Exam 16: How Well Am I Doing Financial Statement Analysis

Excerpts from Melby Corporation's most recent balance sheet appear below: Net income for Year 2 was $94,000. Dividends on common stock were $33,000 in total and dividends on preferred stock were $11,000 in total. The return on common stockholders' equity for Year 2 is closest to:

Data from Sligh Corporation's most recent balance sheet and income statement appear below: Required: Compute the average sale period for this year:

In determining whether a company's financial condition is improving or deteriorating over time, vertical analysis of financial statement data would be more useful than horizontal 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 acid-test ratio at the end of Year 2 is closest to:

Last year, Bartberger Corporation's dividend on common stock was $10.20 per share and the dividend on preferred stock was $3.60 per share. The market price of common stock at the end of the year was $51.70 per share. The dividend yield ratio 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 accounts receivable turnover for Year 2 was closest to:

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 debt-to-equity ratio at the end of Year 2 is closest to:

Dowlen Corporation's most recent balance sheet and income statement appear below: Dividends on common stock during Year 2 totaled $60 thousand. Dividends on preferred stock totaled $10 thousand. The market price of common stock at the end of Year 2 was $10.74 per share. 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.

Harrison Company, a retailer, had cost of goods sold of $180,000 last year. The beginning inventory balance was $26,000 and the ending inventory balance was $24,000. The company's inventory turnover was closest to:

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

Shull 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 $9.80 per share. Required: Compute the following for Year 2: a. Gross margin percentage. b. Earnings per share (of common stock). c. Price-earnings ratio. d. Dividend payout ratio. e. Dividend yield ratio. f. Return on total assets. g. Return on common stockholders' equity. h. Book value per share. i. Working capital. j. Current ratio. k. Acid-test ratio. l. Accounts receivable turnover. m. Average collection period. n. Inventory turnover. o. Average sale period. p. Times interest earned. q. Debt-to-equity ratio.

Frawner Company had $140,000 in sales on account last year. The beginning accounts receivable balance was $12,000 and the ending accounts receivable balance was $10,000. The company's accounts receivable turnover was closest to:

The price-earnings ratio is determined by dividing the price of a product by its profit margin.

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 dividend yield ratio for Year 2 is closest to:

Iffert Corporation's net income last year was $4,040,000. The dividend on common stock was $6.40 per share and the dividend on preferred stock was $2.30 per share. The market price of common stock at the end of the year was $43.30 per share. Throughout the year, 300,000 shares of common stock and 100,000 shares of preferred stock were outstanding. The dividend payout ratio is closest to:

Kerson Corporation's most recent balance sheet and income statement appear below: Required: Compute the following for Year 2: a. Times interest earned. b. Debt-to-equity ratio.

Data from Shamp Corporation's most recent balance sheet and income statement appear below: Required: Compute the average collection period for this year:

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 working capital at the end of Year 2 is:

Information concerning the common stock of Morris Company as of the end of the company's fiscal year is presented below. The dividend yield ratio is closest to:

Odegaard Corporation's net income last year was $1,811,000. The dividend on common stock was $3.20 per share and the dividend on preferred stock was $1.00 per share. The market price of common stock at the end of the year was $50.20 per share. Throughout the year, 300,000 shares of common stock and 200,000 shares of preferred stock were outstanding. Required: Compute the price-earnings ratio. Show your work!