A) Are not reported on a corporate income statement. B) Are included in income from operations. C) Are unusual and infrequent. D) Include changes in accounting principle. E) Are disclosed before discontinued operations on the income statement. A) Are not reported on a corporate income statement. B) Are included in income from operations. C) Are unusual and infrequent. D) Include changes in accounting principle. E) Are disclosed before discontinued operations on the income statement.

Calculate the percent increase or decrease for each of the following financial statement items: \[\begin{array} { | l | r | r | } \hline & { 2014 } &2013 \\ \hline \text { Cash } & \$ 37,500 & \$ 30,000 \\ \hline \text { Accounts receivable } & 63,000 & 52,500 \\ \hline \text { Inventory } & 61,500 & 90,000 \\ \hline \text { Accounts payable } & 35,100 & 27,000 \\ \hline \text { Sales } & 187,500 & 150,000 \\ \hline \text { Equipment } & 165,000 & 125,000 \\ \hline \end{array}\]

\[\begin{array} { | l | c | r | } \hlin

Exam 13: Analysis of Financial Statements

General-purpose financial statements include the (1)_________,(2)_,(3)_,(4) and (5)_________.

(Short Answer)

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Question 81

The comparison of a company's financial condition and performance across time is known as:

(Multiple Choice)

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Question 82

Ratios analysis eliminates all of the differences of GAAP versus IFRS financial reporting.

(True/False)

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Question 83

Industry standards for financial statement analysis:

(Multiple Choice)

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Question 84

A company reports basic earnings per share of $3.50,cash dividends per share of $0.75,and a market price per share of $64.75.The company's dividend yield equal is equal to 21.4%.

(True/False)

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Question 85

A company reported net income of $78,000 and had 15,000 common shares outstanding throughout the current year.At year-end,the price per share of the company's stock was $49.40.What is the company's year-end price-earnings ratio?

(Essay)

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Question 86

Extraordinary items:

(Multiple Choice)

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Question 87

Profitability is the ability to generate positive market expectations.

(True/False)

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Question 88

Horizontal analysis is used to reveal changes in the relative importance of each financial statement item.

(True/False)

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Question 89

Net income divided by net sales is equal to the:

(Multiple Choice)

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Question 90

Express the following balance sheets for Alberts Company in common-size percents. ALBERTS COMPANY Balance Sheet December 31,2013 and 2014 2013 2014 Assets Cash \ 22,000 \ 43,000 Accounts receivable 42,000 38,000 Merchandise inventory 52,000 61,000 Prepaid insurance 9,000 6,000 Long-term investments 20,000 49,000 Plant assets (net) 218,000 218,000 Total assets \ 363,000 \ 415,000 Liabilities and Equity Current liabilities \ 75,000 \ 62,000 Long-term liabilities 36,000 45,000 Common stock 150,000 150,000 Retained earnings 102,000 158,000 Total liabilities and equity \ 363,000 \ 415,000

(Essay)

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Question 91

The average number of times a company's inventory is sold during an accounting period,calculated by dividing cost of goods sold by the average inventory balance,is equal to the:

(Multiple Choice)

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Question 92

Calculate the percent increase or decrease for each of the following financial statement items: 2014 2013 Cash \ 37,500 \ 30,000 Accounts receivable 63,000 52,500 Inventory 61,500 90,000 Accounts payable 35,100 27,000 Sales 187,500 150,000 Equipment 165,000 125,000

(Essay)

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Question 93

Standards for comparison are necessary when making judgments about a company's financial performance.

(True/False)

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Question 94

Financial statement analysis is the application of analytical tools to general-purpose financial statements and related data for making business decisions.

(True/False)

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Question 95

Annual cash dividends per share divided by market price per share is equal to the:

(Multiple Choice)

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Question 96

Ratios can be expressed as a percent,rate,or proportion.

(True/False)

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Question 97

A company had a profit margin of 8%.If net income equaled $40,000 and average total assets equaled $332,500,how much were net sales?

(Multiple Choice)

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Question 98

Expropriation of property by a foreign government is considered an extraordinary item.

(True/False)

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Question 99

The dollar change for a financial statement item is calculated by:

(Multiple Choice)

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Question 100

Exam 13: Analysis of Financial Statements

General-purpose financial statements include the (1)___________________,(2)___________________,(3)_____________________________,(4)________________________ and (5)_____________________________.

The comparison of a company's financial condition and performance across time is known as:

Ratios analysis eliminates all of the differences of GAAP versus IFRS financial reporting.

Industry standards for financial statement analysis:

A company reports basic earnings per share of $3.50,cash dividends per share of $0.75,and a market price per share of $64.75.The company's dividend yield equal is equal to 21.4%.

A company reported net income of $78,000 and had 15,000 common shares outstanding throughout the current year.At year-end,the price per share of the company's stock was $49.40.What is the company's year-end price-earnings ratio?

Extraordinary items:

Profitability is the ability to generate positive market expectations.

Horizontal analysis is used to reveal changes in the relative importance of each financial statement item.

Net income divided by net sales is equal to the:

The average number of times a company's inventory is sold during an accounting period,calculated by dividing cost of goods sold by the average inventory balance,is equal to the:

Calculate the percent increase or decrease for each of the following financial statement items: 2014 2013 Cash \ 37,500 \ 30,000 Accounts receivable 63,000 52,500 Inventory 61,500 90,000 Accounts payable 35,100 27,000 Sales 187,500 150,000 Equipment 165,000 125,000

Standards for comparison are necessary when making judgments about a company's financial performance.

Financial statement analysis is the application of analytical tools to general-purpose financial statements and related data for making business decisions.

Annual cash dividends per share divided by market price per share is equal to the:

Ratios can be expressed as a percent,rate,or proportion.

A company had a profit margin of 8%.If net income equaled $40,000 and average total assets equaled $332,500,how much were net sales?

Expropriation of property by a foreign government is considered an extraordinary item.

The dollar change for a financial statement item is calculated by:

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

Filters

General-purpose financial statements include the (1)_________,(2)_,(3)_,(4) and (5)_________.