Question 1

Refer to the following selected financial information from Shakley's Incorporated. Compute the company's times interest earned for Year 2. 
A)6.9.
B)4.8.
C)5.8.
D)14.0.
E)7.9.

Accepted Answer

The answer of Refer to the following selected financial information...

Question 2

Refer to the following selected financial information from Shakley's Incorporated. Compute the company's debt-to-equity ratio for Year 2. 
A)1.75.
B)2.34.
C)0.75.
D)1.34.
E)2.63.

Accepted Answer

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Question 3

Washburn Company reported sales of $1,722,000 for Year 1 and $1,831,000 for Year 2. Using Year 1 as the base year, what was the percentage change for sales from Year 1 to Year 2?
A)6.33% decrease.
B)5.95% decrease.
C)6.33% increase.
D)5.95% increase.
E)6.17% increasE.(1,831,000 - 1,722,000)/1,722,000 = 6.33% increase

Accepted Answer

The percentage change is calculated by taking the difference between the sales of Year 1 and Year 2, dividing it by the sales of Year 1, and then multiplying by 100. 
[(Year 2 sales - Year 1 sales)/Year 1 sales] x 100 = [(1,831,000 - 1,722,000)/1,722,000] x 100 = 6.33% increase. Therefore, the correct answer is C, which indicates a 6.33% increase in sales from Year 1 to Year 2.

Question 4

Refer to the following selected financial information from Marston Company. Compute the company's days' sales uncollected for Year 2. 
A)43.9.
B)43.7.
C)46.2.
D)85.4.
E)42.7.

Accepted Answer

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Question 5

Refer to the following selected financial information from Dodge Company. Compute the company's acid-test ratio. 
A)2.75.
B)2.66.
C)0.92.
D)1.12.
E)1.63.

Accepted Answer

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Question 6

Refer to the following selected financial information from Marston Company. Compute the company's accounts receivable turnover for Year 2. 
A)8.36.
B)8.37.
C)4.78.
D)8.59.
E)8.54.

Accepted Answer

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Question 7

Washburn Company reported cost of goods sold of $977,000 for Year 1 and $953,000 for Year 2. Using Year 1 as the base year, what was the percentage change for cost of goods sold from Year 1 to Year 2?
A)2.49% decrease.
B)2.52% decrease.
C)2.52% increase.
D)2.46% increase.
E)2.46% decreasE.(953,000 - 977,000)/977,000 = 2.46% decrease

Accepted Answer

The percentage change for cost of goods sold is calculated as (Year 2 - Year 1) / Year 1 * 100. Plugging in the numbers from the problem gives us:

(953,000 - 977,000) / 977,000 * 100 = -2.46%

The negative sign indicates a decrease. Therefore, the best choice is E: 2.46% decrease.

Question 8

Refer to the following selected financial information from Frankle Corp. Compute the company's working capital. 
A)$536,650.
B)$230,200.
C)$568,200.
D)$198,650.
E)$231,450.

Accepted Answer

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Question 9

Refer to the following selected financial information from Graceworks Corp. Compute the company's inventory turnover for Year 2. 
A)1.79.
B)1.71.
C)1.85.
D)0.93.
E)1.75.

Accepted Answer

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Question 10

Refer to the following selected financial information from McCormik, LLC. Compute the company's accounts receivable turnover for Year 2. 
A)8.62.
B)8.28.
C)8.94.
D)5.78.
E)7.90.

Accepted Answer

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Question 11

Refer to the following selected financial information from Graphics, Inc. Compute the company's times interest earned. 
A)6.2.
B)2.5.
C)8.7.
D)9.7.
E)3.7.

Accepted Answer

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Question 12

Refer to the following selected financial information from Frankle Corp. Compute the company's current ratio. 
A)6.44.
B)2.84.
C)6.27.
D)3.60.
E)1.44.

Accepted Answer

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Question 13

Refer to the following selected financial information from McCormik, LLC. Compute the company's days' sales in inventory for Year 2. 
A)43.9.
B)42.3.
C)46.2.
D)80.0.
E)113.3.

Accepted Answer

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Question 14

Refer to the following selected financial information from McCormik, LLC. Compute the company's days' sales uncollected for Year 2. 
A)43.9.
B)42.3.
C)46.2.
D)80.0.
E)113.3.

Accepted Answer

Days' sales uncollected = Accounts receivable / (Net sales/365)
Days' sales uncollected for Year 2 = 100/((600+500)/2 / 365) = 43.9

Question 15

Flaherty Corporation used data for 3 years to perform a trend analysis of its operating expenses, which were $54,305 in Year 1; $63,421 in Year 2 and $70,340 in Year 3. Using Year 1 as the base year, the operating expense trend percent (rounded to the nearest whole percent) for Year 2 is:
A)100%.
B)111%.
C)117%.
D)130%.
E)86%.

Accepted Answer

The trend percent for Year 2 is calculated by dividing Year 2 expenses by Year 1 expenses and then multiplying by 100. ($63,421 / $54,305) * 100 = 117%.

Question 16

Refer to the following selected financial information from Shakley's Incorporated. Compute the company's return on total assets for Year 2. 
A)9.6%.
B)15.2%.
C)2.6%.
D)22.2%.
E)14.5%.

Accepted Answer

Return on total assets = Net income/Total assets
= $10,400,000/$68,421,000
= 0.152, which is 15.2% approx.

Question 17

Refer to the following selected financial information from Graceworks, Corp. Compute the company's days' sales in inventory for Year 2. 
A)203.4.
B)228.4.
C)179.5.
D)215.1.
E)113.3.

Accepted Answer

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Question 18

Refer to the following selected financial information from McCormik, LLC. Compute the company's inventory turnover for Year 2. 
A)4.72.
B)4.33.
C)3.28.
D)5.78.
E)3.86.

Accepted Answer

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Question 19

Refer to the following selected financial information from Shakley's Incorporated. Compute the company's profit margin for Year 2. 
A)14.1%.
B)11.7%.
C)9.6%.
D)16.7%.
E)33.9%.

Accepted Answer

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Question 20

Refer to the following selected financial information from Keller Company. Compute the company's debt to equity for Year 2. 
A)0.9.
B)1.1.
C)0.5.
D)1.9.
E)2.1.

Accepted Answer

The answer of Refer to the following selected financial information...

Quiz 13: Analyzing and Interpreting Financial Statements

Refer to the following selected financial information from Shakley's Incorporated. Compute the company's times interest earned for Year 2.

Refer to the following selected financial information from Shakley's Incorporated. Compute the company's debt-to-equity ratio for Year 2.

Washburn Company reported sales of $1,722,000 for Year 1 and $1,831,000 for Year 2. Using Year 1 as the base year, what was the percentage change for sales from Year 1 to Year 2?

Refer to the following selected financial information from Marston Company. Compute the company's days' sales uncollected for Year 2.

Refer to the following selected financial information from Dodge Company. Compute the company's acid-test ratio.

Refer to the following selected financial information from Marston Company. Compute the company's accounts receivable turnover for Year 2.

Washburn Company reported cost of goods sold of $977,000 for Year 1 and $953,000 for Year 2. Using Year 1 as the base year, what was the percentage change for cost of goods sold from Year 1 to Year 2?

Refer to the following selected financial information from Frankle Corp. Compute the company's working capital.

Refer to the following selected financial information from Graceworks Corp. Compute the company's inventory turnover for Year 2.

Refer to the following selected financial information from McCormik, LLC. Compute the company's accounts receivable turnover for Year 2.

Refer to the following selected financial information from Graphics, Inc. Compute the company's times interest earned.

Refer to the following selected financial information from Frankle Corp. Compute the company's current ratio.

Refer to the following selected financial information from McCormik, LLC. Compute the company's days' sales in inventory for Year 2.

Refer to the following selected financial information from McCormik, LLC. Compute the company's days' sales uncollected for Year 2.

Flaherty Corporation used data for 3 years to perform a trend analysis of its operating expenses, which were $54,305 in Year 1; $63,421 in Year 2 and $70,340 in Year 3. Using Year 1 as the base year, the operating expense trend percent (rounded to the nearest whole percent) for Year 2 is:

Refer to the following selected financial information from Shakley's Incorporated. Compute the company's return on total assets for Year 2.

Refer to the following selected financial information from Graceworks, Corp. Compute the company's days' sales in inventory for Year 2.

Refer to the following selected financial information from McCormik, LLC. Compute the company's inventory turnover for Year 2.

Refer to the following selected financial information from Shakley's Incorporated. Compute the company's profit margin for Year 2.

Refer to the following selected financial information from Keller Company. Compute the company's debt to equity for Year 2.