Question 1

A company's calendar-year financial data are shown below. The company had total assets of $339,000 and total equity of $144,400 for the prior year. No additional shares were issued during the year. The December 31 market price per share is $49.50. Cash dividends of $19,500 were paid during the year. Calculate the following ratios for the company:
(a) debt ratio
(b) equity ratio
(c) debt-to-equity ratio
(d) times interest earned
(e) total asset turnover

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Question 2

Comparative calendar-year financial data for a company are shown below. Calculate the following ratios for the company for 2012:
(a) accounts receivable turnover
(b) day's sales uncollected
(c) inventory turnover
(d) days' sales in inventory

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Question 3

Use the financial data shown below to calculate the following ratios for the current year:
(a) Current ratio.
(b) Acid-test ratio.
(c) Accounts receivable turnover.
(d) Days' sales uncollected.
(e) Inventory turnover.
(f) Days' sales in inventory.
(g) Accounts payable turnover.

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Question 4

A company paid cash dividends on its preference shares of $40,000 in the current year when its net income was $120,000 and its average ordinary shareholders' equity was $640,000. What is the company's return on ordinary shareholders' equity?

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Question 5

The current year-end balance sheet data for a company are shown below. Calculate the company's:
(a) working capital.
(b) current ratio.
(c) acid-test ratio.

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Question 6

The comparative balance sheet for Golden Co. is shown below. Express the balance sheet in common-size percents.

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Question 7

The following current year information is available from a manufacturing company:
Calculate the company's accounts receivable turnover and its days' sales uncollected.

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Question 8

Selected balances from a company's financial statements are shown below. Calculate the following ratios for 2012:
(a) accounts receivable turnover
(b) inventory turnover
(c) days' sales uncollected
(d) days' sales in inventory
(d) profit margin.
(e) return on total assets.

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Question 9

Express the following income statement information in common-size percents and in trend percents using 2011 as the base year.

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Question 10

Comparative calendar year financial data for a company are shown below. Calculate the following ratios for 2012:
(a) return on total assets.
(b) return on ordinary shareholders' equity.

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Question 11

Express the following balance sheets for Alberts Company in common-size percents.

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Question 12

The comparative income statements for Golden Company are shown below. Calculate the following ratios for 2012:
(a) profit margin.
(b) gross margin.
(c) times interest earned.

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Question 13

Information from a manufacturing company's current year income statement is as follows. Calculate the company's (a) profit margin ratio, (b) gross margin ratio, and (c) times interest earned.

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Question 14

Use the balance sheets of Sando shown below to calculate the following ratios for 2012 (round to the hundredths):
(a) Current ratio.
(b) Acid-test ratio.
(c) Debt ratio.
(d) Equity ratio.

Accepted Answer

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Question 15

The following information is available for the McCartney Corporation:
Calculate the company's inventory turnover and its days' sales in inventory.

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Question 16

The following selected financial information for a company was reported for the current year end. Calculate the following company ratios:
(a) Accounts receivable turnover.
(b) Inventory turnover.
(c) Days' sales uncollected.

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Question 17

A company's calendar-year financial data are shown below. The company had total assets of $339,000 and total equity of $144,400 for the prior year. No additional shares were issued during the year. The December 31 market price per share is $49.50. Cash dividends of $19,500 were paid during the year. Calculate the following ratios for the company:
(a) profit margin ratio.
(b) gross margin ratio.
(c) return on total assets.
(d) return on ordinary shareholders'equity.
(e) basic earnings per share.
(f) price earnings ratio.
(g) dividend yield.

Accepted Answer

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Question 18

A company reported net income of $78,000 and had 15,000 common shares outstanding throughout the current year. At year-end, the price per share of the company's shares was $49.40. What is the company's year-end price-earnings ratio?

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Question 19

Express the following income statement information in common-size percents (round to nearest whole percent). Comment on the results.

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Question 20

A corporation reports the following year-end balance sheet data. Calculate the following ratios:
(a) working capital
(b) acid-test ratio
(c) current ratio
(d) debt ratio
(e) equity ratio
(f) debt-to-equity ratio

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Quiz 17: Analysis of Financial Statements

Comparative calendar-year financial data for a company are shown below. Calculate the following ratios for the company for 2012: (a) accounts receivable turnover (b) day's sales uncollected (c) inventory turnover (d) days' sales in inventory

Use the financial data shown below to calculate the following ratios for the current year: (a) Current ratio. (b) Acid-test ratio. (c) Accounts receivable turnover. (d) Days' sales uncollected. (e) Inventory turnover. (f) Days' sales in inventory. (g) Accounts payable turnover.

A company paid cash dividends on its preference shares of $40,000 in the current year when its net income was $120,000 and its average ordinary shareholders' equity was $640,000. What is the company's return on ordinary shareholders' equity?

The current year-end balance sheet data for a company are shown below. Calculate the company's: (a) working capital. (b) current ratio. (c) acid-test ratio.

The comparative balance sheet for Golden Co. is shown below. Express the balance sheet in common-size percents.

The following current year information is available from a manufacturing company: Calculate the company's accounts receivable turnover and its days' sales uncollected.

Selected balances from a company's financial statements are shown below. Calculate the following ratios for 2012: (a) accounts receivable turnover (b) inventory turnover (c) days' sales uncollected (d) days' sales in inventory (d) profit margin. (e) return on total assets.

Express the following income statement information in common-size percents and in trend percents using 2011 as the base year.

Comparative calendar year financial data for a company are shown below. Calculate the following ratios for 2012: (a) return on total assets. (b) return on ordinary shareholders' equity.

Express the following balance sheets for Alberts Company in common-size percents.

The comparative income statements for Golden Company are shown below. Calculate the following ratios for 2012: (a) profit margin. (b) gross margin. (c) times interest earned.

Information from a manufacturing company's current year income statement is as follows. Calculate the company's (a) profit margin ratio, (b) gross margin ratio, and (c) times interest earned.

Use the balance sheets of Sando shown below to calculate the following ratios for 2012 (round to the hundredths): (a) Current ratio. (b) Acid-test ratio. (c) Debt ratio. (d) Equity ratio.

The following information is available for the McCartney Corporation: Calculate the company's inventory turnover and its days' sales in inventory.

The following selected financial information for a company was reported for the current year end. Calculate the following company ratios: (a) Accounts receivable turnover. (b) Inventory turnover. (c) Days' sales uncollected.

A company reported net income of $78,000 and had 15,000 common shares outstanding throughout the current year. At year-end, the price per share of the company's shares was $49.40. What is the company's year-end price-earnings ratio?

Express the following income statement information in common-size percents (round to nearest whole percent). Comment on the results.

A corporation reports the following year-end balance sheet data. Calculate the following ratios: (a) working capital (b) acid-test ratio (c) current ratio (d) debt ratio (e) equity ratio (f) debt-to-equity ratio