FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 15: Financial Statement Analysis

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 71

Multiple Choice

Review LaterAdd Note

Review Later

Freiman Corporation's most recent balance sheet and income statement appear below: Income Statement For the Year Ended December 31, Year 2 (in thousands of dollars) $\begin{array}{lr}\text { Sales (all on account) }&\$ 1,310 \\\text {Cost of goods sold. }&780 \\\text {Gross margin. }&530 \\\text {Selling and administrative expense }&359 \\\text {Net operating income }&171 \\\text {Interest expense }& 35 \\\text {Net income before taxes }&136 \\\text { income taxes (30\%) }& 41 \\\text {Net income }& 95\end{array}$ -The working capital at the end of Year 2 is:

A) $260 thousand
B) $680 thousand
C) $700 thousand
D) $540 thousand

E) All of the above
F) None of the above

Correct Answer

verified

Show Answer

Question 72

Multiple Choice

Review LaterAdd Note

Review Later

Mormino Corporation's income statement appears below: $\begin{array}{lr}\text { Income Statement }\\\text {Sales (all on account) }&\$1,240,000\\\text {Cost of goods sold }&730,000\\\text { Gross margin}&510,000\\\text {Operating expenses. }&450,462\\\text {Net operating income }&59,538\\\text {Interest expense }&18,000\\\text {Net income before taxes }&41,538\\\text {Income taxes (35\%) }&14,538\\\text {Net income }&\$27,000\\\end{array}$ The company's gross margin percentage is closest to:

A) 1888.9%
B) 5.3%
C) 41.1%
D) 69.9%

E) A) and D)
F) A) and B)

Correct Answer

verified

Show Answer

Question 73

Essay

Review LaterAdd Note

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?

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

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:

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!

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

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

Neef Corporation has provided the following financial data from its balance sheet and income statement: -The company's return on total assets for Year 2 is closest to:

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:

Sperle Corporation has provided the following data concerning its stockholders' equity accounts: Net income for Year 2 was $30,400. Dividends on common stock during Year 2 totaled $6,400. The market price of common stock at the end of Year 2 was $3.08 per share. -The company's dividend payout ratio for Year 2 is closest to:

Kearin Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $8,000. The market price of common stock at the end of Year 2 was $2.02 per share. -The company's return on total assets for Year 2 is closest to:

Tweedle Corporation's most recent balance sheet and income statement appear below: -The times interest earned ratio for Year 2 is closest to:

Garrott Corporation's total assets were $1,505,000 at the end of Year 2 and $1,520,000 at the end of Year 1. Its total stockholders' equity was $1,197,000 at the end of Year 2 and $1,180,000 at the end of Year 1. -The company's return on equity for Year 2 is closest to:

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

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:

Symons Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $2,500. The market price of common stock at the end of Year 2 was $2.01 per share. -The company's price-earnings ratio for Year 2 is closest to:

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.

Excerpts from Colter Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,210 and the cost of goods sold was $720. -The current ratio at the end of Year 2 is closest to: