Question 1

Use the following selected information from Wheeler, LLC to determine the 2017 and 2016 trend percentages for net sales using 2016 as the base.

Accepted Answer

A) 36.4% for 2017 and 41.1% for 2016. 
B) 55.0% for 2017 and 56.0% for 2016. 
C) 119.4% for 2017 and 100.0% for 2016. 
D) 117.2% for 2017 and 100.0% for 2016. 
E) 65.1% for 2017 and 64.6% for 2016. 
A) 36.4% for 2017 and 41.1% for 2016. 
B) 55.0% for 2017 and 56.0% for 2016. 
C) 119.4% for 2017 and 100.0% for 2016. 
D) 117.2% for 2017 and 100.0% for 2016. 
E) 65.1% for 2017 and 64.6% for 2016.

Question 2

Yeats Corporation's sales in Year 1 were $396,000 and in Year 2 were $380,000. Using Year 1 as the base year, the percent change for Year 2 compared to the base year is:

Accepted Answer

A) 104%. 
B) (6%). 
C) (4%). 
D) 6%. 
E) 4%. 
A) 104%. 
B) (6%). 
C) (4%). 
D) 6%. 
E) 4%.

Question 3

Selected current year end financial information for a company is presented below. Calculate the following company ratios:
(a) Profit margin.
(b) Total asset turnover.
(c) Return on total assets.
(d) Return on common stockholders' equity (assume the company has no preferred stock).

Accepted Answer

(a) Profit margin = ($325,000/$4,700,000

Question 4

Net sales divided by average total assets is the:

Accepted Answer

A) Profit margin. 
B) Total asset turnover. 
C) Current ratio. 
D) Sales return ratio. 
E) Return on total assets. 
A) Profit margin. 
B) Total asset turnover. 
C) Current ratio. 
D) Sales return ratio. 
E) Return on total assets.

Question 5

Refer to the following selected financial information from Shakley's Incorporated. Compute the company's return on total assets for Year 2.

Accepted Answer

A) 9.6%. 
B) 15.2%. 
C) 2.6%. 
D) 22.2%. 
E) 14.5%. 
A) 9.6%. 
B) 15.2%. 
C) 2.6%. 
D) 22.2%. 
E) 14.5%.

Question 6

Express the following balance sheets for Safety Company in common-size percentages.

Accepted Answer

The answer of Express the following balance sheets for Safety...

Question 7

A good financial report does not link interpretations and conclusions of analysis with the underlying information.

Accepted Answer

A) True 
 B)False

Question 8

Refer to the following selected financial information from Shakley's Incorporated. Compute the company's times interest earned for Year 2.

Accepted Answer

A) 6.9. 
B) 4.8. 
C) 5.8. 
D) 14.0. 
E) 7.9. 
A) 6.9. 
B) 4.8. 
C) 5.8. 
D) 14.0. 
E) 7.9.

Question 9

The ability to generate future revenues and meet long-term obligations is referred to as:

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 10

Intra-company standards for financial statement analysis:

Accepted Answer

A) Are based on a company's prior performance and relations between its financial items. 
B) Are often set by competitors. 
C) Are set by the company's industry through published statistics. 
D) Are based on rules of thumb. 
E) Are published in Dun and Bradstreet. 
A) Are based on a company's prior performance and relations between its financial items. 
B) Are often set by competitors. 
C) Are set by the company's industry through published statistics. 
D) Are based on rules of thumb. 
E) Are published in Dun and Bradstreet.

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Explain the purpose of financial statement analysis for both external and internal users.

Accepted Answer

The purpose of financial statement analy

Question 13

Refer to the following selected financial information from Graceworks Corp. Compute the company's inventory turnover for Year 2.

Accepted Answer

A) 1.79. 
B) 1.71. 
C) 1.85. 
D) 0.93. 
E) 1.75. 
A) 1.79. 
B) 1.71. 
C) 1.85. 
D) 0.93. 
E) 1.75.

Question 14

Refer to the following selected financial information from Graceworks, Corp. Compute the company's days' sales in inventory for Year 2.

Accepted Answer

A) 203.4. 
B) 228.4. 
C) 179.5. 
D) 215.1. 
E) 113.3. 
A) 203.4. 
B) 228.4. 
C) 179.5. 
D) 215.1. 
E) 113.3.

Question 15

Graphical analysis of the balance sheet can be useful in assessing sources of financing.

Accepted Answer

A) True 
 B)False

Question 16

Refer to the following selected financial information from Marston Company. Compute the company's accounts receivable turnover for Year 2.

Accepted Answer

A) 8.36. 
B) 8.37. 
C) 4.78. 
D) 8.59. 
E) 8.54. 
A) 8.36. 
B) 8.37. 
C) 4.78. 
D) 8.59. 
E) 8.54.

Question 17

A company's calendar-year financial data are shown below. The company had total assets of $339,000 and total equity of $144,400 for the prior year. No additional shares of common stock were issued during the year. The December 31 market price per share is $49.50. Cash dividends of $19,500 were paid during the year. Calculate the following ratios for the company:
(a) debt ratio
(b) equity ratio
(c) debt-to-equity ratio
(d) times interest earned
(e) total asset turnover

Accepted Answer

The answer of A company's calendar-year financial data are shown...

Question 18

Selected current year company information follows:   The return on total assets is:

Accepted Answer

A) 2.24% 
B) 2.81% 
C) 3.64% 
D) 4.67% 
E) 6.28% 
A) 2.24% 
B) 2.81% 
C) 3.64% 
D) 4.67% 
E) 6.28%

Question 19

Financial statement analysis lessens the need for expert judgment.

Accepted Answer

A) True 
 B)False

Question 20

A financial statement analysis report helps to reduce uncertainty in business decisions through a rigorous and sound evaluation.

Accepted Answer

A) True 
 B)False

Use the following selected information from Wheeler, LLC to determine the 2017 and 2016 trend percentages for net sales using 2016 as the base.

Yeats Corporation's sales in Year 1 were $396,000 and in Year 2 were $380,000. Using Year 1 as the base year, the percent change for Year 2 compared to the base year is:

Selected current year end financial information for a company is presented below. Calculate the following company ratios: (a) Profit margin. (b) Total asset turnover. (c) Return on total assets. (d) Return on common stockholders' equity (assume the company has no preferred stock).

Net sales divided by average total assets is the:

Refer to the following selected financial information from Shakley's Incorporated. Compute the company's return on total assets for Year 2.

Express the following balance sheets for Safety Company in common-size percentages.

A good financial report does not link interpretations and conclusions of analysis with the underlying information.

Refer to the following selected financial information from Shakley's Incorporated. Compute the company's times interest earned for Year 2.

The ability to generate future revenues and meet long-term obligations is referred to as:

Intra-company standards for financial statement analysis:

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

Explain the purpose of financial statement analysis for both external and internal users.

Refer to the following selected financial information from Graceworks Corp. Compute the company's inventory turnover for Year 2.

Refer to the following selected financial information from Graceworks, Corp. Compute the company's days' sales in inventory for Year 2.

Graphical analysis of the balance sheet can be useful in assessing sources of financing.

Refer to the following selected financial information from Marston Company. Compute the company's accounts receivable turnover for Year 2.

Selected current year company information follows: The return on total assets is:

Financial statement analysis lessens the need for expert judgment.

A financial statement analysis report helps to reduce uncertainty in business decisions through a rigorous and sound evaluation.

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

Use the following selected information from Wheeler, LLC to determine the 2017 and 2016 trend percentages for net sales using 2016 as the base.

Yeats Corporation's sales in Year 1 were $396,000 and in Year 2 were $380,000. Using Year 1 as the base year, the percent change for Year 2 compared to the base year is:

Selected current year end financial information for a company is presented below. Calculate the following company ratios: (a) Profit margin. (b) Total asset turnover. (c) Return on total assets. (d) Return on common stockholders' equity (assume the company has no preferred stock).

Net sales divided by average total assets is the:

Refer to the following selected financial information from Shakley's Incorporated. Compute the company's return on total assets for Year 2.

Express the following balance sheets for Safety Company in common-size percentages.

A good financial report does not link interpretations and conclusions of analysis with the underlying information.

Refer to the following selected financial information from Shakley's Incorporated. Compute the company's times interest earned for Year 2.

The ability to generate future revenues and meet long-term obligations is referred to as:

Intra-company standards for financial statement analysis:

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

Explain the purpose of financial statement analysis for both external and internal users.

Refer to the following selected financial information from Graceworks Corp. Compute the company's inventory turnover for Year 2.

Refer to the following selected financial information from Graceworks, Corp. Compute the company's days' sales in inventory for Year 2.

Graphical analysis of the balance sheet can be useful in assessing sources of financing.

Refer to the following selected financial information from Marston Company. Compute the company's accounts receivable turnover for Year 2.

Selected current year company information follows: The return on total assets is:

Financial statement analysis lessens the need for expert judgment.

A financial statement analysis report helps to reduce uncertainty in business decisions through a rigorous and sound evaluation.

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