Question 1

Revenue and expense data for Young Technologies are as follows:
  Required:

Accepted Answer

(1)
Young Technologies Inc.
Co...

Question 2

Short-term creditors are typically most interested in assessing

Accepted Answer

A)   marketability.
B)   profitability.
C)   operating results.
D)   solvency.E) A) and D)
F) All of the above

Question 3

A company reports the following:
  Determine the ratio of net sales to total assets. Round your answer to one decimal place.

Accepted Answer

Ratio of net sales to total as...

Question 4

All of the following are typically included in the Management's Discussion and Analysis in annual reports except:

Accepted Answer

A)   explanations of any significant changes between the current and prior years' financial statements.
B)   management's assessment of liquidity.
C)   journal entries.
D)   off-balance-sheet arrangementsE) C) and D)
F) A) and D)

Question 5

The following information is available for Dorman Company:  Which of the following statements is correct?

Accepted Answer

A)   The dividend yield is 6.0%, which is of interest to investors seeking an increase in market price of their stocks.
B)   The dividend yield is 6.0%, which is of special interest to investors seeking to earn revenue on their investments.
C)   The dividend yield is 16.7%, which is of interest to bondholders.
D)   The dividend yield is 16.7% which is an important measure of solvency.E) A) and B)
F) None of the above

Question 6

Which of the following items should be classified as an extraordinary item on a corporate income statement?

Accepted Answer

A)   gain on the retirement of a bond payable
B)   loss from land condemned for public use
C)   loss due to an discontinued operation
D)   selling treasury stock for more than the company paid for itE) A) and D)
F) All of the above

Question 7

Define solvency and profitability. How are they alike?

Accepted Answer

Solvency is the ability of a company to ...

Question 8

Why would you compare or not compare Coca-Cola and Pepsi-Cola (PepsiCo) as companies to each other?

Accepted Answer

Coca-Cola has maintained its focus on th...

Question 9

A common measure of liquidity is

Accepted Answer

A)   ratio of net sales to assets.
B)   dividends per share of common stock.
C)   receivable turnover.
D)   profit margin.E) A) and B)
F) B) and C)

Question 10

Based on the above data, what is the amount of quick assets?

Accepted Answer

A)   $168,000
B)   $96,000
C)   $60,000
D)   $61,000E) All of the above
F) A) and B)

Question 11

The following information pertains to Carlton Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Assets

What is the price earnings ratio for this company? Round your answer to one decimal point.

Accepted Answer

A)   8.0 times
B)   2.5 times
C)   4.0 times
D)   6.0 timesE) B) and D)
F) A) and B)

Question 12

The numerator used to calculate accounts receivable turnover is

Accepted Answer

A)   total sales
B)   net sales
C)   accounts receivable at year-end
D)   average accounts receivableE) A) and B)
F) A) and C)

Question 13

For Garrison Corporation, the working capital at the end of the current year is $10,000 more than the working capital at the end of the preceding year, reported as follows:
  Required:
Has the current position improved? Explain.

Accepted Answer

The amount of working capital and the ch...

Question 14

Comparing dividends per share to earnings per share indicates the extent to which the corporation is retaining its earnings for use in operations.

Accepted Answer

A) True 
 B)False

Question 15

Which one of the following is not a characteristic generally evaluated in ratio analysis?

Accepted Answer

A)   liquidity
B)   profitability
C)   solvency
D)   marketabilityE) None of the above
F) A) and B)

Question 16

The particular analytical measures chosen to analyze a company may be influenced by all of the following except:

Accepted Answer

A)   industry type
B)   capital structure
C)   diversity of business operations
D)   product quality or service effectivenessE) All of the above
F) B) and D)

Question 17

A loss on disposal of a segment would be reported in the income statement as a(n)

Accepted Answer

A)   administrative expense
B)   other expense
C)   deduction from income from continuing operations
D)   selling expenseE) A) and B)
F) C) and D)

Question 18

If a company has issued only one class of stock, the earnings per share are determined by dividing net income plus interest expense by the number of shares outstanding.

Accepted Answer

A) True 
 B)False

Question 19

Based on the following data for the current year, what is the accounts receivable turnover?

Accepted Answer

A)   17.5
B)   2.6
C)   20.0
D)   15.5E) All of the above
F) A) and B)

Question 20

A company with $70,000 in current assets and $50,000 in current liabilities pays a $1,000 current liability. As a result of this transaction, the current ratio and working capital will

Accepted Answer

A)   both decrease.
B)   both increase.
C)   increase and remain the same, respectively.
D)   remain the same and decrease, respectively.E) All of the above
F) A) and B)

Exam 17: Financial Statement Analysis

The particular analytical measures chosen to analyze a company may be influenced by all of the following except:

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Which of the following items should be classified as an extraordinary item on a corporate income statement?

Correct AnswerverifiedShow Answer

A loss on disposal of a segment would be reported in the income statement as a(n)

Correct AnswerverifiedShow Answer

Comparing dividends per share to earnings per share indicates the extent to which the corporation is retaining its earnings for use in operations.

Correct AnswerverifiedShow Answer

A common measure of liquidity is

Correct AnswerverifiedShow Answer

A company reports the following: Determine the ratio of net sales to total assets. Round your answer to one decimal place.

Correct AnswerverifiedRatio of net sales to total as...View AnswerShow Answer

The following information pertains to Carlton Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Assets What is the price earnings ratio for this company? Round your answer to one decimal point.

Correct AnswerverifiedShow Answer

The following information is available for Dorman Company: Which of the following statements is correct?

Correct AnswerverifiedShow Answer

Short-term creditors are typically most interested in assessing

Correct AnswerverifiedShow Answer

Which one of the following is not a characteristic generally evaluated in ratio analysis?

Correct AnswerverifiedShow Answer

Define solvency and profitability. How are they alike?

Correct AnswerverifiedSolvency is the ability of a company to ...View AnswerShow Answer

Based on the above data, what is the amount of quick assets?

Correct AnswerverifiedShow Answer

Revenue and expense data for Young Technologies are as follows: Required:

Correct Answerverified(1)Young Technologies Inc.Co...View AnswerShow Answer

All of the following are typically included in the Management's Discussion and Analysis in annual reports except:

Correct AnswerverifiedShow Answer

Based on the following data for the current year, what is the accounts receivable turnover?

Correct AnswerverifiedShow Answer

Why would you compare or not compare Coca-Cola and Pepsi-Cola (PepsiCo) as companies to each other?

Correct AnswerverifiedCoca-Cola has maintained its focus on th...View AnswerShow Answer

The numerator used to calculate accounts receivable turnover is

Correct AnswerverifiedShow Answer

If a company has issued only one class of stock, the earnings per share are determined by dividing net income plus interest expense by the number of shares outstanding.

Correct AnswerverifiedShow Answer

A company with $70,000 in current assets and $50,000 in current liabilities pays a $1,000 current liability. As a result of this transaction, the current ratio and working capital will

Correct AnswerverifiedShow Answer

For Garrison Corporation, the working capital at the end of the current year is $10,000 more than the working capital at the end of the preceding year, reported as follows: Required: Has the current position improved? Explain.

Correct AnswerverifiedThe amount of working capital and the ch...View AnswerShow Answer

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Ratio of net sales to total as...
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Solvency is the ability of a company to ...
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(1)
Young Technologies Inc.
Co...
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Coca-Cola has maintained its focus on th...
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The amount of working capital and the ch...
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