Exam 16: How Well Am I Doing Financial Statement Analysis

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 current ratio at the end of 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 return on total assets for Year 2 is closest to:

The following information relates to Poblano Company for last year: -The expected dividend per share of common stock is:

The price-earnings ratio is computed by dividing the market price per share by the current earnings per share.

A company's current ratio and acid-test ratios are both greater than 1. If obsolete inventory is written off, this would:

Selected financial data (in thousands of dollars) for Barnstable Company appear below: -Between Year 1 and Year 2, the times interest earned ratio:

Harwichport Company has a current ratio of 3.5 and an acid-test ratio of 2.8. Current assets equal $175,000 of which $5,000 consists of prepaid expenses. The remainder of current assets consists of cash, accounts receivable, marketable securities, and inventory. Harwichport Company's inventory must be:

Irawan Company, a retailer, had cost of goods sold of $200,000 last year. The beginning inventory balance was $24,000 and the ending inventory balance was $22,000. The company's average sale period was closest to:

VIM Company purchased $100,000 in inventory from its suppliers on credit terms. The company's acid-test ratio would most likely:

The total assets of the Philbin Company on January 1 were $2.3 million and on December 31 were $2.5 million. Net income was $188,000. Dividends totaled $75,000, interest expense totaled $70,000, and the tax rate was 30%. The return on total assets was closest to:

When computing the acid-test ratio, prepaid expenses are ignored.

Centerville Company's debt-to-equity ratio is 0.60 Total assets are $320,000, current assets are $170,000 and working capital is $80,000. Centerville's long-term liabilities must be:

Starrs Company has current assets of $300,000 and current liabilities of $200,000. Which of the following transactions would increase its working capital?

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 current ratio at the end of 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 return on total assets 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 working capital at the end of Year 2 is:

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 common stockholders' equity 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 return on common stockholders' equity for Year 2 is closest to:

Craston Company's net income last year was $70,000. The company paid preferred dividends of $10,000 and its average common stockholders' equity was $480,000. The company's return on common stockholders' equity for the year 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 earnings per share of common stock for Year 2 was closest to: