Question 1

Express the following income statement information in common-size percentages and in trend percentages using Year 1 as the base year.

Accepted Answer

The answer of Express the following income statement information in...

Question 2

Carducci Corporation reported net sales of $3.6 million and beginning total assets of $0.9 million and ending total assets of 1.3 million.The average total asset amount is:

Accepted Answer

A)  $2.3 million.
B)  $2.7 million.
C)  $0.25 million.
D)  $0.36 million.
E)  $1.1 million.

Question 3

The comparison of a company's financial condition and performance across time is known as ________.

Accepted Answer

The answer of The comparison of a company's financial condition...

Question 4

The percent change of a comparative financial statement item is computed by subtracting the estimated period amount from the base period amount,dividing the result by the base period amount and multiplying that result by 100.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

Accounts receivable turnover =...

Question 6

The market price of Shaw Corporation's common stock is $47.50.Shaw declared and paid cash dividends of $3.28 per share and had earnings per share of $6.89.The Dividend yield ratio is:

Accepted Answer

A)  14.5%.
B)  7.4%.
C)  6.5%.
D)  144.8%.
E)  6.9%.

Question 7

Selected current year company information follows: The total asset turnover is:

Accepted Answer

A)  2.24 times
B)  2.81 times
C)  3.64 times
D)  4.67 times
E)  6.28 times

Question 8

Refer to the following selected financial information from Texas Electronics.

-Compute the company's acid-test ratio for Year 2.

Accepted Answer

A)  2.26.
B)  1.98.
C)  2.95.
D)  3.05.
E)  1.88.

Question 9

Three of the most common tools of financial analysis are:

Accepted Answer

A)  Financial reporting,sensitivity analysis,transactional analysis.
B)  Fair presentation,variance analysis,financial reporting.
C)  Horizontal analysis,vertical analysis,ratio analysis.
D)  Relativity analysis,financial reporting,fair value analysis.
E)  Liquidation analysis,political analysis,fair value analysis.

Question 10

Horizontal analysis is the comparison of a company's financial condition and performance to a base amount.

Accepted Answer

A) True 
 B)False

Question 11

Comparative statements for Warmer Corporation are shown below:
  Calculate trend percentages for all income statement amounts shown and comment on the results.Use Year 1 as the base year.Comment on the results.

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> During Year 2,sales declined,cost of sa...

Question 12

When an item has a value in the base period and zero in the analysis period,the decrease is 0 percent.

Accepted Answer

A) True 
 B)False

Question 13

A component of operating efficiency and profitability,calculated by expressing net income as a percent of net sales,is the:

Accepted Answer

A)  Acid-test ratio.
B)  Merchandise turnover.
C)  Price earnings ratio.
D)  Accounts receivable turnover.
E)  Profit margin ratio.

Question 14

What is the purpose of a good financial statement analysis report? What are the key components?

Accepted Answer

A good financial statement analysis repo...

Question 15

The key factors section of a financial statement analysis report includes both quantitative and qualitative indicators of company performance.

Accepted Answer

A) True 
 B)False

Question 16

The comparison of a company's financial condition and performance to a base amount is known as ________.

Accepted Answer

The answer of The comparison of a company's financial condition...

Question 17

Ash Company reported sales of $400,000 for Year 1,$450,000 for Year 2,and $500,000 for Year 3.Using Year 1 as the base year,what is the revenue trend percent for Years 2 and 3?

Accepted Answer

A)  80% for Year 2 and 90% for Year 3.
B)  88% for Year 2 and 80% for Year 3.
C)  88% for Year 2 and 90% for Year 3.
D)  112.5% for Year 2 and 125% for Year 3.
E)  125% for Year 2 and 112.5% for Year 3.

Question 18

Refer to the following selected financial information from Texas Electronics.

-Compute the company's inventory turnover for Year 2.

Accepted Answer

A)  4.72.
B)  4.33.
C)  3.28.
D)  5.78.
E)  3.86.

Question 19

Refer to the following selected financial information from Texas Electronics.

-Compute the company's working capital for Year 2.

Accepted Answer

A)  $232,700.
B)  $220,600.
C)  $147,200.
D)  $111,700.
E)  $142,700.

Question 20

Low expectations of future performance result in a low price-earnings (PE)ratio.

Accepted Answer

A) True 
 B)False

Exam 13: Analysis of Financial Statements

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

Correct AnswerverifiedAccounts receivable turnover =...View AnswerShow Answer

Carducci Corporation reported net sales of $3.6 million and beginning total assets of $0.9 million and ending total assets of 1.3 million.The average total asset amount is:

Correct AnswerverifiedShow Answer

A component of operating efficiency and profitability,calculated by expressing net income as a percent of net sales,is the:

Correct AnswerverifiedShow Answer

The market price of Shaw Corporation's common stock is $47.50.Shaw declared and paid cash dividends of $3.28 per share and had earnings per share of $6.89.The Dividend yield ratio is:

Correct AnswerverifiedShow Answer

The percent change of a comparative financial statement item is computed by subtracting the estimated period amount from the base period amount,dividing the result by the base period amount and multiplying that result by 100.

Correct AnswerverifiedShow Answer

Ash Company reported sales of $400,000 for Year 1,$450,000 for Year 2,and $500,000 for Year 3.Using Year 1 as the base year,what is the revenue trend percent for Years 2 and 3?

Correct AnswerverifiedShow Answer

Low expectations of future performance result in a low price-earnings (PE)ratio.

Correct AnswerverifiedShow Answer

The comparison of a company's financial condition and performance across time is known as ________.

Correct AnswerverifiedShow Answer

What is the purpose of a good financial statement analysis report? What are the key components?

Correct AnswerverifiedA good financial statement analysis repo...View AnswerShow Answer

When an item has a value in the base period and zero in the analysis period,the decrease is 0 percent.

Correct AnswerverifiedShow Answer

The key factors section of a financial statement analysis report includes both quantitative and qualitative indicators of company performance.

Correct AnswerverifiedShow Answer

Express the following income statement information in common-size percentages and in trend percentages using Year 1 as the base year.

Correct AnswerverifiedShow Answer

Horizontal analysis is the comparison of a company's financial condition and performance to a base amount.

Correct AnswerverifiedShow Answer

Refer to the following selected financial information from Texas Electronics. -Compute the company's inventory turnover for Year 2.

Correct AnswerverifiedShow Answer

The comparison of a company's financial condition and performance to a base amount is known as ________.

Correct AnswerverifiedShow Answer

Comparative statements for Warmer Corporation are shown below: Calculate trend percentages for all income statement amounts shown and comment on the results.Use Year 1 as the base year.Comment on the results.

Correct Answerverified During Year 2,sales declined,cost of sa...View AnswerShow Answer

Refer to the following selected financial information from Texas Electronics. -Compute the company's working capital for Year 2.

Correct AnswerverifiedShow Answer

Refer to the following selected financial information from Texas Electronics. -Compute the company's acid-test ratio for Year 2.

Correct AnswerverifiedShow Answer

Selected current year company information follows: The total asset turnover is:

Correct AnswerverifiedShow Answer

Three of the most common tools of financial analysis are:

Correct AnswerverifiedShow Answer

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Accounts receivable turnover =...
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A good financial statement analysis repo...
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During Year 2,sales declined,cost of sa...
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