# Quiz 14: Financial Statement Analysis

Business

Q 1Q 1

Vertical analysis of financial statements is accomplished by preparing common-size statements.

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True False

True

Q 2Q 2

In determining whether a company's financial condition is improving or deteriorating over time, horizontal analysis of financial statement data would be more useful than vertical analysis.

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True False

True

Q 3Q 3

A common-size financial statement is a vertical analysis in which each financial statement account is expressed as a percentage.

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True False

True

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True False

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True False

Q 6Q 6

If the acid-test ratio is less than one, then paying off some current liabilities with cash will increase the acid-test (quick)ratio.

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True False

Q 7Q 7

A company could improve its acid-test ratio by selling some equipment it no longer needs for cash.

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True False

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True False

Q 9Q 9

Purchasing marketable securities with cash will have no effect on a company's acid-test ratio.

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True False

Q 10Q 10

As the accounts receivable turnover ratio decreases, the average collection period increases.

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True False

Q 11Q 11

If a company's operating cycle is much longer than its average payment period for suppliers, it creates the need to borrow money to fund its inventories and accounts receivable.

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True False

Q 12Q 12

All other things the same, purchasing inventory would decrease the inventory turnover ratio.

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True False

Q 13Q 13

Buying inventory in large lots to take advantage of quantity discounts can be responsible for a high inventory turnover ratio.

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True False

Q 14Q 14

All other things the same, when a company increases its inventories in anticipation of later higher sales, the accounts receivable turnover ratio for the current period increases.

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True False

Q 15Q 15

All other things the same, purchasing merchandise inventory would have no effect on the accounts receivable turnover ratio at a retailer.

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True False

Q 16Q 16

All other things the same, when a customer purchases an item for cash, the accounts receivable turnover ratio increases.

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True False

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True False

Q 18Q 18

To increase total asset turnover, management must either increase sales or reduce total stockholders' equity.

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True False

Q 19Q 19

The formula for the average sale period is: Average sale period = Accounts receivable turnover ÷ Inventory turnover.

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True False

Q 20Q 20

The formula for total asset turnover is: Total asset turnover = Total assets ÷ Total stockholders' equity.

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True False

Q 21Q 21

A company whose inventory turnover ratio is much slower than the average for its industry may have too much inventory or the wrong sorts of inventory.

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True False

Q 22Q 22

All other things the same, those who hold the company's debt (i.e., its creditors)would like a low debt-to-equity ratio to provide a buffer of protection.

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True False

Q 23Q 23

All other things the same, if long-term debt is exchanged for short-term debt, the debt-to-equity ratio will be unchanged.

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True False

Q 24Q 24

The times interest earned ratio is based on net income because that is the amount of earnings that is available for making interest payments.Interest expense is deducted before taxes are determined; creditors have first claim on the earnings before taxes are paid.

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True False

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True False

Q 26Q 26

The formula for the times interest earned ratio is: Times interest earned = Earnings before interest expense and income taxes ÷ Interest expense.

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True False

Q 27Q 27

If a company's return on assets is substantially lower than its cost of borrowing, then the common stockholders would normally want the company to have a relatively high debt/equity ratio.

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True False

Q 28Q 28

The formula for the return on equity is: Return on equity = Net income ÷ Average total stockholders' equity.

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True False

Q 29Q 29

When computing the return on equity, retained earnings should be excluded from the average total stockholders' equity.

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True False

Q 30Q 30

When computing the return on total assets, the interest expense is added back to net income to show what earnings would have been if the company had no debt.

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True False

Q 31Q 31

When a company sells used equipment for a loss, the net profit margin percentage is unaffected.

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True False

Q 32Q 32

All other things the same, if a company uses long-term debt to purchase land to develop in the future, the company's return on total assets will decrease.

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True False

Q 33Q 33

If a retailer sells a product whose contribution margin equals the gross margin percentage, the gross margin percentage will be unaffected by the transaction.

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True False

Q 34Q 34

The gross margin percentage is computed by dividing the gross margin by net income before interest and taxes.

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True False

Q 35Q 35

The formula for the net profit margin percentage is: Net profit margin percentage = Net income ÷ Sales.

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True False

Q 36Q 36

When fixed costs are included in the cost of goods sold, the gross margin percentage should increase and decrease with sales volume.

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True False

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True False

Q 38Q 38

A high price-earnings ratio means that investors are willing to pay a premium for the company's stock.

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True False

Q 39Q 39

An increase in the number of shares of common stock outstanding will increase a company's price-earnings ratio if the market price per share remains unchanged.

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True False

Q 40Q 40

The dividend payout ratio is equal to the dividend per share divided by the earnings per share.

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True False

Q 41Q 41

All other things the same, if the company purchases equipment on credit, this transaction would have no impact on the company's book value per share.

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True False

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True False

Q 43Q 43

The price-earnings ratio is determined by dividing market price per share of stock by the earnings per share.

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True False

Q 44Q 44

Earnings per share is computed by multiplying net income by the average number of common shares outstanding.

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True False

Q 45Q 45

Selling used equipment at book value for cash will:
A)increase working capital.
B)decrease working capital.
C)decrease the debt-to-equity ratio.
D)increase net income.

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Multiple Choice

Q 46Q 46

If current assets exceed current liabilities, prepaying an expense on the last day of the year will:
A)decrease the current ratio.
B)increase the acid-test ratio.
C)decrease the acid-test ratio.
D)increase the current ratio.

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Multiple Choice

Q 47Q 47

Zack Company has a current ratio of 2.5.What will be the effect of a purchase of inventory with cash on the acid-test ratio and on working capital?

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Multiple Choice

Q 48Q 48

Norton Inc.could improve its current ratio of 2 by:
A)paying a previously declared stock dividend.
B)writing off an uncollectible receivable.
C)selling merchandise on credit at a profit.
D)purchasing inventory on credit.

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Multiple Choice

Q 49Q 49

The ratio of total cash, marketable securities, accounts receivable, and short-term notes to current liabilities is:
A)the debt-to-equity ratio.
B)the current ratio.
C)the acid-test ratio.
D)working capital.

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Multiple Choice

Q 50Q 50

A company's current ratio is greater than 1.Purchasing raw materials on credit would:
A)increase the current ratio.
B)decrease the current ratio.
C)increase working capital.
D)decrease working capital.

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Multiple Choice

Q 51Q 51

Sand Company has an acid-test ratio of 0.8.Which of the following actions would improve the acid-test ratio?
A)Collect some accounts receivable.
B)Acquire some inventory on account.
C)Sell some equipment for cash.
D)Use cash to pay off some accounts payable.

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Multiple Choice

Q 52Q 52

A company's current ratio and its acid-test ratio are both greater than 1.Payment of an account payable would:
A)increase the current ratio but the acid-test ratio would not be affected.
B)increase the acid-test ratio but the current ratio would not be affected.
C)increase both the current and acid-test ratios.
D)decrease both the current and acid-test ratios.

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Multiple Choice

Q 53Q 53

Which of the following actions would improve a current ratio of 0.8?
A)Use cash to pay off some current liabilities.
B)Purchase additional marketable securities with cash.
C)Acquire a parcel of land in exchange for common stock.
D)Purchase additional inventory on credit.

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Multiple Choice

Q 54Q 54

Accounts receivable turnover will normally decrease as a result of:
A)the write-off of an uncollectible account against the allowance for bad debts.
B)a significant sales volume decrease near the end of the accounting period.
C)an increase in cash sales in proportion to credit sales.
D)a change in credit policy to lengthen the period for cash discounts.

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Multiple Choice

Q 55Q 55

The gross margin percentage is equal to:
A)(Net operating income + Selling and administrative expenses)/Sales
B)Net operating income/Sales
C)Cost of goods sold/Sales
D)Cost of goods sold/Net income

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Multiple Choice

Q 56Q 56

Which of the following is not a source of financial leverage?
A)Bonds payable.
B)Accounts payable.
C)Taxes payable.
D)Prepaid rent.

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Multiple Choice

Q 57Q 57

Which one of the following statements about book value per share is most correct?
A)Market price per common share usually approximates book value per common share.
B)Book value per common share is based on past transactions whereas the market price of a share of stock mainly reflects what investors expect to happen in the future.
C)A market price per common share that is greater than book value per common share is an indication of an overvalued stock.
D)Book value per common share is the amount that would be paid to stockholders if the company were sold to another company.

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Multiple Choice

Q 58Q 58

The market price of Friden Company's common stock increased from $15 to $18.Earnings per share of common stock remained unchanged.The company's price-earnings ratio would:
A)increase.
B)decrease.
C)remain unchanged.
D)impossible to determine.

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Multiple Choice

Q 59Q 59

The Seabury Corporation has a current ratio of 3.5 and an acid-test ratio of 2.8.The corporation's current assets consist of cash, marketable securities, accounts receivable, and inventories.Inventory equals $49,000.Seabury Corporation's current liabilities must be:
A)$70,000
B)$100,000
C)$49,000
D)$125,000

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Multiple Choice

Q 60Q 60

Data from Fontecchio Corporation's most recent balance sheet appear below: The corporation's acid-test ratio is closest to:
A)0.35
B)0.15
C)0.68
D)0.79

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Multiple Choice

Q 61Q 61

Feiler Corporation has total current assets of $483,000, total current liabilities of $347,000, total stockholders' equity of $1,057,000, total net plant and equipment of $1,031,000, total assets of $1,514,000, and total liabilities of $457,000.The company's current ratio is closest to:
A)0.32
B)0.30
C)1.39
D)0.95

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Multiple Choice

Q 62Q 62

Gnas Corporation's total current assets are $210,000, its noncurrent assets are $590,000, its total current liabilities are $160,000, its long-term liabilities are $490,000, and its stockholders' equity is $150,000.The current ratio is closest to:
A)1.31
B)0.76
C)0.33
D)0.36

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Multiple Choice

Q 63Q 63

Dratif Corporation's working capital is $33,000 and its current liabilities are $80,000.The corporation's current ratio is closest to:
A)1.41
B)0.59
C)3.42
D)0.41

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Multiple Choice

Q 64Q 64

Dennisport Corporation has an acid-test ratio of 2.5.It has current liabilities of $40,000 and noncurrent assets of $70,000.The corporation's current assets consist of cash, marketable securities, accounts receivable, prepaid expenses, and inventory; it has no short-term notes receivable.If Dennisport's current ratio is 3.1, its inventory and prepaid expenses must be:
A)$12,400
B)$24,000
C)$30,000
D)$40,000

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Multiple Choice

Q 65Q 65

Calin Corporation has total current assets of $615,000, total current liabilities of $230,000, total stockholders' equity of $1,183,000, total net plant and equipment of $958,000, total assets of $1,573,000, and total liabilities of $390,000.The company's working capital is:
A)$615,000
B)$1,183,000
C)$385,000
D)$958,000

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Multiple Choice

Q 66Q 66

McRae Corporation's total current assets are $380,000, its noncurrent assets are $500,000, its total current liabilities are $340,000, its long-term liabilities are $250,000, and its stockholders' equity is $290,000.Working capital is:
A)$380,000
B)$40,000
C)$250,000
D)$290,000

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Multiple Choice

Q 67Q 67

Erastic Corporation has $14,000 in cash, $8,000 in marketable securities, $34,000 in account receivable, $40,000 in inventories, and $42,000 in current liabilities.The corporation's current assets consist of cash, marketable securities, accounts receivable, and inventory.The corporation's acid-test ratio is closest to:
A)1.33
B)0.81
C)2.29
D)1.14

Free

Multiple Choice

Q 68Q 68

Windham Corporation has current assets of $400,000 and current liabilities of $500,000.Windham Corporation's current ratio would be increased by:
A)the purchase of $100,000 of inventory on account.
B)the payment of $100,000 of accounts payable.
C)the collection of $100,000 of accounts receivable.
D)refinancing a $100,000 long-term loan with short-term debt.

Free

Multiple Choice

Q 69Q 69

Stimac Corporation has total cash of $210,000, no marketable securities, total current receivables of $281,000, total inventory of $151,000, total prepaid expenses of $53,000, total current assets of $695,000, total current liabilities of $261,000, total stockholders' equity of $1,014,000, total assets of $1,415,000, and total liabilities of $401,000.The company's acid-test (quick)ratio is closest to:
A)2.08
B)1.73
C)2.66
D)1.88

Free

Multiple Choice

Q 70Q 70

Orem Corporation's current liabilities are $75,000, its long-term liabilities are $225,000, and its working capital is $100,000.If the corporation's debt-to-equity ratio is 0.30, total long-term assets must equal:
A)$1,000,000
B)$1,300,000
C)$1,125,000
D)$1,225,000

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Multiple Choice

Q 71Q 71

Irawaddy Company, a retailer, had cost of goods sold of $230,000 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:
A)36.5 days
B)73.0 days
C)38.1 days
D)34.9 days

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Multiple Choice

Q 72Q 72

Harris Corporation, 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 corporation's inventory turnover was closest to:
A)12.08
B)11.60
C)5.80
D)11.15

Free

Multiple Choice

Q 73Q 73

Natcher Corporation's accounts receivable at the end of Year 2 was $126,000 and its accounts receivable at the end of Year 1 was $130,000.The company's inventory at the end of Year 2 was $127,000 and its inventory at the end of Year 1 was $120,000.Sales, all on account, amounted to $1,380,000 in Year 2.Cost of goods sold amounted to $800,000 in Year 2.The company's operating cycle for Year 2 is closest to:
A)44.7 days
B)17.3 days
C)62.8 days
D)90.2 days

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Multiple Choice

Q 74Q 74

Kopas Corporation has provided the following data: The inventory turnover for this year is closest to:
A)3.09
B)0.98
C)1.03
D)3.05

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Multiple Choice

Q 75Q 75

Granger Corporation had $180,000 in sales on account last year.The beginning accounts receivable balance was $10,000 and the ending accounts receivable balance was $18,000.The corporation's average collection period was closest to:
A)20.3 days
B)28.4 days
C)36.5 days
D)56.8 days

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Multiple Choice

Q 76Q 76

During the year just ended, the retailer James Corporation purchased $425,000 of inventory.The inventory balance at the beginning of the year was $175,000.If the cost of goods sold for the year was $450,000, then the inventory turnover for the year was:
A)2.77
B)2.57
C)3.00
D)2.62

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Multiple Choice

Q 77Q 77

Laverde Corporation has provided the following data: The company's total asset turnover for Year 2 is closest to:
A)1.22
B)7.60
C)0.13
D)0.82

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Multiple Choice

Q 78Q 78

Spomer Corporation's inventory at the end of Year 2 was $114,000 and its inventory at the end of Year 1 was $120,000.Cost of goods sold amounted to $710,000 in Year 2.The company's inventory turnover for Year 2 is closest to:
A)5.92
B)1.05
C)6.07
D)6.23

Free

Multiple Choice

Q 79Q 79

Frantic Corporation had $130,000 in sales on account last year.The beginning accounts receivable balance was $10,000 and the ending accounts receivable balance was $16,000.The corporation's accounts receivable turnover was closest to:
A)5.00
B)13.00
C)10.00
D)8.13

Free

Multiple Choice

Q 80Q 80

Data from Keniston Corporation's most recent balance sheet and income statement appear below: The average collection period for this year is closest to:
A)39.1 days
B)45.1 days
C)54.3 days
D)57.5 days

Free

Multiple Choice

Q 81Q 81

Louie Corporation has provided the following data: The company's operating cycle for Year 2 is closest to:
A)81.0 days
B)150.5 days
C)79.2 days
D)9.7 days

Free

Multiple Choice

Q 82Q 82

Last year Truro Corporation purchased $800,000 of inventory.The cost of goods sold was $750,000 and the ending inventory was $125,000.The inventory turnover for the year was:
A)6.0
B)7.5
C)6.4
D)8.0

Free

Multiple Choice

Q 83Q 83

The accounts receivable for Note Corporation was $240,000 at the beginning of the year and $260,000 at the end of the year.If the accounts receivable turnover for the year was 8 and 20% of the total sales were cash sales, the total sales for the year were:
A)$2,600,000
B)$2,000,000
C)$2,400,000
D)$2,500,000

Free

Multiple Choice

Q 84Q 84

Smay Corporation has provided the following data: The accounts receivable turnover for this year is closest to:
A)1.01
B)0.99
C)6.08
D)6.11

Free

Multiple Choice

Q 85Q 85

Rawe Corporation's accounts receivable at the end of Year 2 was $329,000 and its accounts receivable at the end of Year 1 was $280,000.Sales, all on account, amounted to $1,350,000 in Year 2.The company's average collection period for Year 2 is closest to:
A)1.2 days
B)1.0 days
C)82.4 days
D)89.0 days

Free

Multiple Choice

Q 86Q 86

Pascarelli Corporation's inventory at the end of Year 2 was $122,000 and its inventory at the end of Year 1 was $150,000.Cost of goods sold amounted to $870,000 in Year 2.The company's average sale period for Year 2 is closest to:
A)230.1 days
B)51.2 days
C)57.0 days
D)32.3 days

Free

Multiple Choice

Q 87Q 87

Deflorio Corporation's inventory at the end of Year 2 was $156,000 and its inventory at the end of Year 1 was $140,000.The company's total assets at the end of Year 2 were $1,416,000 and its total assets at the end of Year 1 were $1,390,000.Sales amounted to $1,320,000 in Year 2.The company's total asset turnover for Year 2 is closest to:
A)0.94
B)1.06
C)5.38
D)0.19

Free

Multiple Choice

Q 88Q 88

Data from Estrin Corporation's most recent balance sheet and income statement appear below: The average sale period for this year is closest to:
A)101 days
B)50 days
C)108 days
D)45 days

Free

Multiple Choice

Q 89Q 89

Shipley Corporation has provided the following data from its most recent balance sheet: The debt-to-equity ratio is closest to:
A)0.29
B)3.47
C)0.22
D)0.78

Free

Multiple Choice

Q 90Q 90

Neelty Corporation has interest expense of $16,000, sales of $600,000, a tax rate of 30%, and after-tax net income of $56,000.The company's times interest earned ratio is closest to:
A)6.0
B)5.0
C)4.5
D)3.5

Free

Multiple Choice

Q 91Q 91

Falmouth Corporation's debt to equity ratio is 0.6.Current liabilities are $120,000, long term liabilities are $360,000, and working capital is $140,000.Total assets of the corporation must be:
A)$600,000
B)$1,200,000
C)$800,000
D)$1,280,000

Free

Multiple Choice

Q 92Q 92

Klein Corporation has provided the following data: The company's equity multiplier is closest to:
A)1.24
B)0.56
C)1.80
D)0.81

Free

Multiple Choice

Q 93Q 93

Last year Javer Corporation had net income of $200,000, income tax expense of $74,000, and interest expense of $20,000.The corporation's times interest earned was closest to:
A)10.0
B)11.0
C)5.3
D)14.7

Free

Multiple Choice

Q 94Q 94

The times interest earned ratio of Whitney Corporation is 3.0.The interest expense for the year is $21,000, and the corporation's tax rate is 40%.The corporation's after-tax net income must be:
A)$63,000
B)$25,200
C)$30,000
D)$42,000

Free

Multiple Choice

Q 95Q 95

A portion of Lapore Corporation's Balance Sheet appears below: The company's debt-to-equity ratio at the end of Year 2 is closest to:
A)0.60
B)0.37
C)0.39
D)0.27

Free

Multiple Choice

Q 96Q 96

Wittels Corporation has provided the following data: In Year 2, the company's net operating income was $42,571, its net income before taxes was $21,571, and its net income was $15,100.The company's equity multiplier is closest to:
A)1.14
B)0.53
C)0.88
D)1.87

Free

Multiple Choice

Q 97Q 97

Broch Corporation's income statement appears below: The company's times interest earned ratio is closest to:
A)4.87
B)1.41
C)3.16
D)2.16

Free

Multiple Choice

Q 98Q 98

Cutsinger Corporation has provided the following data from its most recent income statement: The times interest earned ratio is closest to:
A)1.83
B)0.28
C)1.28
D)0.19

Free

Multiple Choice

Q 99Q 99

Karma Corporation has total assets of $190,000 and total liabilities of $90,000.The corporation's debt-to-equity ratio is closest to:
A)0.47
B)0.90
C)0.53
D)0.32

Free

Multiple Choice

Q 100Q 100

Rough Corporation's total assets at the end of Year 2 were $1,247,000 and at the end of Year 1 were $1,270,000.The company's total liabilities at the end of Year 2 were $512,000 and at the end of Year 1 were $550,000.The company's total stockholders' equity at the end of Year 2 was $735,000 and at the end of Year 1 was $720,000.The company's equity multiplier is closest to:
A)1.73
B)1.44
C)0.69
D)0.58

Free

Multiple Choice

Q 101Q 101

Younis Corporation's income statement appears below: The company's net profit margin percentage is closest to:
A)37.1%
B)3.5%
C)2.4%
D)1.7%

Free

Multiple Choice

Q 102Q 102

Crosswhite Corporation's sales last year were $1,270,000, its gross margin was $400,000, its net operating income was $53,769, and its net income was $26,500.The company's net profit margin percentage is closest to:
A)31.5%
B)3.2%
C)4.2%
D)2.1%

Free

Multiple Choice

Q 103Q 103

Mars Corporation has provided the following data for Year 2: The company's total stockholders' equity at the end of Year 2 amounted to $1,095,000 and at the end of Year 1 to $1,060,000.The company's return on equity for Year 2 is closest to:
A)5.91%
B)7.40%
C)3.84%
D)71.20%

Free

Multiple Choice

Q 104Q 104

Sapien Corporation has provided the following data for the most recent year: The company's gross margin percentage is closest to:
A)52.3%
B)1691.2%
C)5.9%
D)34.3%

Free

Multiple Choice

Q 105Q 105

Mormino Corporation's income statement appears below: The company's gross margin percentage is closest to:
A)1888.9%
B)5.3%
C)41.1%
D)69.9%

Free

Multiple Choice

Q 106Q 106

Jester Corporation's most recent income statement appears below: The beginning balance of total assets was $360,000 and the ending balance was $320,000.The return on total assets is closest to:
A)26.5%
B)18.5%
C)22.6%
D)32.4%

Free

Multiple Choice

Q 107Q 107

For Year 2, Etzkorn Corporation's sales were $1,480,000, its gross margin was $580,000, its net operating income was $63,714, its net income before taxes was $42,714, and its net income was $29,900.The company's total stockholders' equity at the end of Year 2 amounted to $829,000 and at the end of Year 1 to $800,000.The company's return on equity for Year 2 is closest to:
A)3.67%
B)60.16%
C)5.24%
D)7.82%

Free

Multiple Choice

Q 108Q 108

Kienle Corporation's Year 2 income statement appears below: The company's total assets at the end of Year 2 amounted to $1,359,000 and at the end of Year 1 to $1,320,000.The company's return on total assets for Year 2 is closest to:
A)2.48%
B)3.14%
C)2.52%
D)3.10%

Free

Multiple Choice

Q 109Q 109

Valdovinos Corporation has provided the following data: The company's net profit margin percentage is closest to:
A)38.3%
B)3.5%
C)1.3%
D)2.0%

Free

Multiple Choice

Q 110Q 110

Braverman Corporation's net income last year was $75,000 and its interest expense was $10,000.Total assets at the beginning of the year were $650,000 and total assets at the end of the year were $610,000.The corporation's income tax rate was 30%.The corporation's return on total assets for the year was closest to:
A)13.5%
B)12.4%
C)13.0%
D)11.9%

Free

Multiple Choice

Q 111Q 111

Grosvenor Corporation's most recent income statement appears below: The gross margin percentage is closest to:
A)80.9%
B)44.7%
C)376.0%
D)26.6%

Free

Multiple Choice

Q 112Q 112

Fongeallaz Corporation's income statement for Year 2 appears below: The company's total stockholders' equity at the end of Year 2 amounted to $841,000 and at the end of Year 1 to $810,000.The company's return on equity for Year 2 is closest to:
A)64.40%
B)8.93%
C)6.75%
D)4.72%

Free

Multiple Choice

Q 113Q 113

Weightman Corporation's net operating income in Year 2 was $76,385, net income before taxes was $55,385, and the net income was $36,000.Total common stock was $200,000 at the end of both Year 2 and Year 1.The par value of common stock is $4 per share.The company's total stockholders' equity at the end of Year 2 amounted to $983,000 and at the end of Year 1 to $950,000.The market price per share at the end of Year 2 was $7.92.The company's price-earnings ratio for Year 2 is closest to:
A)7.14
B)0.58
C)5.18
D)11.00

Free

Multiple Choice

Q 114Q 114

The following information relates to Conejo Corporation for last year: What is Conejo's price-earnings ratio for last year?
A)1.6
B)2.4
C)8.0
D)2.0

Free

Multiple Choice

Q 115Q 115

Goldsmith Corporation has provided the following data: The company's net income in Year 2 was $24,400.The company's book value per share at the end of Year 2 is closest to:
A)$8.32 per share
B)$4.66 per share
C)$14.34 per share
D)$0.27 per share

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Multiple Choice

Q 116Q 116

Linzey Corporation has provided the following data: The company's net income in Year 2 was $33,000.The company's book value per share at the end of Year 2 is closest to:
A)$22.45 per share
B)$12.45 per share
C)$0.55 per share
D)$15.45 per share

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Multiple Choice

Q 117Q 117

Tempel Corporation has provided the following data: The market price of common stock at the end of Year 2 was $2.77 per share.The company's price-earnings ratio for Year 2 is closest to:
A)9.23
B)0.35
C)4.54
D)13.40

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Q 118Q 118

Keyton Corporation's net operating income in Year 2 was $43,714, net income before taxes was $30,714, and the net income was $21,500.Total common stock was $200,000 at the end of both Year 2 and Year 1.The par value of common stock is $4 per share.The company's total stockholders' equity at the end of Year 2 amounted to $1,148,000 and at the end of Year 1 to $1,130,000.The company declared and paid $3,500 dividends on common stock in Year 2.The market price per share was $8.43 at the end of Year 2.The company's dividend payout ratio for Year 2 is closest to:
A)0.8%
B)1.8%
C)16.3%
D)11.4%

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Q 119Q 119

Rawdon Corporation's net operating income in Year 2 was $52,429, net income before taxes was $34,429, and the net income was $24,100.Total common stock was $360,000 at the end of both Year 2 and Year 1.The par value of common stock is $4 per share.The company's total stockholders' equity at the end of Year 2 amounted to $976,000 and at the end of Year 1 to $960,000.The company's earnings per share for Year 2 is closest to:
A)$0.58 per share
B)$0.38 per share
C)$0.27 per share
D)$5.84 per share

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Q 120Q 120

Leflore Corporation has provided the following data: Dividends on common stock during Year 2 totaled $6,000.The market price of common stock at the end of Year 2 was $1.38 per share.The company's dividend yield ratio for Year 2 is closest to:
A)4.3%
B)1.2%
C)35.0%
D)50.0%

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Q 121Q 121

Cameron Corporation had 50,000 shares of common stock issued and outstanding that it originally issued for $40 per share.The following information pertains to these shares: The total dividend on common stock for the year was $400,000.Cameron Corporation's dividend yield ratio for the year was:
A)20.00%
B)11.43%
C)9.41%
D)8.89%

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Q 122Q 122

Hernande Corporation has provided the following data: The company's earnings per share for Year 2 is closest to:
A)$4.25 per share
B)$0.43 per share
C)$0.61 per share
D)$0.75 per share

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Multiple Choice

Q 123Q 123

Delfavero Corporation has provided the following data: The company's earnings per share for Year 2 is closest to:
A)$10.33 per share
B)$0.52 per share
C)$0.34 per share
D)$0.79 per share

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Multiple Choice

Q 124Q 124

Groeneweg Corporation has provided the following data: Dividends on common stock during Year 2 totaled $4,500.The market price of common stock at the end of Year 2 was $9.45 per share.The company's dividend payout ratio for Year 2 is closest to:
A)8.7%
B)13.4%
C)4.5%
D)1.0%

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Multiple Choice

Q 125Q 125

Spincic Corporation has provided the following data: The market price of common stock at the end of Year 2 was $4.13 per share.The company's price-earnings ratio for Year 2 is closest to:
A)0.52
B)8.10
C)6.16
D)12.52

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Q 126Q 126

Kovack Corporation's net operating income in Year 2 was $66,571, net income before taxes was $46,571, and the net income was $32,600.Total common stock was $120,000 at the end of both Year 2 and Year 1.The par value of common stock is $2 per share.The company's total stockholders' equity at the end of Year 2 amounted to $962,000 and at the end of Year 1 to $930,000.The company declared and paid $600 dividends on common stock.The market price per share was $4.37.The company's dividend yield ratio for Year 2 is closest to:
A)0.2%
B)1.3%
C)1.9%
D)0.5%

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Q 127Q 127

Uhri Corporation has provided the following data: Dividends on common stock during Year 2 totaled $4,000.The market price of common stock at the end of Year 2 was $6.08 per share.The company's dividend payout ratio for Year 2 is closest to:
A)7.8%
B)1.3%
C)11.1%
D)0.8%

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Q 128Q 128

Sabino Corporation's total common stock was $500,000 at the end of both Year 2 and Year 1.The par value of common stock is $5 per share.The company's total stockholders' equity at the end of Year 2 amounted to $1,125,000 and at the end of Year 1 to $1,090,000.The company's total liabilities and stockholders' equity at the end of Year 2 amounted to $1,581,000 and at the end of Year 1 to $1,540,000.The company's retained earnings at the end of Year 2 amounted to $545,000 and at the end of Year 1 to $510,000.The company's net income in Year 2 was $39,000.The company's book value per share at the end of Year 2 is closest to:
A)$0.39 per share
B)$15.81 per share
C)$11.25 per share
D)$5.45 per share

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Q 132Q 132

The company's working capital at the end of Year 2 is:
A)$732,000
B)$831,000
C)$289,000
D)$590,000

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Q 133Q 133

The company's current ratio at the end of Year 2 is closest to:
A)0.83
B)1.96
C)0.45
D)0.37

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Multiple Choice

Q 134Q 134

The company's acid-test (quick)ratio at the end of Year 2 is closest to:
A)1.96
B)1.41
C)1.20
D)1.48

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Q 140Q 140

The acid-test (quick)ratio at the end of Year 2 is closest to:
A)0.72
B)0.83
C)0.59
D)1.25

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Q 143Q 143

The working capital at the end of Year 2 is:
A)$260 thousand
B)$680 thousand
C)$700 thousand
D)$540 thousand

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Q 145Q 145

The acid-test (quick)ratio at the end of Year 2 is closest to:
A)0.96
B)1.36
C)1.50
D)1.93

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Q 147Q 147

The average collection period for Year 2 is closest to:
A)64.0 days
B)0.9 days
C)61.3 days
D)1.1 days

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Q 149Q 149

The average sale period for Year 2 is closest to:
A)58.5 days
B)33.4 days
C)217.3 days
D)56.2 days

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Q 152Q 152

The acid-test (quick)ratio at the end of Year 2 is closest to:
A)2.17
B)1.78
C)1.74
D)1.06

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Q 153Q 153

The average collection period for Year 2 is closest to:
A)1.1 days
B)0.9 days
C)84.3 days
D)87.3 days

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Q 154Q 154

The average sale period for Year 2 is closest to:
A)28.1 days
B)45.0 days
C)50.0 days
D)227.7 days

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Q 155Q 155

Maraby Corporation's working capital (in thousands of dollars)at the end of Year 2 was closest to:
A)$260
B)$620
C)$360
D)$990

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Q 156Q 156

Maraby Corporation's current ratio at the end of Year 2 was closest to:
A)1.34
B)1.72
C)0.60
D)0.44

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Q 157Q 157

Maraby Corporation's acid-test (quick)ratio at the end of Year 2 was closest to:
A)0.51
B)0.47
C)1.14
D)1.95

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Q 158Q 158

Maraby Corporation's accounts receivable turnover for Year 2 was closest to:
A)13.5
B)7.8
C)11.2
D)9.4

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Q 159Q 159

Maraby Corporation's average collection period for Year 2 was closest to:
A)38.6 days
B)46.6 days
C)32.6 days
D)27.0 days

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Q 160Q 160

Maraby Corporation's inventory turnover for Year 2 was closest to:
A)11.2
B)7.8
C)9.4
D)13.5

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Q 161Q 161

Maraby Corporation's average sale period for Year 2 was closest to:
A)38.8 days
B)32.6 days
C)46.6 days
D)27.0 days

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Q 164Q 164

The acid-test (quick)ratio at the end of Year 2 is closest to:
A)1.67
B)1.00
C)0.97
D)1.25

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Q 166Q 166

The average collection period for Year 2 is closest to:
A)55.1 days
B)0.9 days
C)1.1 days
D)57.8 days

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Q 168Q 168

The average sale period for Year 2 is closest to:
A)63.0 days
B)89.2 days
C)236.3 days
D)97.3 days

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Q 169Q 169

The company's accounts receivable turnover for Year 2 is closest to:
A)1.06
B)5.06
C)5.21
D)0.94

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Q 170Q 170

The company's average collection period for Year 2 is closest to:
A)70.1 days
B)1.1 days
C)72.1 days
D)1.0 days

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Q 172Q 172

The company's average sale period for Year 2 is closest to:
A)91.9 days
B)48.9 days
C)90.1 days
D)198.1 days

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Q 173Q 173

The company's operating cycle for Year 2 is closest to:
A)95.9 days
B)75.3 days
C)162.0 days
D)9.2 days

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Q 175Q 175

The company's accounts receivable turnover for Year 2 is closest to:
A)0.97
B)10.38
C)1.03
D)10.22

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Q 176Q 176

The company's average collection period for Year 2 is closest to:
A)35.7 days
B)1.1 days
C)1.0 days
D)35.2 days

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Q 178Q 178

The company's average sale period for Year 2 is closest to:
A)226.5 days
B)60.1 days
C)40.0 days
D)64.4 days

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Q 179Q 179

The company's operating cycle for Year 2 is closest to:
A)66.2 days
B)16.5 days
C)95.3 days
D)45.6 days

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Q 181Q 181

The company's accounts receivable turnover for Year 2 is closest to:
A)12.95
B)1.02
C)0.98
D)13.06

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Q 182Q 182

The company's average collection period for Year 2 is closest to:
A)1.1 days
B)28.2 days
C)1.0 days
D)27.9 days

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Q 184Q 184

The company's average sale period for Year 2 is closest to:
A)65.6 days
B)226.6 days
C)43.8 days
D)70.6 days

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Q 185Q 185

The company's operating cycle for Year 2 is closest to:
A)71.2 days
B)93.5 days
C)18.6 days
D)41.0 days

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Q 187Q 187

The company's operating cycle for Year 2 is closest to:
A)70.8 days
B)10.0 days
C)87.7 days
D)148.5 days

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Q 189Q 189

The company's equity multiplier at the end of Year 2 is closest to:
A)0.28
B)1.28
C)3.53
D)0.78

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Q 190Q 190

The company's operating cycle for Year 2 is closest to:
A)10.4 days
B)79.5 days
C)141.3 days
D)72.2 days

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Q 192Q 192

The company's equity multiplier at the end of Year 2 is closest to:
A)0.70
B)1.43
C)2.34
D)0.43

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Q 193Q 193

Narstad Corporation's times interest earned ratio for Year 2 was closest to:
A)11.0
B)10.0
C)18.0
D)7.0

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Q 194Q 194

Narstad Corporation's debt-to-equity ratio at the end of Year 2 was closest to:
A)0.50
B)0.36
C)0.19
D)0.17

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Q 195Q 195

The company's times interest earned ratio for Year 2 is closest to:
A)1.43
B)3.47
C)2.43
D)1.00

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Q 196Q 196

The company's debt-to-equity ratio at the end of Year 2 is closest to:
A)0.30
B)0.36
C)0.41
D)0.60

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Q 197Q 197

The company's equity multiplier at the end of Year 2 is closest to:
A)1.60
B)1.68
C)0.63
D)0.60

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Q 199Q 199

The company's debt-to-equity ratio at the end of Year 2 is closest to:
A)0.29
B)0.38
C)0.23
D)0.64

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Q 200Q 200

The company's equity multiplier at the end of Year 2 is closest to:
A)0.64
B)1.65
C)1.57
D)0.61

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Q 201Q 201

The company's times interest earned ratio for Year 2 is closest to:
A)7.71
B)2.61
C)5.01
D)4.01

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Q 202Q 202

The company's debt-to-equity ratio at the end of Year 2 is closest to:
A)0.22
B)0.27
C)0.45
D)0.19

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Q 203Q 203

The company's equity multiplier at the end of Year 2 is closest to:
A)0.69
B)2.23
C)0.45
D)1.45

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Q 208Q 208

The company's net profit margin percentage for Year 2 is closest to:
A)37.3%
B)2.6%
C)1.4%
D)0.9%

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Q 209Q 209

The company's gross margin percentage for Year 2 is closest to:
A)59.6%
B)2.5%
C)37.3%
D)4076.9%

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Q 210Q 210

The company's return on total assets for Year 2 is closest to:
A)0.99%
B)1.00%
C)1.85%
D)1.83%

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Q 212Q 212

The company's net profit margin percentage for Year 2 is closest to:
A)1.9%
B)2.7%
C)3.3%
D)38.1%

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Q 213Q 213

The company's gross margin percentage for Year 2 is closest to:
A)4.9%
B)61.4%
C)38.1%
D)2031.9%

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Q 214Q 214

The company's return on total assets for Year 2 is closest to:
A)2.09%
B)2.08%
C)1.67%
D)1.66%

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Q 216Q 216

The company's net profit margin percentage for Year 2 is closest to:
A)3.9%
B)38.5%
C)2.5%
D)1.6%

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Q 217Q 217

The company's gross margin percentage for Year 2 is closest to:
A)62.5%
B)4.2%
C)38.5%
D)2381.0%

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Q 218Q 218

The company's return on total assets for Year 2 is closest to:
A)1.38%
B)2.18%
C)1.37%
D)2.19%

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Q 220Q 220

The company's return on total assets for Year 2 is closest to:
A)1.77%
B)2.46%
C)1.80%
D)2.42%

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Q 222Q 222

The company's earnings per share for Year 2 is closest to:
A)$6.33 per share
B)$0.29 per share
C)$0.45 per share
D)$0.62 per share

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Q 223Q 223

The company's price-earnings ratio for Year 2 is closest to:
A)0.76
B)10.64
C)16.52
D)7.73

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Q 224Q 224

The company's return on total assets for Year 2 is closest to:
A)2.75%
B)1.64%
C)1.65%
D)2.76%

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Q 226Q 226

The company's earnings per share for Year 2 is closest to:
A)$0.31 per share
B)$0.47 per share
C)$0.79 per share
D)$3.88 per share

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Q 227Q 227

The company's price-earnings ratio for Year 2 is closest to:
A)19.00
B)12.53
C)7.46
D)1.52

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Q 228Q 228

The company's earnings per share is closest to:
A)$7.37 per share
B)$0.45 per share
C)$0.30 per share
D)$0.19 per share

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Q 232Q 232

The company's book value per share at the end of the year is closest to:
A)$11.37 per share
B)$7.37 per share
C)$0.19 per share
D)$16.81 per share

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Q 233Q 233

The company's earnings per share for Year 2 is closest to:
A)$8.18 per share
B)$0.38 per share
C)$0.54 per share
D)$0.68 per share

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Q 235Q 235

The company's dividend payout ratio for Year 2 is closest to:
A)1.6%
B)21.1%
C)2.6%
D)14.7%

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Q 236Q 236

The company's dividend yield ratio for Year 2 is closest to:
A)21.1%
B)2.6%
C)1.6%
D)14.7%

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Q 237Q 237

The company's book value per share at the end of Year 2 is closest to:
A)$0.38 per share
B)$8.18 per share
C)$18.08 per share
D)$13.93 per share

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Q 238Q 238

The company's earnings per share for Year 2 is closest to:
A)$0.53 per share
B)$11.54 per share
C)$0.19 per share
D)$0.27 per share

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Q 240Q 240

The company's dividend payout ratio for Year 2 is closest to:
A)26.3%
B)2.5%
C)18.4%
D)1.0%

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Q 241Q 241

The company's dividend yield ratio for Year 2 is closest to:
A)1.0%
B)18.4%
C)26.3%
D)2.5%

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Q 242Q 242

The company's book value per share at the end of Year 2 is closest to:
A)$17.94 per share
B)$28.26 per share
C)$0.19 per share
D)$11.54 per share

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Q 243Q 243

Rubendall Corporation's total current assets are $310,000, its noncurrent assets are $630,000, its total current liabilities are $250,000, its long-term liabilities are $300,000, and its stockholders' equity is $390,000.
Required:
Compute the company's current ratio.Show your work!

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Essay

Q 244Q 244

Gremel Corporation has provided the following financial data: Required:
a.What is the company's working capital?
b.What is the company's current ratio?
c.What is the company's acid-test (quick)ratio?

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Essay

Q 245Q 245

Steinkraus Corporation has provided the following data: Required:
Compute the accounts receivable turnover for this year.Show your work!

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Essay

Q 246Q 246

Arkin Corporation's total current assets are $290,000, its noncurrent assets are $520,000, its total current liabilities are $210,000, its long-term liabilities are $420,000, and its stockholders' equity is $180,000.
Required:
Compute the company's working capital.Show your work!

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Essay

Q 247Q 247

Wowk Corporation has provided the following financial data: Required:
a.What is the company's working capital?
b.What is the company's current ratio?
c.What is the company's acid-test (quick)ratio?

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Essay

Q 248Q 248

Data from Yochem Corporation's most recent balance sheet appear below: Required:
Compute the company's acid-test (quick)ratio.Show your work!

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Essay

Q 249Q 249

Excerpts from Candle Corporation's most recent balance sheet (in thousands of dollars)appear below: Sales on account during the year totaled $1,200 thousand.Cost of goods sold was $800 thousand.
Required:
Compute the following for Year 2:
a.Working capital.
b.Current ratio.
c.Acid-test (quick)ratio.
d.Accounts receivable turnover.
e.Average collection period.
f.Inventory turnover.
g.Average sale period.

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Essay

Q 250Q 250

Wegener Corporation's most recent balance sheet and income statement appear below: Required:
Compute the following for Year 2:
a.Working capital.
b.Current ratio.
c.Acid-test (quick)ratio.
d.Accounts receivable turnover.
e.Average collection period.
f.Inventory turnover.
g.Average sale period.

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Essay

Q 251Q 251

Abdool Corporation has provided the following financial data: Required:
a.What is the company's working capital at the end of Year 2?
b.What is the company's current ratio at the end of Year 2?
c.What is the company's acid-test (quick)ratio at the end of Year 2?
d.What is the company's accounts receivable turnover for Year 2?
e.What is the company's average collection period for Year 2?
f.What is the company's inventory turnover for Year 2?
g.What is the company's average sale period for Year 2?
h.What is the company's operating cycle for Year 2?
i.What is the company's total asset turnover for Year 2?

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Essay

Q 252Q 252

Financial statements for Rardin Corporation appear below: Required:
Compute the following for Year 2:
a.Current ratio.
b.Acid-test (quick)ratio.
c.Average collection period.
d.Inventory turnover.
e.Times interest earned ratio.
f.Debt-to-equity ratio.

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Essay

Q 253Q 253

Mondok Corporation has provided the following financial data: Required:
a.What is the company's working capital at the end of Year 2?
b.What is the company's current ratio at the end of Year 2?
c.What is the company's acid-test (quick)ratio at the end of Year 2?
d.What is the company's accounts receivable turnover for Year 2?
e.What is the company's average collection period for Year 2?
f.What is the company's inventory turnover for Year 2?
g.What is the company's average sale period for Year 2?
h.What is the company's operating cycle for Year 2?
i.What is the company's total asset turnover for Year 2?
j.What is the company's times interest earned ratio for Year 2?
k.What is the company's debt-to-equity ratio at the end of Year 2?
l.What is the company's equity multiplier at the end of Year 2?

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Essay

Q 254Q 254

Two-Rivers Inc.(TRI)manufactures a variety of consumer products.The company's founders have run the company for thirty years and are now interested in retiring.Consequently, they are seeking a purchaser, and a group of investors is looking into the acquisition of TRI.To evaluate its financial stability, TRI was requested to provide its latest financial statements and selected financial ratios.Summary information provided by TRI is presented below. Required:
a.Calculate the select financial ratios for the fiscal year Year 2.
b.Interpret what each of these financial ratios means in terms of TRI's financial stability and operating efficiency.

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Essay

Q 255Q 255

Financial statements for Praeger Corporation appear below: Dividends during Year 2 totaled $45 thousand.The market price of a share of common stock on December 31, Year 2 was $30.
Required:
Compute the following for Year 2:
a.Return on total assets.
b.Working capital.
c.Current ratio.
d.Acid-test (quick)ratio.
e.Accounts receivable turnover.
f.Average collection period.
g.Inventory turnover.
h.Average sale period.
i.Times interest earned ratio.
j.Debt-to-equity ratio.

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Essay

Q 256Q 256

Kaloi Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $3,500.The market price of common stock at the end of Year 2 was $7.46 per share.
Required:
a.What is the company's working capital at the end of Year 2?
b.What is the company's current ratio at the end of Year 2?
c.What is the company's acid-test (quick)ratio at the end of Year 2?
d.What is the company's accounts receivable turnover for Year 2?
e.What is the company's average collection period for Year 2?
f.What is the company's inventory turnover for Year 2?
g.What is the company's average sale period for Year 2?
h.What is the company's operating cycle for Year 2?
i.What is the company's total asset turnover for Year 2?
j.What is the company's times interest earned ratio for Year 2?
k.What is the company's debt-to-equity ratio at the end of Year 2?
l.What is the company's equity multiplier at the end of Year 2?
m.What is the company's net profit margin percentage for Year 2?
n.What is the company's gross margin percentage for Year 2?
o.What is the company's return on total assets for Year 2?
p.What is the company's return on equity for Year 2?

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Essay

Q 257Q 257

Hyrkas Corporation's most recent balance sheet and income statement appear below: Dividends on common stock during Year 2 totaled $30 thousand.The market price of common stock at the end of Year 2 was $6.90 per share.
Required:
Compute the following for Year 2:
a.Gross margin percentage.
b.Earnings per share.
c.Price-earnings ratio.
d.Dividend payout ratio.
e.Dividend yield ratio.
f.Return on total assets.
g.Return on equity.
h.Book value per share.
i.Working capital.
j.Current ratio.
k.Acid-test (quick)ratio.
l.Accounts receivable turnover.
m.Average collection period.
n.Inventory turnover.
o.Average sale period.
p.Times interest earned ratio.
q.Debt-to-equity ratio.

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Essay

Q 258Q 258

Kisselburg Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $4,000.The market price of common stock at the end of Year 2 was $5.75 per share.
Required:
a.What is the company's working capital at the end of Year 2?
b.What is the company's current ratio at the end of Year 2?
c.What is the company's acid-test (quick)ratio at the end of Year 2?
d.What is the company's accounts receivable turnover for Year 2?
e.What is the company's average collection period for Year 2?
f.What is the company's inventory turnover for Year 2?
g.What is the company's average sale period for Year 2?
h.What is the company's operating cycle for Year 2?
i.What is the company's total asset turnover for Year 2?
j.What is the company's times interest earned ratio for Year 2?
k.What is the company's debt-to-equity ratio at the end of Year 2?
l.What is the company's equity multiplier at the end of Year 2?
m.What is the company's net profit margin percentage for Year 2?
n.What is the company's gross margin percentage for Year 2?
o.What is the company's return on total assets for Year 2?
p.What is the company's return on equity for Year 2?
q.What is the company's earnings per share for Year 2?
r.What is the company's price-earnings ratio for Year 2?
s.What is the company's dividend payout ratio for Year 2?
t.What is the company's dividend yield ratio for Year 2?
u.What is the company's book value per share at the end of Year 2?

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Essay

Q 259Q 259

M.K.Berry is the managing director of CE Ltd.a small, family-owned company which manufactures cutlery.His company belongs to a trade association which publishes a monthly magazine.The latest issue of the magazine contains a very brief article based on the analysis of the accounting statements published by the 40 companies which manufacture this type of product.The article contains the following table: CE Ltd's latest financial statements are as follows: The country in which the company operates has no corporate income tax.No dividends were paid during the year.All sales are on account. Required:
a.Calculate each of the ratios listed in the magazine article for this year for CE, and comment briefly on CE Ltd's performance in comparison to the industrial averages.
b.Explain why it could be misleading to compare CE Ltd's ratios with those taken from the article.

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Essay

Q 260Q 260

Neiger Corporation has provided the following financial data: Required:
a.What is the company's working capital at the end of Year 2?
b.What is the company's current ratio at the end of Year 2?
c.What is the company's acid-test (quick)ratio at the end of Year 2?
d.What is the company's times interest earned ratio for Year 2?
e.What is the company's debt-to-equity ratio at the end of Year 2?
f.What is the company's equity multiplier at the end of Year 2?

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Essay

Q 261Q 261

Walker Corporation has provided the following financial data: The company's net operating income for Year 2 was $63,615 and its interest expense was $15,000.
Required:
a.What is the company's working capital at the end of Year 2?
b.What is the company's current ratio at the end of Year 2?
c.What is the company's acid-test (quick)ratio at the end of Year 2?
d.What is the company's times interest earned ratio for Year 2?
e.What is the company's debt-to-equity ratio at the end of Year 2?
f.What is the company's equity multiplier at the end of Year 2?

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Essay

Q 262Q 262

Data from Ben Corporation's most recent balance sheet and income statement appear below: Required:
Compute the average sale period for this year:

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Essay

Q 263Q 263

Dilisio Corporation has provided the following data: Required:
Compute the inventory turnover for this year:

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Essay

Q 264Q 264

Hagle Corporation has provided the following financial data: Required:
a.What is the company's accounts receivable turnover for Year 2?
b.What is the company's average collection period for Year 2?
c.What is the company's inventory turnover for Year 2?
d.What is the company's average sale period for Year 2?
e.What is the company's operating cycle for Year 2?
f.What is the company's total asset turnover for Year 2?

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Essay

Q 265Q 265

Data from Dalpiaz Corporation's most recent balance sheet and income statement appear below: Required:
Compute the average collection period for this year:

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Essay

Q 266Q 266

Kestner Corporation has provided the following financial data: Required:
a.What is the company's accounts receivable turnover for Year 2?
b.What is the company's average collection period for Year 2?
c.What is the company's inventory turnover for Year 2?
d.What is the company's average sale period for Year 2?
e.What is the company's operating cycle for Year 2?
f.What is the company's total asset turnover for Year 2?

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Essay

Q 267Q 267

Wyand Corporation's net operating income last year was $212,000; its interest expense was $26,000; its total stockholders' equity was $1,000,000; and its total liabilities were $370,000.
Required:
Compute the following for Year 2:
a.Times interest earned ratio.
b.Debt-to-equity ratio.

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Essay

Q 268Q 268

Fraction Corporation has provided the following financial data: Required:
a.What is the company's times interest earned ratio for Year 2?
b.What is the company's debt-to-equity ratio at the end of Year 2?
c.What is the company's equity multiplier at the end of Year 2?

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Essay

Q 269Q 269

Babbitt Corporation has provided the following data from its most recent income statement: Required:
Compute the times interest earned ratio.Show your work!

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Essay

Q 270Q 270

Gambino Corporation has provided the following financial data: Required:
a.What is the company's times interest earned ratio for Year 2?
b.What is the company's debt-to-equity ratio at the end of Year 2?
c.What is the company's equity multiplier at the end of Year 2?

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Essay

Q 271Q 271

Sidell Corporation's most recent balance sheet and income statement appear below: Required:
Compute the following for Year 2:
a.Times interest earned ratio.
b.Debt-to-equity ratio.

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Essay

Q 272Q 272

Lindboe Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $4,800.The market price of common stock at the end of Year 2 was $5.46 per share.
Required:
a.What is the company's times interest earned ratio for Year 2?
b.What is the company's debt-to-equity ratio at the end of Year 2?
c.What is the company's equity multiplier at the end of Year 2?
d.What is the company's net profit margin percentage for Year 2?
e.What is the company's gross margin percentage for Year 2?
f.What is the company's return on total assets for Year 2?
g.What is the company's return on equity for Year 2?

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Essay

Q 273Q 273

Schepp Corporation has provided the following financial data: Required:
a.What is the company's times interest earned ratio for Year 2?
b.What is the company's debt-to-equity ratio at the end of Year 2?
c.What is the company's equity multiplier at the end of Year 2?
d.What is the company's net profit margin percentage for Year 2?
e.What is the company's gross margin percentage for Year 2?
f.What is the company's return on total assets for Year 2?
g.What is the company's return on equity for Year 2?

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Essay

Q 274Q 274

Brill Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $2,100.The market price of common stock at the end of Year 2 was $2.32 per share.
Required:
a.What is the company's times interest earned ratio for Year 2?
b.What is the company's debt-to-equity ratio at the end of Year 2?
c.What is the company's equity multiplier at the end of Year 2?
d.What is the company's net profit margin percentage for Year 2?
e.What is the company's gross margin percentage for Year 2?
f.What is the company's return on total assets for Year 2?
g.What is the company's return on equity for Year 2?
h.What is the company's earnings per share for Year 2?
i.What is the company's price-earnings ratio for Year 2?
j.What is the company's dividend payout ratio for Year 2?
k.What is the company's dividend yield ratio for Year 2?
l.What is the company's book value per share at the end of Year 2?

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Essay

Q 275Q 275

Jaquez Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $10,000.The market price of common stock at the end of Year 2 was $5.45 per share.
Required:
a.What is the company's times interest earned ratio for Year 2?
b.What is the company's debt-to-equity ratio at the end of Year 2?
c.What is the company's equity multiplier at the end of Year 2?
d.What is the company's net profit margin percentage for Year 2?
e.What is the company's gross margin percentage for Year 2?
f.What is the company's return on total assets for Year 2?
g.What is the company's return on equity for Year 2?
h.What is the company's earnings per share for Year 2?
i.What is the company's price-earnings ratio for Year 2?
j.What is the company's dividend payout ratio for Year 2?
k.What is the company's dividend yield ratio for Year 2?
l.What is the company's book value per share at the end of Year 2?

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Essay

Q 276Q 276

Medina Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $2,000.The market price of common stock at the end of Year 2 was $1.49 per share.
Required:
a.What is the company's times interest earned ratio for Year 2?
b.What is the company's debt-to-equity ratio at the end of Year 2?
c.What is the company's equity multiplier at the end of Year 2?
d.What is the company's net profit margin percentage for Year 2?
e.What is the company's gross margin percentage for Year 2?
f.What is the company's return on total assets for Year 2?
g.What is the company's return on equity for Year 2?
h.What is the company's earnings per share for Year 2?
i.What is the company's price-earnings ratio for Year 2?
j.What is the company's dividend payout ratio for Year 2?
k.What is the company's dividend yield ratio for Year 2?
l.What is the company's book value per share at the end of Year 2?

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Essay

Q 277Q 277

Tobia Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $6,300.The market price of common stock at the end of Year 2 was $1.78 per share.
Required:
a.What is the company's times interest earned ratio for Year 2?
b.What is the company's debt-to-equity ratio at the end of Year 2?
c.What is the company's equity multiplier at the end of Year 2?
d.What is the company's earnings per share for Year 2?
e.What is the company's price-earnings ratio for Year 2?
f.What is the company's dividend payout ratio for Year 2?
g.What is the company's dividend yield ratio for Year 2?
h.What is the company's book value per share at the end of Year 2?

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Essay

Q 278Q 278

Vogelsberg Corporation has provided the following financial data: The company's net operating income in Year 2 was $62,308; its interest expense was $12,000; and its net income was $32,700.Dividends on common stock during Year 2 totaled $2,700.The market price of common stock at the end of Year 2 was $6.37 per share.
Required:
a.What is the company's times interest earned ratio for Year 2?
b.What is the company's debt-to-equity ratio at the end of Year 2?
c.What is the company's equity multiplier at the end of Year 2?
d.What is the company's earnings per share for Year 2?
e.What is the company's price-earnings ratio for Year 2?
f.What is the company's dividend payout ratio for Year 2?
g.What is the company's dividend yield ratio for Year 2?
h.What is the company's book value per share at the end of Year 2?

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Essay

Q 279Q 279

Remley Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $3,000.The market price of common stock at the end of Year 2 was $2.70 per share.
Required:
a.What is the company's times interest earned ratio for Year 2?
b.What is the company's debt-to-equity ratio at the end of Year 2?
c.What is the company's equity multiplier at the end of Year 2?
d.What is the company's earnings per share for Year 2?
e.What is the company's price-earnings ratio for Year 2?
f.What is the company's dividend payout ratio for Year 2?
g.What is the company's dividend yield ratio for Year 2?
h.What is the company's book value per share at the end of Year 2?

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Q 280Q 280

Pribyl Corporation has provided the following financial data: Required:
a.What is the company's net profit margin percentage for Year 2?
b.What is the company's gross margin percentage for Year 2?
c.What is the company's return on total assets for Year 2?
d.What is the company's return on equity for Year 2?

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Essay

Q 281Q 281

Perrett Corporation has provided the following financial data: Required:
a.What is the company's net profit margin percentage for Year 2?
b.What is the company's gross margin percentage for Year 2?
c.What is the company's return on total assets for Year 2?
d.What is the company's return on equity for Year 2?

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Essay

Q 282Q 282

Jepson Corporation's most recent income statement appears below: Required:
Compute the gross margin percentage.

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Q 283Q 283

Gehlhausen Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $5,600.The market price of common stock at the end of Year 2 was $5.60 per share.
Required:
a.What is the company's net profit margin percentage for Year 2?
b.What is the company's gross margin percentage for Year 2?
c.What is the company's return on total assets for Year 2?
d.What is the company's return on equity for Year 2?

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Essay

Q 284Q 284

Degollado Corporation's most recent income statement appears below: The beginning balance of total assets was $200,000 and the ending balance was $220,000.
Required:
Compute the return on total assets.Show your work!

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Essay

Q 285Q 285

Marovich Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $4,000.The market price of common stock at the end of Year 2 was $6.41 per share.
Required:
a.What is the company's net profit margin percentage for Year 2?
b.What is the company's gross margin percentage for Year 2?
c.What is the company's return on total assets for Year 2?
d.What is the company's return on equity for Year 2?
e.What is the company's earnings per share for Year 2?
f.What is the company's price-earnings ratio for Year 2?
g.What is the company's dividend payout ratio for Year 2?
h.What is the company's dividend yield ratio for Year 2?
i.What is the company's book value per share at the end of Year 2?

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Essay

Q 286Q 286

Straton Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $2,100.The market price of common stock at the end of Year 2 was $5.56 per share.
Required:
a.What is the company's net profit margin percentage for Year 2?
b.What is the company's gross margin percentage for Year 2?
c.What is the company's return on total assets for Year 2?
d.What is the company's return on equity for Year 2?
e.What is the company's earnings per share for Year 2?
f.What is the company's price-earnings ratio for Year 2?
g.What is the company's dividend payout ratio for Year 2?
h.What is the company's dividend yield ratio for Year 2?
i.What is the company's book value per share at the end of Year 2?

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Essay

Q 287Q 287

Moselle Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $4,200.The market price of common stock at the end of Year 2 was $9.72 per share.
Required:
a.What is the company's earnings per share for Year 2?
b.What is the company's price-earnings ratio for Year 2?
c.What is the company's dividend payout ratio for Year 2?
d.What is the company's dividend yield ratio for Year 2?
e.What is the company's book value per share at the end of Year 2?

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Essay

Q 288Q 288

Mihok Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $5,000.The market price of common stock at the end of Year 2 was $0.97 per share.
Required:
a.What is the company's earnings per share for Year 2?
b.What is the company's price-earnings ratio for Year 2?
c.What is the company's dividend payout ratio for Year 2?
d.What is the company's dividend yield ratio for Year 2?
e.What is the company's book value per share at the end of Year 2?

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Essay

Q 289Q 289

Sehrt Corporation has provided the following financial data: The company's net income for Year 2 was $44,000.Dividends on common stock during Year 2 totaled $11,000.The market price of common stock at the end of Year 2 was $6.29 per share.
Required:
a.What is the company's earnings per share for Year 2?
b.What is the company's price-earnings ratio for Year 2?
c.What is the company's dividend payout ratio for Year 2?
d.What is the company's dividend yield ratio for Year 2?
e.What is the company's book value per share at the end of Year 2?

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