Exam 2: Introduction to Financial Statement Analysis

The exchanges in which of the following countries or regions do NOT accept the International Financial Reporting Standards set out by the International Accounting Standards Board?

Why must care be taken when comparing a firm's share price to its operating income?

Luther Corporation Consolidated Balance Sheet December 31, 2006 and 2005 (in $ millions) Refer to the balance sheet above. If in 2006 Luther has 10.2 million shares outstanding and these shares are trading at $16 per share, then Luther's market-to-book ratio would be closest to ________.

Allen Company bought a new copy machine to be depreciated straight line for three years for use by sales personnel. Where would this purchase be reflected on the Statement of Cash Flows?

The income statement reports the firm's revenues and expenses, and it computes the firm's bottom line of net income, or earnings.

Luther Corporation Consolidated Income Statement Year ended December 31 (in $millions) Refer to the income statement above. For the year ending December 31, 2006 Luther's earnings per share is closest to ________.