Exam 16: How Well Am I Doing Financial Statement Analysis

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 dividend payout ratio for Year 2 is closest to:

Condensed financial statements of Miller Company at the beginning and at the end of the current year are given below: The company paid total dividends of $15,000 during the year, of which $5,000 were to preferred stockholders. The market price of a share of common stock at the end of the year was $30. Required: On the basis of the information given above, fill in the blanks with the appropriate figures. Example: The current ratio at the end of the current year would be computed by dividing $270,000 by $100,000 a. The acid-test ratio at the end of the current year would be computed by dividing _______________ by _________________. b. The inventory turnover for the year would be computed by dividing _______________ by _________________. c. The debt-to-equity ratio at the end of the current year would be computed by dividing _______________ by _________________. d. The earnings per share of common stock would be computed by dividing _______________ by _________________. e. The accounts receivable turnover for the year would be computed by dividing _______________ by _________________. f. The times interest earned for the year would be computed by dividing _______________ by _________________. g. The return on common stockholders' equity for the year would be computed by dividing _______________ by _________________. h. The dividend yield would be computed by dividing _______________ by _________________.

Naser Corporation's total current assets are $390,000, its noncurrent assets are $500,000, its total current liabilities are $330,000, its long-term liabilities are $370,000, and its stockholders' equity is $190,000. Working capital is:

Financial statements for Marcalo Company appear below: -Marcalo Company's accounts receivable turnover for Year 2 was 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. -Larkins Company's dividend payout ratio for Year 2 was closest to:

The following data have been taken from your company's financial records for the current year: The price-earnings ratio is:

Financial statements for Marcalo Company appear below: -Marcalo Company's average sale period for Year 2 was 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 dividend yield ratio 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 average sale period for Year 2 was closest to:

Financial statements for Marcalo Company appear below: -Marcalo Company's inventory 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 average sale period for Year 2 is closest to:

Excerpts from Stys Corporation's most recent balance sheet and income statement appear below: Dividends on common stock during Year 2 totaled $50 thousand. Dividends on preferred stock totaled $10 thousand. The market price of common stock at the end of Year 2 was $8.20 per share. -The book value per share at the end of Year 2 is closest to:

Wernett Corporation's net income for the most recent year was $1,509,000. A total of 200,000 shares of common stock and 100,000 shares of preferred stock were outstanding throughout the year. Dividends on common stock were $4.95 per share and dividends on preferred stock were $1.35 per share. The earnings per share of common stock is closest to:

Kramer Company has total assets of $180,000 and total liabilities of $60,000. The company's debt-to-equity ratio 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 return on total assets for Year 2 is closest to:

Shelzo Inc., a manufacturer of construction equipment is considering the purchase of one of its suppliers, Raritron Industries. The purchase has been given preliminary approval by Shelzo's Board of Directors, and several discussions have taken place between the management of both companies. Raritron has submitted financial data for the past several years. Shelzo's controller has analyzed Raritron's financial statements and prepared the following ratio analysis comparing Raritron's performance with the industry averages. Required: Using the information provided above for Raritron Industries: a. 1. Identify the two ratios from the above list that would be of most interest to short-term creditors. Explain what these two ratios measure. What do these two ratios indicate about Shelzo Inc.? b. 1. Identify the three ratios from the above list that would be of most interest to stockholders. Explain what these three ratios measure. What do these three ratios indicate about Shelzo Inc.? c. 1. Identify the two ratios from the above list that would be of most interest to long-term creditors. Explain what these two ratios measure. What do these two ratios indicate about Shelzo Inc.?

Petrosino Corporation's most recent income statement appears below: The beginning balance of total assets was $760,000 and the ending balance was $710,000. Required: Compute the return on total assets. Show your work!

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 acid-test ratio at the end of Year 2 is closest to:

Which of the following accounts would be included in the calculation of the acid-test ratio?

Financial statements for Marcalo Company appear below: -Marcalo Company's working capital (in thousands of dollars) at the end of Year 2 was closest to: