Question 1

Neiger 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 times interest earned for Year 2?
e. What is the company's debt-to-equity ratio at the end of Year 2?
f. What is the company's equity multiplier at the end of Year 2?

Accepted Answer

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

Question 2

Dahn Corporation has provided the following financial data:

Dividends on common stock during Year 2 totaled $1,600. The market price of common stock at the end of Year 2 was $2.37 per share.
-The company's average sale period (turnover in days)  for Year 2 is closest to:

Accepted Answer

A)  226.5 days
B)  60.1 days
C)  40.0 days
D)  64.4 daysE) All of the above
F) B) and C)

Question 3

A company's current ratio and an acid-test ratio are both greater than 1. Payment of an account payable would:

Accepted Answer

A)  increase the current ratio but the acid-test ratio would not be affected.
B)  increase the acid-test ratio but the current ratio would not be affected.
C)  increase both the current and acid-test ratios.
D)  decrease both the current and acid-test ratios.E) A) and D)
F) B) and C)

Question 4

An increase in the number of shares of common stock outstanding will increase a company's price-earnings ratio if the market price per share remains unchanged.

Accepted Answer

A) True 
 B)False

Question 5

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) B) and D)
F) A) and B)

Question 6

Spincic Corporation has provided the following data:  The market price of common stock at the end of Year 2 was $4.13 per share. The company's price-earnings ratio for Year 2 is closest to:

Accepted Answer

A)  0.52
B)  8.10
C)  6.16
D)  12.52E) B) and D)
F) A) and B)

Question 7

Medina Corporation has provided the following financial data:   Dividends on common stock during Year 2 totaled $2,000. The market price of common stock at the end of Year 2 was $1.49 per share.
Required:
a. What is the company's times interest earned for Year 2?
b. What is the company's debt-to-equity ratio at the end of Year 2?
c. What is the company's equity multiplier at the end of Year 2?
d. What is the company's net profit margin percentage for Year 2?
e. What is the company's gross margin percentage for Year 2?
f. What is the company's return on total assets for Year 2?
g. What is the company's return on equity for Year 2?
h. What is the company's earnings per share for Year 2?
i. What is the company's price-earnings ratio for Year 2?
j. What is the company's dividend payout ratio for Year 2?
k. What is the company's dividend yield ratio for Year 2?
l. What is the company's book value per share at the end of Year 2?

Accepted Answer

a. Times interest earned = Net operating...

Question 8

The following information relates to Conejo Corporation for last year:  What is Conejo's price-earnings ratio for last year?

Accepted Answer

A)  1.6
B)  2.4
C)  8.0
D)  2.0E) A) and B)
F) A) and C)

Question 9

Financial statements for Maraby Corporation appear below:

-Maraby Corporation's current ratio at the end of Year 2 was closest to:

Accepted Answer

A)  1.34
B)  1.72
C)  0.60
D)  0.44E) C) and D)
F) B) and D)

Question 10

Tobia Corporation has provided the following financial data:   Dividends on common stock during Year 2 totaled $6,300. The market price of common stock at the end of Year 2 was $1.78 per share.
Required:
a. What is the company's times interest earned for Year 2?
b. What is the company's debt-to-equity ratio at the end of Year 2?
c. What is the company's equity multiplier at the end of Year 2?
d. What is the company's earnings per share for Year 2?
e. What is the company's price-earnings ratio for Year 2?
f. What is the company's dividend payout ratio for Year 2?
g. What is the company's dividend yield ratio for Year 2?
h. What is the company's book value per share at the end of Year 2?

Accepted Answer

a. Times interest earned = Net operating...

Question 11

Two-Rivers Inc. (TRI) manufactures a variety of consumer products. The company's founders have run the company for thirty years and are now interested in retiring. Consequently, they are seeking a purchaser, and a group of investors is looking into the acquisition of TRI. To evaluate its financial stability, TRI was requested to provide its latest financial statements and selected financial ratios. Summary information provided by TRI is presented below.    Required:
a. Calculate the select financial ratios for the fiscal year Year 2.
b. Interpret what each of these financial ratios means in terms of TRI's financial stability and operating efficiency.

Accepted Answer

a. The calculation of selected financial...

Question 12

Doonan Corporation has provided the following financial data from its balance sheet and income statement:

The market price of common stock at the end of Year 2 was $4.79 per share.
-The company's return on total assets for Year 2 is closest to:

Accepted Answer

A)  1.77%
B)  2.46%
C)  1.80%
D)  2.42%E) B) and D)
F) None of the above

Question 13

Sabino Corporation's total common stock was $500,000 at the end of both Year 2 and Year 1. The par value of common stock is $5 per share. The company's total stockholders' equity at the end of Year 2 amounted to $1,125,000 and at the end of Year 1 to $1,090,000. The company's total liabilities and stockholders' equity at the end of Year 2 amounted to $1,581,000 and at the end of Year 1 to $1,540,000. The company's retained earnings at the end of Year 2 amounted to $545,000 and at the end of Year 1 to $510,000. The company's net income in Year 2 was $39,000. The company's book value per share at the end of Year 2 is closest to:

Accepted Answer

A)  $0.39 per share
B)  $15.81 per share
C)  $11.25 per share
D)  $5.45 per shareE) B) and C)
F) A) and D)

Question 14

The dividend payout ratio is equal to the dividend per share divided by the earnings per share.

Accepted Answer

A) True 
 B)False

Question 15

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 C)
F) A) and D)

Question 16

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 17

Data from Ben Corporation's most recent balance sheet and income statement appear below:  Required:
Compute the average sale period for this year:

Accepted Answer

Average sale period = 365 days ÷ Invento...

Question 18

Data from Lheureux Corporation's most recent balance sheet and the company's income statement appear below:

-The times interest earned for Year 2 is closest to:

Accepted Answer

A)  2.22
B)  4.17
C)  3.17
D)  5.95E) A) and B)
F) A) and C)

Question 19

Frantic Corporation had $130,000 in sales on account last year. The beginning accounts receivable balance was $10,000 and the ending accounts receivable balance was $16,000. The corporation's accounts receivable turnover was closest to:

Accepted Answer

A)  5.00
B)  13.00
C)  10.00
D)  8.13E) A) and D)
F) All of the above

Question 20

Deflorio Corporation's inventory at the end of Year 2 was $156,000 and its inventory at the end of Year 1 was $140,000. The company's total assets at the end of Year 2 were $1,416,000 and its total assets at the end of Year 1 were $1,390,000. Sales amounted to $1,320,000 in Year 2. The company's total asset turnover for Year 2 is closest to:

Accepted Answer

A)  0.94
B)  1.06
C)  5.38
D)  0.19E) None of the above
F) All of the above

Exam 15: Financial Statement Analysis

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a. The calculation of selected financial...
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Frantic Corporation had $130,000 in sales on account last year. The beginning accounts receivable balance was $10,000 and the ending accounts receivable balance was $16,000. The corporation's accounts receivable turnover was closest to:

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Spincic Corporation has provided the following data: The market price of common stock at the end of Year 2 was $4.13 per share. The company's price-earnings ratio for Year 2 is closest to:

Correct Answer
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Doonan Corporation has provided the following financial data from its balance sheet and income statement: The market price of common stock at the end of Year 2 was $4.79 per share. -The company's return on total assets for Year 2 is closest to:

Correct Answer
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An increase in the number of shares of common stock outstanding will increase a company's price-earnings ratio if the market price per share remains unchanged.

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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The dividend payout ratio is equal to the dividend per share divided by the earnings per share.

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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Dahn Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $1,600. The market price of common stock at the end of Year 2 was $2.37 per share. -The company's average sale period (turnover in days) for Year 2 is closest to:

Correct Answer
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A company's current ratio and an acid-test ratio are both greater than 1. Payment of an account payable would:

Correct Answer
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Correct Answer
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a. Times interest earned = Net operating...
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Financial statements for Maraby Corporation appear below: -Maraby Corporation's current ratio at the end of Year 2 was closest to:

Correct Answer
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The following information relates to Conejo Corporation for last year: What is Conejo's price-earnings ratio for last year?

Correct Answer
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Data from Ben Corporation's most recent balance sheet and income statement appear below: Required: Compute the average sale period for this year:

Correct Answer
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Average sale period = 365 days ÷ Invento...
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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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Correct Answer
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a. Times interest earned = Net operating...
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Correct Answer
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a. Working capital = Current assets - Cu...
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Data from Lheureux Corporation's most recent balance sheet and the company's income statement appear below: -The times interest earned for Year 2 is closest to:

Correct Answer
verified

Exam 15: Financial Statement Analysis

Correct Answerverifieda. The calculation of selected financial...View AnswerShow Answer

Frantic Corporation had $130,000 in sales on account last year. The beginning accounts receivable balance was $10,000 and the ending accounts receivable balance was $16,000. The corporation's accounts receivable turnover was closest to:

Correct AnswerverifiedShow Answer

Spincic Corporation has provided the following data: The market price of common stock at the end of Year 2 was $4.13 per share. The company's price-earnings ratio for Year 2 is closest to:

Correct AnswerverifiedShow Answer

Doonan Corporation has provided the following financial data from its balance sheet and income statement: The market price of common stock at the end of Year 2 was $4.79 per share. -The company's return on total assets for Year 2 is closest to:

Correct AnswerverifiedShow Answer

An increase in the number of shares of common stock outstanding will increase a company's price-earnings ratio if the market price per share remains unchanged.

Correct AnswerverifiedShow Answer

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 AnswerverifiedShow Answer

The dividend payout ratio is equal to the dividend per share divided by the earnings per share.

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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 AnswerverifiedShow Answer

Dahn Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $1,600. The market price of common stock at the end of Year 2 was $2.37 per share. -The company's average sale period (turnover in days) for Year 2 is closest to:

Correct AnswerverifiedShow Answer

A company's current ratio and an acid-test ratio are both greater than 1. Payment of an account payable would:

Correct AnswerverifiedShow Answer

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

Financial statements for Maraby Corporation appear below: -Maraby Corporation's current ratio at the end of Year 2 was closest to:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The following information relates to Conejo Corporation for last year: What is Conejo's price-earnings ratio for last year?

Correct AnswerverifiedShow Answer

Data from Ben Corporation's most recent balance sheet and income statement appear below: Required: Compute the average sale period for this year:

Correct AnswerverifiedAverage sale period = 365 days ÷ Invento...View AnswerShow Answer

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

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

Correct AnswerverifiedShow Answer

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

Data from Lheureux Corporation's most recent balance sheet and the company's income statement appear below: -The times interest earned for Year 2 is closest to:

Correct AnswerverifiedShow Answer

Correct Answer
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a. The calculation of selected financial...
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a. Times interest earned = Net operating...
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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Average sale period = 365 days ÷ Invento...
View Answer

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

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

Correct Answer
verified

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

Correct Answer
verified