Exam 13: Analyzing and Interpreting Financial Statements

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The standards for comparisons in financial statement analysis include (1) _______________, (2) ________________, (3) _________________ and (4) _______________.

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A company has an inventory turnover ratio of 2.90,merchandise inventory for 2014 of $46,095,and cost of goods sold of $173,420.What is the average inventory?

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A company that has days' sales uncollected of 30 days and days' sales in inventory of 18 days implies that inventory will be converted to cash in about 12 days.

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The gross margin ratio,return on total assets and basic earnings per share are all _____________ ratios.

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Horizontal analysis:

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Extraordinary items:

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Dividing ending inventory by cost of goods sold and multiplying the result by 365 is equal to the:

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The greater the times interest earned ratio,the more risk a company is exposed to.

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Profitability is the company's ability to generate future revenues and meet long-term financial obligations.

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The current year-end balance sheet data for a company are shown below: The current year-end balance sheet data for a company are shown below:   Calculate this company's: (1) Working capital (2) Acid-test ratio Calculate this company's: (1) Working capital (2) Acid-test ratio

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The current ratio is calculated as current liabilities divided by current assets.

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Explain the form and content of a complete income statement.

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The comparative balance sheet for Golden Co.is shown below.Express these amounts in a comparative,common-size balance sheet. The comparative balance sheet for Golden Co.is shown below.Express these amounts in a comparative,common-size balance sheet.

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The ability to provide financial rewards sufficient to attract and retain financing is called:

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A financial statement analysis report helps to reduce uncertainty in business decisions through a rigorous and sound evaluation.

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Corona Company's balance sheet accounts follow: Corona Company's balance sheet accounts follow:   -What is Corona Company's days' sales uncollected ratio for 2014 assuming net sales and gross profit for the period were $1,236,783,and $927,587 respectively? -What is Corona Company's days' sales uncollected ratio for 2014 assuming net sales and gross profit for the period were $1,236,783,and $927,587 respectively?

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In horizontal analysis the percent change is computed by:

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Comparative financial statements are reports that show financial amounts placed side by side in columns on a single statement for analysis purposes.

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A company has long-term notes payable of $175,625,taxes of $9,500,ending merchandise inventory of $450,290,interest expense of $14,050,net sales of $720,000 a gross profit ratio of 35%,a times interest earned ratio of 4.23,and total assets of $1,300,417.What is the company's earnings before interest and taxes?

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Current assets minus current liabilities is equal to:

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