Exam 13: Measuring and Evaluating Financial Performance

Company X has net sales revenue of $1,250,000,cost of goods sold of $760,000,and all other expenses of $290,000.The beginning balance of shareholders' equity is $400,000 and the beginning balance of fixed assets is $361,000.The ending balance of shareholders' equity is $600,000 and the ending balance of fixed assets is $389,000.What is the fixed asset turnover ratio?

An increase in the inventory turnover rate is indicative of:

If an analyst wanted to examine a company's long-run ability to survive,which of the following would best be considered?

Net sales reverue \3 45,000 Cost of goods sold \2 05,000 Average accourts receivable \3 2,500 Average irventory \9 ,450 Average plart, property ard equipment \8 1,250 Average total assets \1 30,000 -According to the above table.Calculate the company's days to collect ratio for the current year?

The types of nonrecurring items that must be separately stated on an income statement include:

\begin{array}{llcc} \text { Net sales reverule } &\$900,000 \\ \text { Expenses } &\$500,000\\ \text { Interest } &\$10,000\\ \text { Income tax expense } &\$90,000\\ \text {Net cash from operations } &\$290,000\\ \text { Fixed Assets end of currert year } &\$600,000\\ \text { Liabilities end of current year } &\$100,000\\ \text { Stockholders { } ^ { ' } equity end of curent year } &\$500,000\\ \text { Fixed Assets end of previous year } &\$590,000\\ \text { Stockholders \({ } ^ { ' }\) equity end of previous year } &\$490,000\\ \text { Common stock outstanding} &40,000 \text {shares}\\ \text {Curent market price of stock } &\$15 \text { share}\\\end{array} -According to the above Table.Calculate the earnings per share for the current year.

A share sells for $20.The company has $64 million in earnings and 200 million outstanding shares.The P/E ratio for the company is:

Company X has net sales revenue of $780,000,cost of goods sold of $343,200,and all other expenses of $327,600.The net profit margin is:

Net sales reverue \3 45,000 Cost of goods sold \2 05,000 Average accourts receivable \3 2,500 Average irventory \9 ,450 Average plart, property ard equipment \8 1,250 Average total assets \1 30,000 -According to the above table.Calculate the company's accounts receivable turnover ratio for the current year?

A company's comparative balance sheets show total assets for 2018 and 2017 as $990,000 and $900,000,respectively.What is the percentage change to be reported in the horizontal analysis?

In the space provided below,list the factors,revealed by financial analysis,that contribute to going-concern problems,as discussed in the textbook 1. 2. 3. 4. 5. 6. 7.

Data from ratio analysis can be:

\begin{array}{llcc} \text { Net sales reverule } &\$900,000 \\ \text { Expenses } &\$500,000\\ \text { Interest } &\$10,000\\ \text { Income tax expense } &\$90,000\\ \text {Net cash from operations } &\$290,000\\ \text { Fixed Assets end of currert year } &\$600,000\\ \text { Liabilities end of current year } &\$100,000\\ \text { Stockholders { } ^ { ' } equity end of curent year } &\$500,000\\ \text { Fixed Assets end of previous year } &\$590,000\\ \text { Stockholders \({ } ^ { ' }\) equity end of previous year } &\$490,000\\ \text { Common stock outstanding} &40,000 \text {shares}\\ \text {Curent market price of stock } &\$15 \text { share}\\\end{array} -According to the above Table.Calculate the debt to equity ratio for the current year.

The analysis of a firm's profitability includes all of the following except,

Analysts typically use a running four-week average for the shares price in the P/E ratio.

The low current ratio is typical for industries where suppliers give a more favourable payment terms on its Accounts Payable.

It is usually better to compare the ratio data from one company with the average of the industry rather than to compare the data with specific competitors.