Exam 13: How Do Managers Use Financial and Nonfinancial Performance Measures

Pilot Company has the following information available for 2012 and 2013: If you were performing a trend analysis on this information,you would say that property,plant,and equipment has:

The following condensed income statement is for Boston Inc. Prepare a trend analysis of the income statements from 2012 to 2013.(Round percent computations to one decimal place. )

Exhibit 13-1 Xavier Company reported the following income statement and balance sheet amounts on December 31,2013. Inventory and prepaid expenses account for $50,000 of the 2013 current assets. Average inventory for 2013 is $36,000. Average net accounts receivable for 2013 is $62,000. Average one-day sales are $5,900. There are 12,000 shares of common stock outstanding at the end of 2013. The market price per share of common stock is $27 at the end of 2013. The EPS for 2013 is equal to $1.50 per share. -Refer to Exhibit 13-1.What is the current ratio for 2013 (rounded to two decimal places)?

The current ratio is the same as the quick ratio.

If Company A had earnings per share of $4 and Company B had earnings per share of $3,then it is accurate to conclude that Company A was more profitable.

On a common-size balance sheet,equipment should be stated as a percentage of:

Which of the following types of analyses would show whether sales increased by $160,000 from one year to the next?

The following condensed income statement is for Boston Inc. Prepare a common-size analysis of the income statements for 2012 and 2013.(Round percent computations to one decimal place. )

Exhibit 13-1 Xavier Company reported the following income statement and balance sheet amounts on December 31,2013. Inventory and prepaid expenses account for $50,000 of the 2013 current assets. Average inventory for 2013 is $36,000. Average net accounts receivable for 2013 is $62,000. Average one-day sales are $5,900. There are 12,000 shares of common stock outstanding at the end of 2013. The market price per share of common stock is $27 at the end of 2013. The EPS for 2013 is equal to $1.50 per share. -Refer to Exhibit 13-1.What is the return on assets for 2013 (rounded to the nearest tenth of a percent)?

Exhibit 13-1 Xavier Company reported the following income statement and balance sheet amounts on December 31,2013. Inventory and prepaid expenses account for $50,000 of the 2013 current assets. Average inventory for 2013 is $36,000. Average net accounts receivable for 2013 is $62,000. Average one-day sales are $5,900. There are 12,000 shares of common stock outstanding at the end of 2013. The market price per share of common stock is $27 at the end of 2013. The EPS for 2013 is equal to $1.50 per share. -Refer to Exhibit 13-1.What is the price-earnings ratio at the end of 2013 (rounded to two decimal places)?

All of the following measures evaluate profitability except:

The debt to assets ratio is calculated as total assets divided by total liabilities.

Exhibit 13-1 Xavier Company reported the following income statement and balance sheet amounts on December 31,2013. Inventory and prepaid expenses account for $50,000 of the 2013 current assets. Average inventory for 2013 is $36,000. Average net accounts receivable for 2013 is $62,000. Average one-day sales are $5,900. There are 12,000 shares of common stock outstanding at the end of 2013. The market price per share of common stock is $27 at the end of 2013. The EPS for 2013 is equal to $1.50 per share. -Refer to Exhibit 13-1.What is the debt to assets ratio for 2013 (rounded to two decimal places)?

Declan Inc.calculated its accounts receivable turnover for 2013 to be 20.0.Both years prior to 2013 showed accounts receivable turnovers to be 12.0.Based on this information,what is the best explanation for the change?

Companies with higher inventory turnover ratios tend to have lower inventory costs,including lower inventory storage and insurance costs,than companies with lower inventory turnover ratios.

All of the following ratios are used to evaluate short-term liquidity except:

On a common-size balance sheet,current liabilities should be stated as a percentage of:

A trend percentage is calculated as the current year divided by the base year.

In general,managers prefer expenses as a percent of net sales to increase over time.

Exhibit 13-1 Xavier Company reported the following income statement and balance sheet amounts on December 31,2013. Inventory and prepaid expenses account for $50,000 of the 2013 current assets. Average inventory for 2013 is $36,000. Average net accounts receivable for 2013 is $62,000. Average one-day sales are $5,900. There are 12,000 shares of common stock outstanding at the end of 2013. The market price per share of common stock is $27 at the end of 2013. The EPS for 2013 is equal to $1.50 per share. -Refer to Exhibit 13-1.What is the gross margin ratio for 2013 (rounded to the nearest tenth of a percent)?