Question 1

What is the book value per share for the current year,rounded to the nearest cent?

Accepted Answer

A)  $15.14. 
B)  $18.31. 
C)  $20.14. 
D)  $22.18. 
A)  $15.14. 
B)  $18.31. 
C)  $20.14. 
D)  $22.18.

Question 2

Granger Company had $180,000 in sales on account last year.The beginning accounts receivable balance was $10,000,and the ending accounts receivable balance was $18,000.The company's average collection period (age of receivables)was closest to which of the following? Do not round intermediate calculations.

Accepted Answer

A)  20.28 days. 
B)  28.39 days. 
C)  36.50 days. 
D)  56.78 days.Days = 365/12.857 = 28.39 days. 
A)  20.28 days. 
B)  28.39 days. 
C)  36.50 days. 
D)  56.78 days.Days = 365/12.857 = 28.39 days.

Question 3

Orantes Company's current ratio at the end of Year 2 was closest to which of the following?

Accepted Answer

A)  0.35 to 1. 
B)  0.54 to 1. 
C)  1.19 to 1. 
D)  1.50 to 1. 
A)  0.35 to 1. 
B)  0.54 to 1. 
C)  1.19 to 1. 
D)  1.50 to 1.

Question 4

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

Accepted Answer

A)  1.6%. 
B)  4.1%. 
C)  4.3%. 
D)  4.6%. 
A)  1.6%. 
B)  4.1%. 
C)  4.3%. 
D)  4.6%.

Question 5

Lisa Inc.'s book value per common share at December 31,Year 2,was closest to which of the following?

Accepted Answer

A)  $10.00. 
B)  $11.25. 
C)  $18.33. 
D)  $19.33. 
A)  $10.00. 
B)  $11.25. 
C)  $18.33. 
D)  $19.33.

Question 6

If Dawson Corporation's common shares have a price-earnings ratio of eight,what would be the market price per share,rounded to the nearest dollar?

Accepted Answer

A)  $56. 
B)  $68. 
C)  $72. 
D)  $125. 
A)  $56. 
B)  $68. 
C)  $72. 
D)  $125.

Question 7

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

Accepted Answer

A)  10.0 times. 
B)  14.3 times. 
C)  15.3 times. 
D)  25.3 times. 
A)  10.0 times. 
B)  14.3 times. 
C)  15.3 times. 
D)  25.3 times.

Question 8

Which of the following is true regarding the calculation of return on total assets?

Accepted Answer

A)  The numerator of the ratio consists only of net income. 
B)  The denominator of the ratio consists of the balance of total assets at the end of the period under consideration. 
C)  The numerator of the ratio consists of net income plus interest expense multiplied by the tax rate. 
D)  The numerator of the ratio consists of net income plus interest expense multiplied by one minus the tax rate. 
A)  The numerator of the ratio consists only of net income. 
B)  The denominator of the ratio consists of the balance of total assets at the end of the period under consideration. 
C)  The numerator of the ratio consists of net income plus interest expense multiplied by the tax rate. 
D)  The numerator of the ratio consists of net income plus interest expense multiplied by one minus the tax rate.

Question 9

Larned Company's return on common shareholders' equity for Year 2 was closest to which of the following?

Accepted Answer

A)  26.9%. 
B)  27.9%. 
C)  29.8%. 
D)  30.9%. 
A)  26.9%. 
B)  27.9%. 
C)  29.8%. 
D)  30.9%.

Question 10

Comparative financial statements for Springville Company for the last two years appear below.The market price of Springville's common shares was $25 per share on December 31,Year 2.During Year 2,dividends of $2,000,000 were paid to preferred shareholders and $10,000,000 to common shareholders.

Required:
Calculate the following for Year 2:
a)Dividend payout ratio.
b)Dividend yield ratio.
c)Price-earnings ratio.
d)Accounts receivable turnover.
e)Inventory turnover.
f)Return on total assets.
g)Return on common shareholders' equity.
h)Was financial leverage positive or negative for the year? Explain.

Accepted Answer

a)Dividend payout ratio = Dividends per

Question 11

Narlock Company's debt-to-equity ratio at the end of Year 2 was closest to which of the following?

Accepted Answer

A)  0.32 to 1. 
B)  0.38 to 1. 
C)  0.70 to 1. 
D)  1.09 to 1. 
A)  0.32 to 1. 
B)  0.38 to 1. 
C)  0.70 to 1. 
D)  1.09 to 1.

Question 12

The times interest earned ratio of McHugh Company was 4.5 times.The interest expense for the year was $20,000,and the company's tax rate was 40%.What was the company's net income?

Accepted Answer

A)  $22,000. 
B)  $42,000. 
C)  $54,000. 
D)  $66,000. 
A)  $22,000. 
B)  $42,000. 
C)  $54,000. 
D)  $66,000.

Question 13

Which one of the following would increase the working capital of a company?

Accepted Answer

A)  Cash payment of payroll taxes payable. 
B)  Refinancing a short-term note payable with a two-year note payable. 
C)  Cash collection of accounts receivable. 
D)  Payment of a 20-year mortgage payable with cash. 
A)  Cash payment of payroll taxes payable. 
B)  Refinancing a short-term note payable with a two-year note payable. 
C)  Cash collection of accounts receivable. 
D)  Payment of a 20-year mortgage payable with cash.

Question 14

Krakov Company has total assets of $170,000 and total liabilities of $80,000.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)  0.89 to 1. 
A)  0.32 to 1. 
B)  0.47 to 1. 
C)  0.53 to 1. 
D)  0.89 to 1.

Question 15

Oratz Company's average sale period (turnover in days)for Year 2 was closest to which of the following?

Accepted Answer

A)  29.1 days. 
B)  40.3 days. 
C)  41.6 days. 
D)  57.6 days.Days = 365/6.3333 = 57.6 days. 
A)  29.1 days. 
B)  40.3 days. 
C)  41.6 days. 
D)  57.6 days.Days = 365/6.3333 = 57.6 days.

Question 16

If a loss resulting from an earthquake is classified as extraordinary,which of the following disclosures meets the minimum requirements in Canada?

Accepted Answer

A)  Two earnings per share figures,one before and the other after the net of tax effect of the extraordinary loss. 
B)  One earnings per share figure that ignores the extraordinary loss. 
C)  One earnings per share figure,net of the before-tax effect of the extraordinary loss. 
D)  One earnings per share figure,net of the after-tax effect of the extraordinary loss. 
A)  Two earnings per share figures,one before and the other after the net of tax effect of the extraordinary loss. 
B)  One earnings per share figure that ignores the extraordinary loss. 
C)  One earnings per share figure,net of the before-tax effect of the extraordinary loss. 
D)  One earnings per share figure,net of the after-tax effect of the extraordinary loss.

Question 17

Last year,Jackson Company had a net income of $160,000,income tax expense of $66,000,and interest expense of $20,000.The company's times interest earned was closest to which of the following?

Accepted Answer

A)  3.70 times. 
B)  8.00 times. 
C)  9.00 times. 
D)  12.30 times. 
A)  3.70 times. 
B)  8.00 times. 
C)  9.00 times. 
D)  12.30 times.

Question 18

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

Accepted Answer

A)  8%. 
B)  10%. 
C)  40%. 
D)  70%. 
A)  8%. 
B)  10%. 
C)  40%. 
D)  70%.

Question 19

Erambo Company has $11,000 in cash,$6,000 in marketable securities,$27,000 in current receivables,$8,000 in inventories,and $51,000 in current liabilities.The company's acid-test (quick)ratio is closest to which of the following?

Accepted Answer

A)  0.53 to 1. 
B)  0.75 to 1. 
C)  0.86 to 1. 
D)  1.02 to 1. 
A)  0.53 to 1. 
B)  0.75 to 1. 
C)  0.86 to 1. 
D)  1.02 to 1.

Question 20

Between Year 1 and Year 2,what happened to the times interest earned?

Accepted Answer

A)  It increased. 
B)  It decreased. 
C)  It remained the same. 
D)  The effect cannot be determined from the data provideD.
yr.1 = (1,200 - 720 - 400)/30 = 2.67 Yr.2 = (1,500 - 900 - 450)/75 = 2.00 
A)  It increased. 
B)  It decreased. 
C)  It remained the same. 
D)  The effect cannot be determined from the data provideD.
yr.1 = (1,200 - 720 - 400)/30 = 2.67 Yr.2 = (1,500 - 900 - 450)/75 = 2.00

What is the book value per share for the current year,rounded to the nearest cent?

Orantes Company's current ratio at the end of Year 2 was closest to which of the following?

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

Lisa Inc.'s book value per common share at December 31,Year 2,was closest to which of the following?

If Dawson Corporation's common shares have a price-earnings ratio of eight,what would be the market price per share,rounded to the nearest dollar?

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

Which of the following is true regarding the calculation of return on total assets?

Larned Company's return on common shareholders' equity for Year 2 was closest to which of the following?

Narlock Company's debt-to-equity ratio at the end of Year 2 was closest to which of the following?

The times interest earned ratio of McHugh Company was 4.5 times.The interest expense for the year was $20,000,and the company's tax rate was 40%.What was the company's net income?

Which one of the following would increase the working capital of a company?

Krakov Company has total assets of $170,000 and total liabilities of $80,000.The company's debt-to-equity ratio is closest to which of the following?

Oratz Company's average sale period (turnover in days)for Year 2 was closest to which of the following?

If a loss resulting from an earthquake is classified as extraordinary,which of the following disclosures meets the minimum requirements in Canada?

Last year,Jackson Company had a net income of $160,000,income tax expense of $66,000,and interest expense of $20,000.The company's times interest earned was closest to which of the following?

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

Erambo Company has $11,000 in cash,$6,000 in marketable securities,$27,000 in current receivables,$8,000 in inventories,and $51,000 in current liabilities.The company's acid-test (quick)ratio is closest to which of the following?

Between Year 1 and Year 2,what happened to the times interest earned?

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

What is the book value per share for the current year,rounded to the nearest cent?

Orantes Company's current ratio at the end of Year 2 was closest to which of the following?

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

Lisa Inc.'s book value per common share at December 31,Year 2,was closest to which of the following?

If Dawson Corporation's common shares have a price-earnings ratio of eight,what would be the market price per share,rounded to the nearest dollar?

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

Which of the following is true regarding the calculation of return on total assets?

Larned Company's return on common shareholders' equity for Year 2 was closest to which of the following?

Narlock Company's debt-to-equity ratio at the end of Year 2 was closest to which of the following?

The times interest earned ratio of McHugh Company was 4.5 times.The interest expense for the year was $20,000,and the company's tax rate was 40%.What was the company's net income?

Which one of the following would increase the working capital of a company?

Krakov Company has total assets of $170,000 and total liabilities of $80,000.The company's debt-to-equity ratio is closest to which of the following?

Oratz Company's average sale period (turnover in days)for Year 2 was closest to which of the following?

If a loss resulting from an earthquake is classified as extraordinary,which of the following disclosures meets the minimum requirements in Canada?

Last year,Jackson Company had a net income of $160,000,income tax expense of $66,000,and interest expense of $20,000.The company's times interest earned was closest to which of the following?

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

Erambo Company has $11,000 in cash,$6,000 in marketable securities,$27,000 in current receivables,$8,000 in inventories,and $51,000 in current liabilities.The company's acid-test (quick)ratio is closest to which of the following?

Between Year 1 and Year 2,what happened to the times interest earned?

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