisa Inc.'s accounts receivable turnover for Year 2 was closest to which of the following?

Managerial Accounting and the Business Environment

Cost Terms, Concepts, and Classifications

Cost Behaviour: Analysis and Use

Cost-Volume-Profit Relationships

Systems Design: Job-Order Costing

Systems Design: Process Costing

Activity-Based Costing: a Tool to Aid Decision Making

Variable Costing: a Tool for Management

Budgeting

Standard Costs and Overhead Analysis

Reporting for Control

Relevant Costs for Decision Making

Capital Budgeting Decisions

Filters

Exam 14: Financial Statement Analysis Online

Lisa Inc.'s inventory turnover for Year 2 was closest to which of the following?

In determining whether a company's financial condition is improving or deteriorating over time,vertical analysis of financial statement data would be more useful than horizontal analysis.

The following account balances have been provided for the end of the most recent year: What is the book value per common share?

Information concerning the common shares of Morris Company as of the end of the company's fiscal year is presented below: The dividend yield ratio is closest to which of the following?

Cameron Company had 50,000 common shares issued and outstanding during the year just ended.The following information pertains to these shares: The total dividend on common shares for the year was $400,000.What was Cameron Company's dividend yield ratio for the year?

Irally Company,a retailer,had cost of goods sold of $150,000 last year.The beginning inventory balance was $26,000,and the ending inventory balance was $24,000.The company's average sale period (turnover in days)was closest to which of the following?

For Year 2,what was the net income before taxes as a percentage of sales?

Oratz Company's dividend yield ratio on December 31,Year 2 was closest to which of the following?

McGraw Electronics showed Bonds Payable of $7,500,000 in 2011 and $8,000,000 in 2010 on its comparative Balance Sheet.The percentage change is closest to:

Oratz Company's return on total assets for Year 2 was closest to which of the following? Do not round intermediate calculations.

The net accounts receivable for Andante Company were $150,000 at the beginning of the most recent year and $190,000 at the end of the year.If the accounts receivable turnover for the year was 8.5,and 15% of total sales were cash sales,what were the total sales for the year?

The gross margin percentage is most likely to be used to assess which of the following?

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

Eastham Company's accounts receivable were $600,000 at the beginning of the year and $800,000 at the end of the year.Cash sales for the year were $300,000.The accounts receivable turnover for the year was 5 times.What were Eastham Company's total sales for the year?

Irawaddy Company,a retailer,had cost of goods sold of $230,000 last year.The beginning inventory balance was $24,000,and the ending inventory balance was $22,000.The company's average sale period (turnover in days)was closest to which of the following?

The following data have been taken from your company's financial records for the current year: What is the price-earnings ratio?

Karma Company has total assets of $190,000 and total liabilities of $90,000.The company's debt-to-equity ratio is closest to which of the following?

Lisa Inc.'s accounts receivable turnover for Year 2 was closest to which of the following?

Managerial Accounting and the Business Environment

Cost Terms, Concepts, and Classifications

Cost Behaviour: Analysis and Use

Cost-Volume-Profit Relationships

Systems Design: Job-Order Costing

Systems Design: Process Costing

Activity-Based Costing: a Tool to Aid Decision Making

Variable Costing: a Tool for Management

Budgeting

Standard Costs and Overhead Analysis

Reporting for Control

Relevant Costs for Decision Making

Capital Budgeting Decisions

Filters