Question 1

Uhri Corporation has provided the following data:  Dividends on common stock during Year 2 totaled $4,000. The market price of common stock at the end of Year 2 was $6.08 per share. The company's dividend payout ratio for Year 2 is closest to:

Accepted Answer

A)  7.8%
B)  1.3%
C)  11.1%
D)  0.8%E) A) and B)
F) A) and C)

Question 2

Abdool Corporation has provided the following financial data:   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 accounts receivable turnover for Year 2?
e. What is the company's average collection period (age of receivables) for Year 2?
f. What is the company's inventory turnover for Year 2?
g. What is the company's average sale period (turnover in days) for Year 2?
h. What is the company's operating cycle for Year 2?
i. What is the company's total asset turnover for Year 2?

Accepted Answer

a. Working capital = Current assets - Cu...

Question 3

Wittels Corporation has provided the following data:  In Year 2, the company's net operating income was $42,571, its net income before taxes was $21,571, and its net income was $15,100. The company's equity multiplier is closest to:

Accepted Answer

A)  1.14
B)  0.53
C)  0.88
D)  1.87E) None of the above
F) B) and C)

Question 4

Falmouth Corporation's debt to equity ratio is 0.6. Current liabilities are $120,000, long term liabilities are $360,000, and working capital is $140,000. Total assets of the corporation must be:

Accepted Answer

A)  $600,000
B)  $1,200,000
C)  $800,000
D)  $1,280,000E) A) and B)
F) None of the above

Question 5

Sidell Corporation's most recent balance sheet and income statement appear below:   Required:
Compute the following for Year 2:
a. Times interest earned.
b. Debt-to-equity ratio.

Accepted Answer

a. Times interest earned = Net...

Question 6

Financial statements for Maraby Corporation appear below:   Maraby Corporation's accounts receivable turnover for Year 2 was closest to:

Accepted Answer

A)  13.5
B)  7.8
C)  11.2
D)  9.4E) B) and C)
F) None of the above

Question 7

Macmillan Corporation has provided the following financial data:   Dividends on common stock during Year 2 totaled $7,200. The market price of common stock at the end of Year 2 was $3.69 per share. The company's current ratio at the end of Year 2 is closest to:

Accepted Answer

A)  0.83
B)  1.96
C)  0.45
D)  0.37E) None of the above
F) B) and D)

Question 8

Mayfield Corporation has provided the following financial data:  The company's acid-test (quick)  ratio is closest to:

Accepted Answer

A)  1.90
B)  1.85
C)  2.65
D)  1.81E) B) and D)
F) None of the above

Question 9

Recher Corporation's common stock has a par value of $3 per share and has been stable at a total value of $270,000 on the company's balance sheet for several years. The total stockholders' equity at the end of this year was $1,023,000 and at the beginning of the year was $1,010,000. Net income for the year was $17,500. Dividends on common stock during the year totaled $4,500. The market price of common stock at the end of the year was $3.76 per share. The company's earnings per share is closest to:

Accepted Answer

A)  $7.37 per share
B)  $0.45 per share
C)  $0.30 per share
D)  $0.19 per shareE) All of the above
F) C) and D)

Question 10

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) A) and B)
F) A) and C)

Question 11

Settles Corporation has provided the following financial data:   Dividends on common stock during Year 2 totaled $5,400. The market price of common stock at the end of Year 2 was $5.89 per share. The company's return on total assets for Year 2 is closest to:

Accepted Answer

A)  2.75%
B)  1.64%
C)  1.65%
D)  2.76%E) A) and C)
F) A) and B)

Question 12

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:

Accepted Answer

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

Question 13

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 dividend yield ratio for Year 2 is closest to:

Accepted Answer

A)  1.0%
B)  18.4%
C)  26.3%
D)  2.5%E) B) and D)
F) All of the above

Question 14

Sehrt Corporation has provided the following financial data:  The company's net income for Year 2 was $44,000. Dividends on common stock during Year 2 totaled $11,000. The market price of common stock at the end of Year 2 was $6.29 per share.
Required:
a. What is the company's earnings per share for Year 2?
b. What is the company's price-earnings ratio for Year 2?
c. What is the company's dividend payout ratio for Year 2?
d. What is the company's dividend yield ratio for Year 2?
e. What is the company's book value per share at the end of Year 2?

Accepted Answer

a. Earnings per share = Net Income ÷ Ave...

Question 15

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:

Accepted Answer

A)  0.32
B)  0.38
C)  1.25
D)  1.20E) B) and C)
F) None of the above

Question 16

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:

Accepted Answer

A)  0.2%
B)  1.3%
C)  1.9%
D)  0.5%E) B) and D)
F) A) and B)

Question 17

Deacon Corporation has provided the following financial data from its balance sheet and income statement:  The company's times interest earned for Year 2 is closest to:

Accepted Answer

A)  2.74
B)  8.02
C)  5.21
D)  4.21E) None of the above
F) A) and B)

Question 18

Mcrae Corporation's total current assets are $380,000, its noncurrent assets are $500,000, its total current liabilities are $340,000, its long-term liabilities are $250,000, and its stockholders' equity is $290,000. Working capital is:

Accepted Answer

A)  $380,000
B)  $40,000
C)  $250,000
D)  $290,000E) A) and B)
F) None of the above

Question 19

Freiman Corporation's most recent balance sheet and income statement appear below:   The current ratio at the end of Year 2 is closest to:

Accepted Answer

A)  0.45
B)  1.93
C)  0.44
D)  1.04E) None of the above
F) A) and D)

Question 20

Sand Company has an acid-test ratio of 0.8. Which of the following actions would improve the acid-test ratio?

Accepted Answer

A)  Collect some accounts receivable.
B)  Acquire some inventory on account.
C)  Sell some equipment for cash.
D)  Use cash to pay off some accounts payable.E) A) and B)
F) A) and C)

Exam 13: Financial Statement Analysis

Financial statements for Maraby Corporation appear below: Maraby Corporation's accounts receivable turnover for Year 2 was closest to:

Correct Answer
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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:

Correct Answer
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Correct Answer
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a. Earnings per share = Net Income ÷ Ave...
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Macmillan Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $7,200. The market price of common stock at the end of Year 2 was $3.69 per share. The company's current ratio at the end of Year 2 is closest to:

Correct Answer
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Correct Answer
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Mcrae Corporation's total current assets are $380,000, its noncurrent assets are $500,000, its total current liabilities are $340,000, its long-term liabilities are $250,000, and its stockholders' equity is $290,000. Working capital is:

Correct Answer
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Deacon Corporation has provided the following financial data from its balance sheet and income statement: The company's times interest earned for Year 2 is closest to:

Correct Answer
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Falmouth Corporation's debt to equity ratio is 0.6. Current liabilities are $120,000, long term liabilities are $360,000, and working capital is $140,000. Total assets of the corporation must be:

Correct Answer
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Sidell Corporation's most recent balance sheet and income statement appear below: Required: Compute the following for Year 2: a. Times interest earned. b. Debt-to-equity ratio.

Correct Answer
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a. Times interest earned = Net...
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Sand Company has an acid-test ratio of 0.8. Which of the following actions would improve the acid-test ratio?

Correct Answer
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Correct Answer
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Uhri Corporation has provided the following data: Dividends on common stock during Year 2 totaled $4,000. The market price of common stock at the end of Year 2 was $6.08 per share. The company's dividend payout ratio for Year 2 is closest to:

Correct Answer
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Correct Answer
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a. Working capital = Current assets - Cu...
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Settles Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $5,400. The market price of common stock at the end of Year 2 was $5.89 per share. The company's return on total assets for Year 2 is closest to:

Correct Answer
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Correct Answer
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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 dividend yield ratio for Year 2 is closest to:

Correct Answer
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Wittels Corporation has provided the following data: In Year 2, the company's net operating income was $42,571, its net income before taxes was $21,571, and its net income was $15,100. The company's equity multiplier is closest to:

Correct Answer
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Mayfield Corporation has provided the following financial data: The company's acid-test (quick) ratio is closest to:

Correct Answer
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Freiman Corporation's most recent balance sheet and income statement appear below: The current ratio at the end of Year 2 is closest to:

Correct Answer
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Correct Answer
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Exam 13: Financial Statement Analysis

Financial statements for Maraby Corporation appear below: Maraby Corporation's accounts receivable turnover for Year 2 was closest to:

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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:

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Correct Answerverifieda. Earnings per share = Net Income ÷ Ave...View AnswerShow Answer

Macmillan Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $7,200. The market price of common stock at the end of Year 2 was $3.69 per share. The company's current ratio at the end of Year 2 is closest to:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Mcrae Corporation's total current assets are $380,000, its noncurrent assets are $500,000, its total current liabilities are $340,000, its long-term liabilities are $250,000, and its stockholders' equity is $290,000. Working capital is:

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Deacon Corporation has provided the following financial data from its balance sheet and income statement: The company's times interest earned for Year 2 is closest to:

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Falmouth Corporation's debt to equity ratio is 0.6. Current liabilities are $120,000, long term liabilities are $360,000, and working capital is $140,000. Total assets of the corporation must be:

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Sidell Corporation's most recent balance sheet and income statement appear below: Required: Compute the following for Year 2: a. Times interest earned. b. Debt-to-equity ratio.

Correct Answerverifieda. Times interest earned = Net...View AnswerShow Answer

Sand Company has an acid-test ratio of 0.8. Which of the following actions would improve the acid-test ratio?

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Uhri Corporation has provided the following data: Dividends on common stock during Year 2 totaled $4,000. The market price of common stock at the end of Year 2 was $6.08 per share. The company's dividend payout ratio for Year 2 is closest to:

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Correct Answerverifieda. Working capital = Current assets - Cu...View AnswerShow Answer

Settles Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $5,400. The market price of common stock at the end of Year 2 was $5.89 per share. The company's return on total assets for Year 2 is closest to:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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 dividend yield ratio for Year 2 is closest to:

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Wittels Corporation has provided the following data: In Year 2, the company's net operating income was $42,571, its net income before taxes was $21,571, and its net income was $15,100. The company's equity multiplier is closest to:

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Mayfield Corporation has provided the following financial data: The company's acid-test (quick) ratio is closest to:

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Freiman Corporation's most recent balance sheet and income statement appear below: The current ratio at the end of Year 2 is closest to:

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Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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a. Earnings per share = Net Income ÷ Ave...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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a. Times interest earned = Net...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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a. Working capital = Current assets - Cu...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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