Exam 16: Financial Performance Measurement

From the following information, compute the ratios indicated and place the proper numbers in the spaces provided. Assume the average for the year is the same as the ending balances for the balance sheet accounts. Round answers to one decimal place, and show your work. Westwood had 4,000 shares of common stock issued and outstanding. The market price of common stock at year end was $15.00 per share. Dividends paid in 2010 were $0.60 per share.

(Essay)

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Question 21

Following are the financial statements for Starman Corporation for the year ended December 31, 2009. Assume that all balance sheet amounts represent both average and ending figures. $Following are the financial statements for Starman Corporation for the year ended December 31, 2009. Assume that all balance sheet amounts represent both average and ending figures. Starman Corporation Income Statement Far the Year Ended December 31, 2009 \begin{array}{lr} \text { Net sales } & \$ 400,000 \\ \text { Cost of goods sold } & 240,000 \\ \text { Gross margin } & \$ 160,000 \\ \text { Operating expenses } & 40,000 \\ \text { Income before income taxes } & \$ 120,000 \\ \text { Income taxes expense } & 30,000 \\ \text { Net income } & \$ 90,000 \\ \hline \end{array} What is the current ratio for this corporation? Round your answer to two decimal places.$ Starman Corporation Income Statement Far the Year Ended December 31, 2009 Net sales \ 400,000 Cost of goods sold 240,000 Gross margin \ 160,000 Operating expenses 40,000 Income before income taxes \ 120,000 Income taxes expense 30,000 Net income \ 90,000 What is the current ratio for this corporation? Round your answer to two decimal places.

(Multiple Choice)

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Question 22

Executive officers' compensation is typically comprised of all of the following except

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Question 23

Vertical analysis is the same as common-size analysis.

(True/False)

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Question 24

Use the following information to calculate the ratios requested below. Round answers to two decimal places. Show your work.

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Question 25

Which of the following situations severely limits the use of industry norms as standards of comparison?

(Multiple Choice)

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Question 26

Which of the following must be reported by diversified companies for each of their operating segments?

(Multiple Choice)

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Question 27

It is in the best interests of a company to base executive compensation on a single performance measure.

(True/False)

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Question 28

Investors, creditors, and customers are considered external users of financial statements.

(True/False)

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Question 29

The number of days' sales uncollected is determined by dividing

(Multiple Choice)

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Question 30

The analysis of risk and return is important to both investors and creditors.

(True/False)

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Question 31

It is possible for horizontal analysis to indicate a decrease in revenues from one year to another and an increase in net income.

(True/False)

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Question 32

The calculation of free cash flow contains a deduction for

(Multiple Choice)

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Question 33

In trend analysis, each item is expressed as a percentage of the

(Multiple Choice)

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Question 34

How would the collection of an account receivable affect the current ratio and the quick ratio, respectively?

(Multiple Choice)

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Question 35

In a common-size balance sheet for a retail store, the 100 percent amount is for

(Multiple Choice)

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Question 36

Using the following information reported in an annual report, prepare a horizontal analysis of the consolidated balance sheets. (Round percentage answers to one decimal place.)

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Question 37

Days' inventory on hand is used to analyze

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Question 38

Liquidity is the ability to earn a satisfactory net income.

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Question 39

Days' payable measures the relative size of accounts payable.

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Question 40

Showing 21 - 40 of 163

Exam 16: Financial Performance Measurement

Executive officers' compensation is typically comprised of all of the following except

Vertical analysis is the same as common-size analysis.

Use the following information to calculate the ratios requested below. Round answers to two decimal places. Show your work.

Which of the following situations severely limits the use of industry norms as standards of comparison?

Which of the following must be reported by diversified companies for each of their operating segments?

It is in the best interests of a company to base executive compensation on a single performance measure.

Investors, creditors, and customers are considered external users of financial statements.

The number of days' sales uncollected is determined by dividing

The analysis of risk and return is important to both investors and creditors.

It is possible for horizontal analysis to indicate a decrease in revenues from one year to another and an increase in net income.

The calculation of free cash flow contains a deduction for

In trend analysis, each item is expressed as a percentage of the

How would the collection of an account receivable affect the current ratio and the quick ratio, respectively?

In a common-size balance sheet for a retail store, the 100 percent amount is for

Using the following information reported in an annual report, prepare a horizontal analysis of the consolidated balance sheets. (Round percentage answers to one decimal place.)

Days' inventory on hand is used to analyze

Liquidity is the ability to earn a satisfactory net income.

Days' payable measures the relative size of accounts payable.

Uses of Accounting Information and the Financial Statements

Analyzing Business Transactions

Measuring Business Income

Completing the Accounting Cycle

Financial Reporting and Analysis

The Operating Cycle and Merchandising Operations

Internal Control

Inventories

Cash and Receivables

Current Liabilities and Fair Value Accounting

Long Term Assets

Contributed Capital

Long Term Liabilities

The Corporate Income Statement and the Statement of Stockholders Equity

The Statement of Cash Flows

Partnerships

The Changing Business Environment-A Managers Pers

Cost Concepts and Cost Allocation

Costing Systems: Job Order Costing

Costing Systems Process Costing

Activity-Based Systems-Abm and Lean

Cost Behavior Analysis

The Budgeting Process

Performance Management and Evaluation

Standard Costing and Variance Analysis

Short Run Decision Analysis

Capital Investment Analysis

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