Exam 16: How Well Am I Doing Financial Statement Analysis

Excerpts from Shelton Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,320 and the cost of goods sold was $890. -The average sale period for Year 2 is closest to:

If a company's bonds bear an interest rate of 8%, the tax rate is 30%, and the company's assets are generating an after-tax return of 7%, then the leverage would be:

Last year Jack Company had a net income of $270,000, income tax expense of $50,000, and interest expense of $20,000. The company's times interest earned was closest to:

Cintron Corporation's total current assets are $370,000, its noncurrent assets are $740,000, its total current liabilities are $300,000, its long-term liabilities are $430,000, and its stockholders' equity is $380,000. The current ratio is closest to:

The acid-test ratio is a test of the quality of accounts receivable--in other words, whether they are likely to be collected.

The gross margin percentage is computed taking the difference between sales and cost of goods and then dividing the result by sales.

Financial statements for Oram Company appear below: Dividends during Year 2 totaled $161 thousand, of which $10 thousand were preferred dividends. The market price of a share of common stock on December 31, Year 2 was $610. -Oram Company's earnings per share of common stock for Year 2 was closest to:

Financial statements for Praven Company appear below: Dividends during Year 2 totaled $89 thousand, of which $18 thousand were preferred dividends. The market price of a share of common stock on December 31, Year 2 was $130. Required: Compute the following for Year 2: a. Earnings per share of common stock. b. Price-earnings ratio. c. Dividend payout ratio. d. Dividend yield ratio. e. Return on total assets. f. Return on common stockholders' equity. g. Book value per share. h. Working capital. i. Current ratio. j. Acid-test ratio. k. Accounts receivable turnover. l. Average collection period. m. Inventory turnover. n. Average sale period. o. Times interest earned. p. Debt-to-equity ratio.

Lesmerises Corporation's most recent balance sheet and income statement appear below: Dividends on common stock during Year 2 totaled $40 thousand. Dividends on preferred stock totaled $10 thousand. The market price of common stock at the end of Year 2 was $2.85 per share. -The accounts receivable turnover for Year 2 is closest to:

Arston Company's net income last year was $300,000. The company has 150,000 shares of common stock and 60,000 shares of preferred stock outstanding. There was no change in the number of common or preferred shares outstanding during the year. The company declared and paid dividends last year of $1.50 per share on the common stock and $0.60 per share on the preferred stock. The earnings per share of common stock is closest to:

Financial statements for Larkins Company appear below: Dividends during Year 2 totaled $135 thousand, of which $12 thousand were preferred dividends. The market price of a share of common stock on December 31, Year 2 was $150. -Lisa Inc.'s acid-test ratio at December 31, Year 2, was closest to:

Which of the following is true regarding the calculation of return on total assets?

Excerpts from Deandrade Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,360 and the cost of goods sold was $830. -The inventory turnover for Year 2 is closest to:

Dadisman Corporation's most recent balance sheet and income statement appear below: Dividends on common stock during Year 2 totaled $30 thousand. Dividends on preferred stock totaled $20 thousand. The market price of common stock at the end of Year 2 was $6.75 per share. -The book value per share at the end of Year 2 is closest to:

Data from Karmely Corporation's most recent balance sheet and the company's income statement appear below: -The times interest earned for Year 2 is closest to:

Horizontal analysis of financial statements is accomplished through:

Mccaughey Corporation's most recent balance sheet and income statement appear below: -The accounts receivable turnover for Year 2 is closest to:

Financial statements for Oram Company appear below: Dividends during Year 2 totaled $161 thousand, of which $10 thousand were preferred dividends. The market price of a share of common stock on December 31, Year 2 was $610. -Oram Company's accounts receivable turnover for Year 2 was closest to:

Data from Alf Corporation's most recent balance sheet and income statement appear below: The average collection period for this year is closest to:

Guynn Corporation's most recent balance sheet and income statement appear below: Dividends on common stock during Year 2 totaled $10 thousand. Dividends on preferred stock totaled $5 thousand. The market price of common stock at the end of Year 2 was $7.05 per share. -The earnings per share of common stock for Year 2 is closest to: