A company is preparing a common-size balance sheet and wishes the base amount to be the total amount of assets.What are the 2013 and 2014 common-size percents for cash? \[\begin{array} { | l | r | r | } \hline &2 0 1 3 & { 2014 } \\ \hline \text { Cash } & \$ 21,904 & \$ 32,203 \\ \hline \text { Total curtent assets } & 101,769 & 141,128 \\ \hline \text { Propety and equipment } & 112,577 & 202,558 \\ \hline \text { Long-term investrments } & 12,700 & 4,344 \\ \hline \text { Intarigible assets } & 16,621 & 48,703 \\ \hline \text { Other long-term assets } & 11,709 & 13,754 \\ \hline \text { Total assets } & \$ 255,376 & \$ 410,487 \\ \hline \end{array}\]

A) 21.52% in 2013 and 22.82% in 2014. B) 7.90% in 2013 and 7.27% in 2014. C) 8.58% in 2013 and 7.85% in 2014. D) 19.30% in 2013 and 20.79 in 2014. E) The percent cannot be computed for 2013 and it is 47.01% in 2014. A) 21.52% in 2013 and 22.82% in 2014. B) 7.90% in 2013 and 7.27% in 2014. C) 8.58% in 2013 and 7.85% in 2014. D) 19.30% in 2013 and 20.79 in 2014. E) The percent cannot be computed for 2013 and it is 47.01% in 2014.

Selected balances from a company's financial statements are shown below: $\begin{array}{|l|r|r|r|} \hline&\text { Dec. 31, } & \text { Dec. 31, } & \text { For the } \\ &2013 & 2014 & \text { Year 2014 } \\ \hline \text { Merchandise inventory } & \$ 15,000 & \$ 20,000 \\ \hline \text { Accounts payable } & 32,000 & 26,000 \\ \hline \text { Salaries payable } & 4,400 & 3,000 \\ \hline \text { Accounts receivable } & 24,000 & 21,000 \\ \hline \text { Total assets } & 234,000 & 286,000 \\ \hline \text { Sales (all on credit) } & & & \$ 312,000 \\ \hline \text { Cost of goods sold } & & & 165,600 \\ \hline \text { Salaries expense } & & & 48,000 \\ \hline \text { Other expenses } & & & 75,000 \\ \hline \text { Net income } & & & 24,000\\ \hline \end{array}$ Use the information above to calculate the following current year ratios: (a)2014 inventory turnover. (b)Days' sales uncollected at Dec.31,2014. (c)2014 profit margin. (d)2011 return on total assets.

(a)Inventory turnover = $165,600/[($15,0

Exam 13: Analysis of Financial Statements

A company is preparing a common-size balance sheet and wishes the base amount to be the total amount of assets.What are the 2013 and 2014 common-size percents for cash? 2013 2014 Cash \ 21,904 \ 32,203 Total curtent assets 101,769 141,128 Propety and equipment 112,577 202,558 Long-term investrments 12,700 4,344 Intarigible assets 16,621 48,703 Other long-term assets 11,709 13,754 Total assets \ 255,376 \ 410,487

(Multiple Choice)

4.7/5

(29)

Question 141

Explain where the following item should appear in the financial statements of a corporation: One of the company's plants was destroyed by an earthquake.The area has never reported an earthquake.The amount of the loss,net of tax,was $850,000.

(Essay)

4.7/5

(30)

Question 142

One of several ratios that reflects solvency includes the:

(Multiple Choice)

4.9/5

(40)

Question 143

Financial statement analysis can be used for personal investment decisions.

(True/False)

4.9/5

(40)

Question 144

Information from a manufacturing company's current year income statement follows: Sales \ 800,000 Cost of goods sold 455,000 Gross profit \ 345,000 Operating expenses 65,000 Operating income \ 0,000 Interest expense 32,000 Income before taxes \ 8,000 Income taxes expense 12,400 Net income \ 35,600 Calculate the company's times interest earned.

(Short Answer)

4.9/5

(33)

Question 145

A company has total assets of $5,600,482,common stock of $2,111,111,retained earnings of $1,058,473.What is the company's equity ratio?

(Multiple Choice)

4.8/5

(38)

Question 146

Current assets divided by current liabilities is equal to the:

(Multiple Choice)

4.9/5

(44)

Question 147

A company had a market price of $8.22 per share,earnings per share of $1.01,and dividends per share of $0.32.Its price-earnings ratio is equal to:

(Multiple Choice)

5.0/5

(29)

Question 148

Selected balances from a company's financial statements are shown below: Dec. 31, Dec. 31, For the 2013 2014 Year 2014 Merchandise inventory \ 15,000 \ 20,000 Accounts payable 32,000 26,000 Salaries payable 4,400 3,000 Accounts receivable 24,000 21,000 Total assets 234,000 286,000 Sales (all on credit) \ 312,000 Cost of goods sold 165,600 Salaries expense 48,000 Other expenses 75,000 Net income 24,000 Use the information above to calculate the following current year ratios: (a)2014 inventory turnover. (b)Days' sales uncollected at Dec.31,2014. (c)2014 profit margin. (d)2011 return on total assets.

(Essay)

4.7/5

(34)

Question 149

Use the balance sheets of Sando shown below to calculate the following ratios for 2013 (round to the hundredths): (a)Current ratio (b)Acid-test ratio (c)Debt ratio (d)Equity ratio SANDO COMPANY Balance Sheets December 31,2013 Assets: Cash \ 43,000 Accounts receivable 38,000 Merchandise inventory 61,000 Prepaid insurance 6,000 Long-term investments 49,000 Plant assets (net) 218,000 Total assets \ 415,000 Liabilities and Equity: Current liabilities \ 62,000 Long-term liabilities 45,000 Common stock 150,000 Retained earnings 158,000 Total liabilities and equity \ 415,000

(Essay)

4.7/5

(34)

Question 150

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

(True/False)

4.7/5

(40)

Question 151

______________________________ applies analytical tools to general-purpose financial statements and related data for making business decisions.

(Short Answer)

4.9/5

(33)

Question 152

Working capital is computed as current liabilities minus current assets.

(True/False)

4.8/5

(34)

Question 153

The return on common stockholders' equity measures a company's success in reaching the goal of earning net income for its owners.

(True/False)

4.7/5

(38)

Question 154

What are the standards for financial analysis comparison? Give examples of each.

(Essay)

4.8/5

(44)

Question 155

Describe the purpose of vertical financial statement analysis and how it is applied.

(Essay)

4.7/5

(29)

Question 156

A high level of expected risk suggests a low price-earnings ratio.

(True/False)

4.9/5

(42)

Question 157

A company has a current ratio of 1.92,total liabilities of $193,849,long-term notes payable of $85,791,and a quick ratio of .96.What are total quick assets for the company?

(Short Answer)

4.8/5

(37)

Question 158

Dividing accounts receivable by net sales and multiplying the result by 365 is equal to the:

(Multiple Choice)

4.8/5

(34)

Question 159

A company had a market price of $83.12 per share,dividends per share of $5.40,and Earnings per share of $4.87.Its price-earnings ratio is equal to:

(Multiple Choice)

4.9/5

(44)

Question 160

Exam 13: Analysis of Financial Statements

Explain where the following item should appear in the financial statements of a corporation: One of the company's plants was destroyed by an earthquake.The area has never reported an earthquake.The amount of the loss,net of tax,was $850,000.

One of several ratios that reflects solvency includes the:

Financial statement analysis can be used for personal investment decisions.

A company has total assets of $5,600,482,common stock of $2,111,111,retained earnings of $1,058,473.What is the company's equity ratio?

Current assets divided by current liabilities is equal to the:

A company had a market price of $8.22 per share,earnings per share of $1.01,and dividends per share of $0.32.Its price-earnings ratio is equal to:

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

______________________________ applies analytical tools to general-purpose financial statements and related data for making business decisions.

Working capital is computed as current liabilities minus current assets.

The return on common stockholders' equity measures a company's success in reaching the goal of earning net income for its owners.

What are the standards for financial analysis comparison? Give examples of each.

Describe the purpose of vertical financial statement analysis and how it is applied.

A high level of expected risk suggests a low price-earnings ratio.

A company has a current ratio of 1.92,total liabilities of $193,849,long-term notes payable of $85,791,and a quick ratio of .96.What are total quick assets for the company?

Dividing accounts receivable by net sales and multiplying the result by 365 is equal to the:

A company had a market price of $83.12 per share,dividends per share of $5.40,and Earnings per share of $4.87.Its price-earnings ratio is equal to:

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