Exam 14: Financial Statement Analysis Online

Last year,Dunn Company purchased $1,920,000 of inventory.The cost of good sold was $1,800,000,and the ending inventory was $360,000.What was the inventory turnover?

Desktop Co.presently has a current ratio of 1.2 to 1 and an acid-test ratio of 0.8 to 1.What will be effect of prepaying next year's office rent of $50,000?

Perlman Company had 100,000 common shares and 20,000 preferred shares at the end of the year just completed.Preferred shareholders received total dividends of $140,000.Common shareholders received total dividends of $210,000.If the dividend payout ratio for the year was 70%,what was the net income for the year?

Which of the following events is unique to the calculation of fully diluted earnings per share?

Trend percentages state several years' financial data in terms of a base year.For example,sales for every year would be stated as a percentage of the sales in the base year.

When calculating the acid-test ratio,prepaid expenses are ignored.

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

Selected year-end data for the Brayer Company are presented below: The company has no prepaid expenses,and inventories remained unchanged during the year.Based on these data,the company's inventory turnover ratio for the year was closest to which of the following?

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

Lisa Inc.'s return on common shareholders' equity for Year 2 was closest to which of the following?

The acid-test ratio is a test of the quality of accounts receivable-in other words,whether they are likely to be collected.

The inventory turnover ratio is equal to the average inventory balance divided by the cost of goods sold.

Harwichport Company has a current ratio of 3.5 to 1 and an acid-test ratio of 2.8 to 1.Current assets equal $175,000,of which $5,000 consists of prepaid expenses.What must be Harwichport Company's inventory?

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

Frantic Company had $130,000 in sales on account last year.The beginning accounts receivable balance was $10,000,and the ending accounts receivable balance was $16,000.The company's accounts receivable turnover was closest to which of the following?

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

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

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

Earnings per common share will immediately increase as a result of which of the following?

Financial statements for Raridan Company appear below: Required: Calculate the following for Year 2: 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.