Question 1

Horizontal analysis of financial statements may be accomplished through:

Accepted Answer

A)  placing statement items on an after-tax basis. 
B)  computing net income as a percentage of sales. 
C)  computing both earnings per share and the price-earnings ratio. 
D)  trend percentages.

Question 2

Ben Company has the following data for the year just ended:  Ben Company's current liabilities were:

Accepted Answer

A)  $35,000. 
B)  $43,750. 
C)  $50,400. 
D)  $63,000.

Question 3

Financial statements for Quade Company appear below:

Accepted Answer

The answer of Financial statements for Quade Company appear below:...

Question 4

Condensed financial statements of Miller Company at the beginning and at the end of the current year are given below:

Accepted Answer

The answer of Condensed financial statements of Miller Company at...

Question 5

Trend percentages state several years' financial data in terms of a base year.For example,sales for every year would be stated as a percentage of the sales in the base year.

Accepted Answer

A) True 
 B)False

Question 6

Calculate the receivable turnover for 20 × 4

Accepted Answer

The answer of Calculate the receivable turnover for 20 ×...

Question 7

Last year Jabber Company had a net income of $180,000,income tax expense of $62,000,and interest expense of $20,000.The company's times interest earned was closest to:

Accepted Answer

A)  4.90 times. 
B)  9.00 times. 
C)  10.00 times. 
D)  13.10 times.

Question 8

Lisa Inc.'s book value per share of common stock at December 31,20 × 7,was closest to:

Accepted Answer

A)  $10.00. 
B)  $11.25. 
C)  $19.33. 
D)  $18.33.

Question 9

Harton Company,a retailer,had cost of goods sold of $250,000 last year.The beginning inventory balance was $20,000 and the ending inventory balance was $22,000.The company's inventory turnover was closest to:

Accepted Answer

A)  5.95 times. 
B)  11.36 times. 
C)  11.90 times. 
D)  12.50 times.

Question 10

Calculate the return on total assets for 20 × 4

Accepted Answer

The answer of Calculate the return on total assets for...

Question 11

Which of the following is not a source of financial leverage?

Accepted Answer

A)  Bonds payable. 
B)  Accounts payable. 
C)  Preferred shares. 
D)  Retained earnings.

Question 12

Larosa Company's return on total assets for 20 × 6 was closest to:

Accepted Answer

A)  7.6%. 
B)  8.7%. 
C)  9.2%. 
D)  9.9%.

Question 13

Harris Company,a retailer,had cost of goods sold of $290,000 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:

Accepted Answer

A)  5.80 times. 
B)  11.15 times. 
C)  11.60 times. 
D)  12.08 times.

Question 14

Karma Company has total assets of $190,000 and total liabilities of $90,000.The company's debt-to-equity ratio is closest to:

Accepted Answer

A)  0.32 to 1. 
B)  .047 to 1. 
C)  0.53 to 1. 
D)  0.90 to 1.

Question 15

Oratz Company's return on total assets for 20 × 6 was closest to:

Accepted Answer

A)  8.9%. 
B)  10.0%. 
C)  10.5%. 
D)  11.1%.

Question 16

Larned Company's dividend yield ratio on December 31,20 × 6 was closest to:

Accepted Answer

A)  5.5%. 
B)  8.3%. 
C)  8.7%. 
D)  9.1%.

Question 17

Orange Company's times interest earned for 20 × 6 was closest to:

Accepted Answer

A)  11.2 times. 
B)  16.0 times. 
C)  17.0 times. 
D)  28.3 times.

Question 18

Krakov Company has total assets of $170,000 and total liabilities of $80,000.The company's debt-to-equity ratio is closest to:

Accepted Answer

A)  0.32 to 1. 
B)  0.47 to 1. 
C)  0.53 to 1. 
D)  0.89 to 1.

Question 19

Narita Company's debt-to-equity ratio at the end of 20 × 6 was closest to:

Accepted Answer

A)  0.17 to 1. 
B)  0.25 to 1. 
C)  0.42 to 1. 
D)  0.58 to 1.

Question 20

Brawer Company's net income last year was $55,000 and its interest expense was $20,000.Total assets at the beginning of the year were $660,000 and total assets at the end of the year were $620,000.The company's income tax rate was 30%.The company's return on total assets for the year was closest to:

Accepted Answer

A)  8.6%. 
B)  9.5%. 
C)  10.8%. 
D)  11.7%.

Exam 13: How Well Am I Doing Statement of Cash Flows