Exam 13: Analysis of Financial Statements

Question

A company's balance sheet and income statement accounts follow: At December31 2014 2013 2012 Assets Cash \ 30,872 \ 36,086 \ 37,974 Accounts receivable, net 89,476 63,151 50,632 Merchandise inventory 112,499 83,450 54,467 Prepaid expenses 9,942 9,473 4,219 Plant assets, net 291,143 268,126 244,108 Total assets \ 533,932 \ 460,286 \ 391,400 Liabilities and Equity Accounts payable \ 130,290 \ 76,233 \ 50,632 Long-term notes payable secured by mortgages on plant assets 98,372 103,748 107,769 Common stock, \ 10 par value 142,500 132,500 102,500 Retained earnings 182,770 147,805 130,499 Total liabilities and equity \ 533,932 \ 460,286 \ 391,400 $A company's balance sheet and income statement accounts follow: \begin{array}{lrrr} \text { At December31}&2014&2013&2012\\ \text { Assets}\\ \text { Cash } & \$ 30,872 & \$ 36,086 & \$ 37,974 \\ \text { Accounts receivable, net } & 89,476 & 63,151 & 50,632 \\ \text { Merchandise inventory } & 112,499 & 83,450 & 54,467 \\ \text { Prepaid expenses } & 9,942 & 9,473 & 4,219 \\ \text { Plant assets, net } & 291,143 & 268,126 & 244,108 \\ \text { Total assets } & \$ 533,932 & \$ 460,286 & \$ 391,400 \\ \text { Liabilities and Equity } \\ \text { Accounts payable } & \$ 130,290 & \$ 76,233 & \$ 50,632 \\ \text { Long-term notes payable secured by } \\ \text { mortgages on plant assets }& 98,372 & 103,748 & 107,769 \\ \text { Common stock, } \$ 10 \text { par value } & 142,500 & 132,500 & 102,500 \\ \text { Retained earnings } & 182,770 & 147,805 & 130,499\\ \text { Total liabilities and equity }& \$ 533,932 & \$ 460,286 & \$ 391,400 \end{array} What is the company's return on common stockholders' equity ratio for 2013?$ What is the company's return on common stockholders' equity ratio for 2013?

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

For internal users,one purpose of financial statement analysis is to provide information helpful in improving the company's efficiency and effectiveness in providing products and services.

Identify and explain the four building blocks of financial statement analysis.

Trend percentage is calculated by dividing _ by ___ and multiplying the result by 100.

Introducing Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Accounting for Merchandising Operations

Inventories and Cost of Sales

Cash and Internal Controls

Accounts and Notes Receivable

Long-Term Assets

Current Liabilities

Long-Term Liabilities

Corporate Reporting and Analysis

Reporting Cash Flows

Managerial Accounting Concepts and Principles

Job Order Costing and Analysis

Process Costing

Activity-Based Costing and Analysis

Cost-Volume-Profit Analysis

Variable Costing and Performance Reporting

Master Budgets and Performance Planning

Flexible Budgets and Standard Costs

Decentralization and Performance Measurement

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Accounting With Special Journals

Time Value of Money

Investments and International Operations

Accounting for Partnerships

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