Question 1

The company's return on total assets for Year 2 is closest to:

Accepted Answer

A)  2.09%
B)  2.08%
C)  1.67%
D)  1.66%E) All of the above
F) A) and B)

Question 2

The company's equity multiplier at the end of Year 2 is closest to:

Accepted Answer

A)  0.28
B)  1.28
C)  3.53
D)  0.78E) None of the above
F) B) and C)

Question 3

The company's accounts receivable turnover for Year 2 is closest to:

Accepted Answer

A)  1.06
B)  5.06
C)  5.21
D)  0.94E) A) and B)
F) C) and D)

Question 4

The company's inventory turnover for Year 2 is closest to:

Accepted Answer

A)  3.89
B)  1.04
C)  3.97
D)  4.05E) A) and B)
F) A) and C)

Question 5

The company's price-earnings ratio for Year 2 is closest to:

Accepted Answer

A)  3.79
B)  10.58
C)  0.17
D)  7.44E) B) and C)
F) All of the above

Question 6

The current ratio at the end of Year 2 is closest to:

Accepted Answer

A)  0.38
B)  2.17
C)  0.94
D)  0.40E) None of the above
F) A) and B)

Question 7

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:

Accepted Answer

A)  1.31
B)  0.76
C)  0.33
D)  0.36E) A) and B)
F) A) and C)

Question 8

The company's average sale period for Year 2 is closest to:

Accepted Answer

A)  226.5 days
B)  60.1 days
C)  40.0 days
D)  64.4 daysE) A) and D)
F) A) and C)

Question 9

The company's dividend yield ratio for Year 2 is closest to:

Accepted Answer

A)  21.1%
B)  2.6%
C)  1.6%
D)  14.7%E) B) and D)
F) B) and C)

Question 10

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:

Accepted Answer

A)  64.40%
B)  8.93%
C)  6.75%
D)  4.72%E) A) and D)
F) None of the above

Question 11

The company's working capital is:

Accepted Answer

A)  $671,000
B)  $665,000
C)  $418,000
D)  $983,000E) A) and D)
F) None of the above

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Hernande Corporation has provided the following data:  The company's earnings per share for Year 2 is closest to:

Accepted Answer

A)  $4.25 per share
B)  $0.43 per share
C)  $0.61 per share
D)  $0.75 per shareE) C) and D)
F) None of the above

Question 15

Windham Corporation has current assets of $400,000 and current liabilities of $500,000.Windham Corporation's current ratio would be increased by:

Accepted Answer

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.E) C) and D)
F) B) and D)

Question 16

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:

Accepted Answer

A)  $12,400
B)  $24,000
C)  $30,000
D)  $40,000E) None of the above
F) A) and B)

Question 17

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:

Accepted Answer

A)  $22.45 per share
B)  $12.45 per share
C)  $0.55 per share
D)  $15.45 per shareE) C) and D)
F) A) and D)

Question 18

Maraby Corporation's average sale period for Year 2 was closest to:

Accepted Answer

A)  38.8 days
B)  32.6 days
C)  46.6 days
D)  27.0 daysE) C) and D)
F) None of the above

Question 19

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?

Accepted Answer

a.Net profit margin percentage = Net inc...

Question 20

The company's price-earnings ratio for Year 2 is closest to:

Accepted Answer

A)  0.76
B)  10.64
C)  16.52
D)  7.73E) A) and B)
F) B) and D)

Exam 14: Financial Statement Analysis

The company's inventory turnover for Year 2 is closest to:

Correct Answer
verified

The company's average sale period for Year 2 is closest to:

Correct Answer
verified

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:

Correct Answer
verified

Correct Answer
verified
a.Net profit margin percentage = Net inc...
View Answer

The company's accounts receivable turnover for Year 2 is closest to:

Correct Answer
verified

The company's working capital is:

Correct Answer
verified

Correct Answer
verified

The company's equity multiplier at the end of Year 2 is closest to:

Correct Answer
verified

The company's price-earnings ratio for Year 2 is closest to:

Correct Answer
verified

Hernande Corporation has provided the following data: The company's earnings per share for Year 2 is closest to:

Correct Answer
verified

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:

Correct Answer
verified

The current ratio at the end of Year 2 is closest to:

Correct Answer
verified

Maraby Corporation's average sale period for Year 2 was closest to:

Correct Answer
verified

The company's price-earnings ratio for Year 2 is closest to:

Correct Answer
verified

Windham Corporation has current assets of $400,000 and current liabilities of $500,000.Windham Corporation's current ratio would be increased by:

Correct Answer
verified

The company's dividend yield ratio for Year 2 is closest to:

Correct Answer
verified

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

Correct Answer
verified

The company's return on total assets for Year 2 is closest to:

Correct Answer
verified

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:

Correct Answer
verified

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

Correct Answer
verified

Exam 14: Financial Statement Analysis

The company's inventory turnover for Year 2 is closest to:

Correct AnswerverifiedShow Answer

The company's average sale period for Year 2 is closest to:

Correct AnswerverifiedShow Answer

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:

Correct AnswerverifiedShow Answer

Correct Answerverifieda.Net profit margin percentage = Net inc...View AnswerShow Answer

The company's accounts receivable turnover for Year 2 is closest to:

Correct AnswerverifiedShow Answer

The company's working capital is:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The company's equity multiplier at the end of Year 2 is closest to:

Correct AnswerverifiedShow Answer

The company's price-earnings ratio for Year 2 is closest to:

Correct AnswerverifiedShow Answer

Hernande Corporation has provided the following data: The company's earnings per share for Year 2 is closest to:

Correct AnswerverifiedShow Answer

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:

Correct AnswerverifiedShow Answer

The current ratio at the end of Year 2 is closest to:

Correct AnswerverifiedShow Answer

Maraby Corporation's average sale period for Year 2 was closest to:

Correct AnswerverifiedShow Answer

The company's price-earnings ratio for Year 2 is closest to:

Correct AnswerverifiedShow Answer

Windham Corporation has current assets of $400,000 and current liabilities of $500,000.Windham Corporation's current ratio would be increased by:

Correct AnswerverifiedShow Answer

The company's dividend yield ratio for Year 2 is closest to:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The company's return on total assets for Year 2 is closest to:

Correct AnswerverifiedShow Answer

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:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
a.Net profit margin percentage = Net inc...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified