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 collection period for Year 2 is closest to:

Assuming that a company has a current ratio greater than 1.0, repaying a short-term note payable will increase the current ratio.

Data from Gofman Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,300 and the cost of goods sold was $900. -The average sale period for Year 2 is closest to:

Pauk Corporation has provided the following data from its most recent income statement: The times interest earned ratio is closest to:

Biancuzzo Corporation has provided the following data from its most recent balance sheet: The debt-to-equity ratio is 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 collection period for Year 2 is closest to:

Mccaughey Corporation's most recent balance sheet and income statement appear below: -The average sale period for Year 2 is closest to:

Excerpts from Dinis Corporation's most recent balance sheet (in thousands of dollars) appear below: Sales on account during the year totaled $1,240 thousand. Cost of goods sold was $770 thousand. Required: Compute the following for Year 2: a. Working capital. b. Current ratio. c. Acid-test ratio. d. Accounts receivable turnover. e. Average collection period. f. Inventory turnover. g. Average sale period.

When computing the return on total assets, the after-tax effect of interest expense must be subtracted from net income.

Grast Company had $170,000 in sales on account last year. The beginning accounts receivable balance was $14,000 and the ending accounts receivable balance was $16,000. The company's average collection period 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 return on total assets for Year 2 was 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 price-earnings ratio for Year 2 is closest to:

The following account balances have been provided for the end of the most recent year: The book value per share is:

The times interest earned ratio of McHugh Company is 4.5. The interest expense for the year was $20,000, and the company's tax rate is 40%. The company's net income is:

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 current ratio at the end of Year 2 is closest to:

What effect will a year-end increase in the market price of a corporation's common stock have on the following ratios?

If the assets in which funds are invested have a rate of return lower than the fixed rate of return paid to the supplier of the funds, then financial leverage is positive.

Financial statements for Marcalo Company appear below: -Marcalo Company's acid-test ratio at the end of Year 2 was closest to:

Gattuso Corporation's total current assets are $270,000, its noncurrent assets are $760,000, its total current liabilities are $130,000, its long-term liabilities are $400,000, and its stockholders' equity is $500,000. Required: Compute the company's current ratio. Show your work!

Excerpts from Thi Corporation's most recent balance sheet appear below: Net income for Year 2 was $143,000. Dividends on common stock were $60,000 in total and dividends on preferred stock were $23,000 in total. Required: Compute the return on common stockholders' equity. Show your work!