Exam 13: Financial Statement Analysis

For the period from 2014 to 2015,a company reports the following: If sales are $1,000,000 in 2014,what are sales in 2015?

Horizontal analysis highlights changes in financial statement line items from year to year.

Marie's Clothing Store had an accounts receivable balance of $420,000 at the beginning of the year and a year-end balance of $510,000.Net credit sales for the year totaled $2,100,000.The average collection period of the receivables was:

Hull Company reports the following data: Based on the above data,what can be said about the Hull Company?

Walton Company's return on sales for the most recent year was 5%.The industry leader reports a return on sales of 7%.The comparison of Walton Company's return on sales to the industry leader is an example of:

Year to year percentage changes in line items from comparative financial statements is called:

Wilhelm Company's gross profit percentages for the past 3 years are: Based on the above data,what can be said about the Wilhelm Company?

On a statement of cash flows(indirect method),which item is reported as a line item under Cash From Operating Activities?

The leverage ratio measures:

Which of the following is typically used as the base in a vertical analysis of a balance sheet?

The ratio that measures a company's success in using its assets to earn income for the persons who finance the business is the:

On a common-size balance sheet,each line item is expressed as a percentage of:

A company's debt ratio is computed as total assets minus total liabilities divided by total assets.

A high inventory turnover may indicate that a company is experiencing difficulty selling its inventory.

Horizontal analysis is performed on information from:

In performing vertical analysis,the base for income before taxes is:

Goelzer Company reports the following trend percentages for net income: Given the above data,which statement is FALSE?

The percentage change in any individual item shown on comparative financial statements is calculated by dividing the dollar amount of the change from the base period to the current period by:

A financial statement that shows each line item as a percentage of one key item on the statement is referred to as:

In an efficient market,an investor's search for "underpriced" stock will be unsuccessful unless the investor has knowledge of confidential information.