FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 13: Analyzing Financial Statements

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 31

True/False

Review LaterAdd Note

Review Later

Return on assets (ROA)is usually viewed as a realistic measure of management's performance in using all of the resources available to the company regardless of how the assets are financed.

Correct Answer

verified

Show Answer

Question 32

Multiple Choice

Review LaterAdd Note

Review Later

A weakness of the current ratio is

A) the difficulty of the calculation.
B) that it doesn't take into account the composition of the current assets.
C) that it is rarely used by sophisticated analysts.
D) that it can be expressed as a percentage,as a rate,or as a proportion.

Correct Answer

verified

Show Answer

Question 33

Multiple Choice

Review LaterAdd Note

At the end of 20B,Storage Company reported 15,000 outstanding common shares.Total liabilities were $440,000 and total assets were $860,000.The company had no preferred shares.What was the book value per share of common share?

Which of the following accounting ratios considers the importance of cash flows relating to required interest payments?

The average days' supply in inventory is computed by dividing the days in the year by the ending balance of inventory.

Profitability ratios are evaluated by comparing them over time for a single company or by comparing them with ratios for similar companies.

Lyceum Co.reported profit of $8.3 million,interest expense of $.5 million and they are in a 30% tax rate bracket.Their average total assets are $65.8 million and average shareholders' equity is $48.6 million.What is Lyceum's financial leverage advantage or disadvantage?

Indicate the proper category for each ratio. Primary Category Test of: A.Profitability B.Liquidity C.Solvency D.Market E.Miscellaneous ratio Ratio ____ 1.Earnings per share ____ 2.Current ratio ____ 3.Debt/equity ratio ____ 4.Dividend yield ratio ____ 5.Receivables turnover ratio ____ 6.Return on equity ____ 7.Price/earnings ratio ____ 8.Creditors' equity to total equities ____ 9.Profit margin ___ 10.Inventory turnover ratio ___ 11.Owners' equity to total equities ___ 12.Quick ratio ___ 13.Return on assets ___ 14.Financial leverage ___ 15.Book value per common share ___ 16.Quality of earnings ___ 17.Fixed asset turnover ratio ___ 18.Cash coverage ___ 19.Cash ratio ___ 20.Times interest earned

The price-earnings ratio reflects investors' expectations about the future profitability of the company.

If the current ratio is 2 to 1,the payment of a cash dividend,which was recorded as a liability on the date of declaration,will do which of the following?

At the end of 20B,Wild Corporation reported net income of $70,000,gross sales revenue of $1,525,000,and sales returns of $125,000.The profit margin was ______%.

The only way an investor will get a return on shares while they own the shares is for the corporation to distribute a dividend.

An aircraft company would most likely have

The current ratio is a less stringent test of liquidity than is the quick ratio.

Since inventory is a significant current asset for most retail organizations,the inventory turnover ratio would be of significance to investors and analysts in terms of assessing liquidity.

In 2012,C Co's receivables turnover ratio and days' sales in receivables was 11.43 times and 31.9 days.In 2012,P Co's receivables turnover ratio and days' sales in receivables was 9.71 times and 37.6 days.Which of the following statements is false?

In simple terms,a business strategy establishes the objectives a business is trying to achieve.

Nunn Company reported the following data: What was the current ratio?

A primary objective of financial statements is to provide information to current and potential investors and creditors.

At the end of 20C,Anderson Corporation reported a return on assets of 16%; net income of $42,000; total assets of $365,000,and total liabilities of $165,000.The financial leverage percent was ___________.