Question 1

The ability to provide financial rewards sufficient to attract and retain financing is called:

Accepted Answer

A) Liquidity and efficiency. 
B) Solvency. 
C) Profitability. 
D) Market prospects. 
E) Creditworthiness. 
A) Liquidity and efficiency. 
B) Solvency. 
C) Profitability. 
D) Market prospects. 
E) Creditworthiness.

Question 2

Comparative statements for Warmer Corporation are shown below:   Calculate trend percentages for all income statement amounts shown and comment on the results. Use 2016 as the base year. Comment on the results.

Accepted Answer

@#IMG-DLM& During 2017, sales declined, cost of sa

Question 3

The income level most likely to continue into the future and is commonly used in price-earnings ratios and other market-based measures of performance is the ________________________.

Accepted Answer

The answer of The income level most likely to continue...

Question 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?

Accepted Answer

Earnings per share = $78,000/1

Question 5

A corporation reported cash of $27,000 and total assets of $461,000 on its balance sheet. Its common-size percent for cash equals:

Accepted Answer

A) 17.1%. 
B) 58.6%. 
C) 100%. 
D) 5.86%. 
E) 1707%. 
A) 17.1%. 
B) 58.6%. 
C) 100%. 
D) 5.86%. 
E) 1707%.

Question 6

Refer to the following selected financial information from Graphics, Inc. Compute the company's times interest earned.

Accepted Answer

A) 6.2. 
B) 2.5. 
C) 8.7. 
D) 9.7. 
E) 3.7. 
A) 6.2. 
B) 2.5. 
C) 8.7. 
D) 9.7. 
E) 3.7.

Question 7

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

Accepted Answer

Vertical analysis is used to evaluate in

Question 8

For each ratio listed, identify whether the change in ratio value from 2016 to 2017 is usually regards as favorable (F) or unfavorable (U).

Accepted Answer

1. U, 2. F

Question 9

Refer to the following selected financial information from McCormik, LLC. Compute the company's current ratio for Year 2.

Accepted Answer

A) 2.26. 
B) 1.98. 
C) 2.95. 
D) 3.05. 
E) 1.88. 
A) 2.26. 
B) 1.98. 
C) 2.95. 
D) 3.05. 
E) 1.88.

Question 10

Market prospects are the ability to provide financial rewards sufficient to attract and retain financing.

Accepted Answer

A) True 
 B)False

Question 11

A company reports basic earnings per share of $3.50, cash dividends per share of $1.25, and a market price per share of $64.75. The company's dividend yield equals:

Accepted Answer

A) 1.93%. 
B) 2.14%. 
C) 4.67%. 
D) 5.41%. 
E) 18.50%. 
A) 1.93%. 
B) 2.14%. 
C) 4.67%. 
D) 5.41%. 
E) 18.50%.

Question 12

Ash Company reported sales of $400,000 for Year 1, $450,000 for Year 2, and $500,000 for Year 3. Using Year 1 as the base year, what were the trend percents for Years 2 and 3 compared to the base year?

Accepted Answer

A) 80% for Year 2 and 90% for Year 3. 
B) 88% for Year 2 and 80% for Year 3. 
C) 88% for Year 2 and 90% for Year 3. 
D) 112.5% for Year 2 and 125% for Year 3. 
E) 125% for Year 2 and 112.5% for Year 3. 
A) 80% for Year 2 and 90% for Year 3. 
B) 88% for Year 2 and 80% for Year 3. 
C) 88% for Year 2 and 90% for Year 3. 
D) 112.5% for Year 2 and 125% for Year 3. 
E) 125% for Year 2 and 112.5% for Year 3.

Question 13

The following summaries from the income statements and balance sheets of Kouris Company and Brittania, Inc. are presented below.
(1) For both companies for 2017, compute the:
(a) Current ratio
(b) Acid-test ratio
(c) Accounts receivable turnover
(d) Inventory turnover
(e) Days' sales in inventory
(f) Days' sales uncollected
Which company do you consider to be the better short-term credit risk? Explain.
(2) For both companies for 2017, compute the:
(a) Profit margin ratio
(b) Return on total assets
(c) Return on common stockholders' equity
Which company do you consider to have better profitability ratios?

Accepted Answer

@#IMG-DLM& Brittania has higher current ratios and

Question 14

Powers Company reported Net Sales of $1,200,000 and average Accounts Receivable, net of $78,500. The accounts receivable turnover ratio is:

Accepted Answer

A) 0.65 times 
B) 14.3 times 
C) 28.6 times 
D) 15.3 times 
E) 16.3 times 
A) 0.65 times 
B) 14.3 times 
C) 28.6 times 
D) 15.3 times 
E) 16.3 times

Question 15

Express the following income statement information in common-size percentages (round to nearest whole percent). Comment on the results.

Accepted Answer

@#IMG-DLM& Comments: Although a smaller percent of

Question 16

Comparative financial statements are reports that show financial amounts in side by side columns on a single statement for analysis purposes.

Accepted Answer

A) True 
 B)False

Question 17

Efficiency refers to how productive a company is in using its assets, and is usually measured relative to how much revenue is generated from a certain level of assets.

Accepted Answer

A) True 
 B)False

Question 18

Comparative financial statements in which each individual financial statement amount is expressed as a percentage of a base amount are called:

Accepted Answer

A) Asset comparative statements. 
B) Percentage comparative statements. 
C) Common-size comparative statements. 
D) Sales comparative statements. 
E) General-purpose financial statements. 
A) Asset comparative statements. 
B) Percentage comparative statements. 
C) Common-size comparative statements. 
D) Sales comparative statements. 
E) General-purpose financial statements.

Question 19

Industry standards for financial statement analysis:

Accepted Answer

A) Are based on a single competitor's financial performance. 
B) Are set by the government. 
C) Are available for the financial performance and condition of the company's industry. 
D) Are based on rules of thumb. 
E) Compare a company's income with its prior year's income. 
A) Are based on a single competitor's financial performance. 
B) Are set by the government. 
C) Are available for the financial performance and condition of the company's industry. 
D) Are based on rules of thumb. 
E) Compare a company's income with its prior year's income.

Question 20

The standards for comparisons when interpreting measures from financial statement analysis include (1) ___________, (2) ____________, (3) _____________, and (4) _______________.

Accepted Answer

intra-company; compe

The ability to provide financial rewards sufficient to attract and retain financing is called:

Comparative statements for Warmer Corporation are shown below: Calculate trend percentages for all income statement amounts shown and comment on the results. Use 2016 as the base year. Comment on the results.

The income level most likely to continue into the future and is commonly used in price-earnings ratios and other market-based measures of performance is the ________________________.

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?

A corporation reported cash of $27,000 and total assets of $461,000 on its balance sheet. Its common-size percent for cash equals:

Refer to the following selected financial information from Graphics, Inc. Compute the company's times interest earned.

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

For each ratio listed, identify whether the change in ratio value from 2016 to 2017 is usually regards as favorable (F) or unfavorable (U).

Refer to the following selected financial information from McCormik, LLC. Compute the company's current ratio for Year 2.

Market prospects are the ability to provide financial rewards sufficient to attract and retain financing.

A company reports basic earnings per share of $3.50, cash dividends per share of $1.25, and a market price per share of $64.75. The company's dividend yield equals:

Ash Company reported sales of $400,000 for Year 1, $450,000 for Year 2, and $500,000 for Year 3. Using Year 1 as the base year, what were the trend percents for Years 2 and 3 compared to the base year?

Powers Company reported Net Sales of $1,200,000 and average Accounts Receivable, net of $78,500. The accounts receivable turnover ratio is:

Express the following income statement information in common-size percentages (round to nearest whole percent). Comment on the results.

Comparative financial statements are reports that show financial amounts in side by side columns on a single statement for analysis purposes.

Efficiency refers to how productive a company is in using its assets, and is usually measured relative to how much revenue is generated from a certain level of assets.

Comparative financial statements in which each individual financial statement amount is expressed as a percentage of a base amount are called:

Industry standards for financial statement analysis:

The standards for comparisons when interpreting measures from financial statement analysis include (1) _____, (2) , (3) _, and (4) _________.

Introducing Financial Accounting

Accounting System and Financial Statements

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Applying Present and Future Values

Investments and International Operations

Reporting and Analyzing Partnerships

Filters

Exam 13: Analyzing and Interpreting Financial Statements

The ability to provide financial rewards sufficient to attract and retain financing is called:

Comparative statements for Warmer Corporation are shown below: Calculate trend percentages for all income statement amounts shown and comment on the results. Use 2016 as the base year. Comment on the results.

The income level most likely to continue into the future and is commonly used in price-earnings ratios and other market-based measures of performance is the ________________________.

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?

A corporation reported cash of $27,000 and total assets of $461,000 on its balance sheet. Its common-size percent for cash equals:

Refer to the following selected financial information from Graphics, Inc. Compute the company's times interest earned.

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

For each ratio listed, identify whether the change in ratio value from 2016 to 2017 is usually regards as favorable (F) or unfavorable (U).

Refer to the following selected financial information from McCormik, LLC. Compute the company's current ratio for Year 2.

Market prospects are the ability to provide financial rewards sufficient to attract and retain financing.

A company reports basic earnings per share of $3.50, cash dividends per share of $1.25, and a market price per share of $64.75. The company's dividend yield equals:

Ash Company reported sales of $400,000 for Year 1, $450,000 for Year 2, and $500,000 for Year 3. Using Year 1 as the base year, what were the trend percents for Years 2 and 3 compared to the base year?

Powers Company reported Net Sales of $1,200,000 and average Accounts Receivable, net of $78,500. The accounts receivable turnover ratio is:

Express the following income statement information in common-size percentages (round to nearest whole percent). Comment on the results.

Comparative financial statements are reports that show financial amounts in side by side columns on a single statement for analysis purposes.

Efficiency refers to how productive a company is in using its assets, and is usually measured relative to how much revenue is generated from a certain level of assets.

Comparative financial statements in which each individual financial statement amount is expressed as a percentage of a base amount are called:

Industry standards for financial statement analysis:

The standards for comparisons when interpreting measures from financial statement analysis include (1) ___________, (2) ____________, (3) _____________, and (4) _______________.

Introducing Financial Accounting

Accounting System and Financial Statements

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Applying Present and Future Values

Investments and International Operations

Reporting and Analyzing Partnerships

Filters

The standards for comparisons when interpreting measures from financial statement analysis include (1) _____, (2) , (3) _, and (4) _________.