275. Explain how to calculate dividend yield and explain how it is used in the analysis of a company's financial condition.
276. Explain how to calculate the price-earnings ratio and explain how it is used in the analysis of a company's financial condition.
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290. The comparative financial statements for Catch Corp are presented below:
Calculate pledged assets to secured liabilities for Year 2.
291. Income statement information for calendar 2015 for Sweet Treat Corp is presented below:
Calculate times interest earned for 2015.
292. Templeton Corporation has the following balance sheet:
Calculate the current ratio and the acid-test.
269. Explain the gross margin ratio and discuss its use as an indicator of profitability.
270. Explain how inventory management is evaluated using the merchandise turnover and days' sales in inventory ratios.
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316. The common goal of users of financial statements in evaluating a company's performance includes evaluation of (1) __________________, (2) _________________, and (3) ___________________.
317. General-purpose financial statements include the (1) _________________, (2) ________________, (3) _______________________ (4) __________________ and (5) ____________________.
318. The standards for comparisons in financial statement analysis include (1).
299. The following information refers to Annie's Attic and competitors in the antiques business.
Based on this information, comment on the relative liquidity positions of the three companies.
300. Annies Attick reported the following information for December 31.
(1) Explain the purpose of the acid-test ratio.
(2) Calculate the acid-test ratio.
(3) What does the.
257. For the following items, calculate trend percentages using 2011 as the base year. (round to nearest percentage):
258. The Laughter Company had the following comparative income statements for Year 1 and Year 2. What are the cost of goods sold in common-size percentages for Year 1 and Year 2, respectively?.
296. The following is selected information for the Keeper Corp:
Calculate the following (round to the second decimal):
(a) Profit margin.
(b) Total asset turnover.
(c) Return on total assets.
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277. Explain the pledged assets to secured liabilities ratio and how it is used in the analysis of a company's financial condition.
278. Explain return on total assets and how it is used to measure a company's financial performance.
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271. What is the purpose of the days' sales uncollected ratio?
272. Discuss the purpose of the accounts receivable turnover ratio and explain how it is calculated.
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260. The comparative balance sheet for Seasons Corp is shown below. Express the balance sheet in common-size percentages. (Round all percentages to two decimals)
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288. Select comparative financial data information for Russian Corp is presented below:
(a) Calculate return on total assets for Year 2.
(b) Calculate return on common shareholders' equity for Year 2.
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254. The comparative income statement for Turcza Manufacturing is shown below:
Calculate trend percentages for all income statement amounts shown. Use 2013 as the base year.
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26. Vertical analysis is used to reveal patterns in data covering successive periods.
27. Vertical analysis is a tool to evaluate individual financial statement items or group of items in terms of a specific base amount.
28. The base amount for a common-size balance sheet is usually total assets.
29. An advantage of.
262. Express the following income statement information in common-size percentages (round to nearest full percentage) and evaluate the situation shown as favourable or unfavourable.
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273. Explain how to calculate total asset turnover and explain what it reveals about a company's financial condition.
274. Explain how to calculate the times interest earned ratio and how it is used to analyze a company.
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245. On January 1, BPA Corporation had 250,000 common shares outstanding, issued for $500,000, and retained earnings of $100,000. On January 1, BPA declared a 35% share dividend to holders of record on January 15, to be distributed on January 25. Fair market value of BPA common shares on January.
295. The following is selected information for Mercury Corp:
Calculate the following:
(a) Accounts receivable turnover.
(b) Merchandise turnover.
(c) Days' sales uncollected.
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293. Selected balances from Nowland Corporation's records are as follows:
Use the information presented above to calculate the following for year 2:
(A) Merchandise turnover.
(B) Days' sales in inventory.
(C) Profit margin.
(D) Return on total assets.
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298. The following information pertains to Z-Mart, its competition, and the industry standards.
The industry standard for the current ratio is 1.8 to 1, and for the acid-test ratio, 1 to 1. Instructions:
(1) Calculate the current ratio and quick ratio for each firm.
(2) Rank the firms in decreasing order of liquidity.
(3).
36. Because debt can have the effect of increasing the return to shareholders, the use of debt is sometimes described as financial leverage.
37. The larger the times interest earned ratio, the greater the risk a company incurs.
38. Return on total assets is a profitability measure.
39. Kreuger Corp has earnings per.
31. Seinfield Corporation had cash of $16,000 and total assets of $178,300. The common-size percent for cash was 7.85%.
32. Ratios can be expressed as a percent, rate, or proportion.
33. Ratios, like other analytical tools, are usually historically oriented.
34. Liquidity refers to the availability of resources to meet short-term cash requirements.
35..
312. SportsWorld had income before interest and income tax expense of $395,000 in Year 1 and $427,000 in Year 2. Its interest expense was $125,000 for both years. Calculate the times interest earned ratio for both years and comment on the company's level of risk.
313. Harmony Inc. had net income.
326. Profit margin = _____________ divided by sales.
327. A current ratio of 1.1 suggests that a company has ____________ current assets to cover current liabilities.
328. The acid-test ratio measures the _______________ of a firm.
329. The gross margin ratio equals net sales less _______________ divided by net sales.
330. The ____________________ ratio.
301. Using the following information, calculate the gross profit ratio for each of the following situations:
302. The following information for Z-Mart is for the month of November:
Instructions: Calculate Z-Mart's gross margin ratio.
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259. Express the following income statement information in common-size percentages and in trend percentages using Year 1 as the base year (round to nearest percentage):
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297. The following information is from Omar Corp balance sheets as of December 31, Years 2 and 1 and income statement for Year 2:
From the above information, calculate the following for Year 2:
(a) Merchandise turnover.
(b) Accounts receivable turnover.
(c) Return on total assets.
(d) Times interest earned.
(e) Total asset turnover.
.
294. Given the following information from the current financial statements of Arbonne Corp, calculate the ratios listed below the financial statements.
(A) Current ratio.
(B) Accounts receivable turnover.
Assume the beginning of year accounts receivable balance was $59,500.
(C) Days' sales uncollected.
(D) Merchandise turnover.
Assume the beginning of year merchandise inventory was $50,200.
(E) Times interest.
304. Trekking Company reported the following data:
(1) Calculate Trekking Company's merchandise turnover for each year.
(2) Comment on the company's efficiency in managing its inventory.
305. Annie's Attic reported the following data:
Instructions:
(1) Calculate the days' sales in inventory for each year.
(2) Comment on the trend in inventory management.
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279. Calculate the following ratios for Packing Corp for Year 2 (round to two decimals, e.g. 12.34, 34.56%):
(a) Current ratio.
(b) Acid-test ratio.
(c) Debt ratio.
(d) Equity ratio.
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280. Information from the current income statement of Beckwith Corp follows:
281. Information from the current income statement of Coffey Corp follows:
If the company's January 1, accounts receivable were $78,000 and its December 31, accounts receivable were $90,000, what was the company's accounts receivable turnover?
282. Information from the current income statement.
315. Halifax Company had net income of $37,843 in Year 1 and $43,876 in Year 2. Its net sales were $319,483 in Year 1 and $305,415 in Year 2. Its average total assets in Year 1 were $334,890 and $356,132 in Year 2. Calculate the profit margin, total asset turnover,.
321. Hasbro had net sales of $7,875 and average accounts receivable of $1,350. Its accounts receivable turnover was _____________.
322. Return on common shareholders' equity _______________ when the expected rate of return from new assets is greater than the rate of interest on the related debt.
323. Secured creditors of a company.
314. Micron Company had net income for Year 1 of $47,950 and $53,425 in Year 2. The company had net sales of $363,250 in Year 1 and $392,750 in Year 2. The company's average total assets in Year 1 were $942,550 and $877,560 in Year 2. Calculate Micron's profit margin,.
309. SportsWorld had net sales of $230,000 for Year 1 and $276,000 for Year 2. Its average total assets for Year 1 were $150,000 and $180,000 for Year 2. Calculate the total asset turnover for each year and comment on the firm's efficiency in the use of its assets.
310. Xtreme.
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248. Phoenix Corp had net income of $145,500, net sales of $1,379,690, and average total assets of $1,026,650. Calculate the profit margin, total asset turnover, and return on total assets.
249. Explain the purpose of financial statement analysis.
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306. Outdoors Unlimited had net sales of $285,000 for Year 1, and $575,000 for Year 2. The year-end balances of accounts receivable were $49,000 for Year 1, and $85,000 for Year 2. Calculate the days' sales uncollected at the end of each year and describe any changes in the apparent.
252. Describe horizontal financial statement analysis.
253. A company's sales in Year 1 were $460,000. Sales in Year 2 were $483,200. Using Year 1 as the base year, what is the trend percentage for Year 2?
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289. The latest balance sheet for Free Throw Corp shows:
(a) Calculate the current ratio for Free Throw.
(b) Calculate the amount of Free Throw's working capital.
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286. The following financial data relates to Eighteen Corp, which has pledged all of its property, plant and equipment as security for its long-term notes payable:
Calculate the following ratios:
(A) Percentage of capital contributed by owners. (Equity ratio.)
(B) Pledged assets to secured liabilities.
(C) Times interest earned.
287. Comparative financial data for Assembly.
303. The following information is for Z-Mart and its competition Diablo.
Instructions:
(1) Calculate the dollar amount of gross margin and the gross margin ratio for each company for both years.
(2) Which company had the more favourable ratio each year?
(3) Which company had the more favourable trend over the 2-year period?
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265. Explain the debt ratio and its use in analyzing a company's performance.
266. Explain the profit margin ratio and discuss its use in analyzing a company's performance.
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283. The Marr Corp had net income of $75,000 and 25,000 common shares outstanding throughout the year. On December 31, the shares of Marr sold for $43.50. What is Marr's price-earnings ratio?
284. The South Alberta Corp had income tax expense of $40,000 and net income after taxes of $220,000 for.
21. Comparative financial statements are reports where financial amounts are placed side by side in columns on a single statement for analysis purposes.
22. Comparative analysis is used to reveal patterns in data covering successive periods.
23. A trend percent is calculated by dividing the analysis period amount by the base period.
267. Explain the current ratio. Describe how it is used to evaluate a company.
268. Explain the use of the acid-test ratio as a measure of a company's liquidity.
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308. The following is from the financial statements of Exquisite Ensembles:
Calculate Exquisite Ensembles' accounts receivable turnover for Years 2 and 3. Compare the two results and give a possible explanation for any significant change.
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