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Q6Compute gross profit margin (Gross profit / Sales revenue) for fiscal years ended: 9-25-2010 _________;     9-26-2009 _________;     9-27-2008 _________;     9-29-2007     33.97% During this time period the gross profit margin (increased / decreased), which is a(n) (favorable / unfavorable) trend. What does this trend indicate? Q7Compute the Return on Sales (Net income /.
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Q1Refer to the EPS information immediately above. Even though Wagdy Company reports (greater / lower) EPS, both companies have (the same / different) net income. A company with greater EPS (does / does not) indicate greater profitability. Q2If Athar Company buys back 1 million shares of common stock, then treasury stock.
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Q3Refer to the EPS information immediately above. EPS for Athar Company has a/an (increasing / decreasing) trend, whereas Wagdy Company has a/an (increasing / decreasing) trend. EPS (can / cannot) be more meaningful when compared over time. Athar Company     EPS  =  $0.50 Wagdy Company     EPS  =  $2.00 Market Price  =   $6/share  = PE.
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Q3Compute ROS (Net income / Sales revenue) for fiscal years ended on: 10/31/2010 _________;   10/31/2009 _________   10/31/2008 _________   10/31/2007 _________ The trend is (increasing / decreasing / steady), which is (favorable / unfavorable / neutral). Q4Review all of the information presented above. If you had $10,000, would you consider investing in this company? .
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Q1Compute gross profit, gross profit margin, net income, and the return on sales ratio for each corporation. Record the amounts in the appropriate space above. Q2Analyze the financial attributes of the three corporations by circling the corporation with… a.the lowest GP%CORP (_________  /  B  /  C) b.significant R&D expenseCORP (A  /  _________  / .
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Q2The greatest amount of sales revenue was reported by (LNVGY/ DELL / HPQ) and the greatest net income was reported by (LNVGF / DELL / HPQ), which would be (expected / unexpected). Q3The company that reported the highest ratio for: a.Gross profit margin?(LNVGY / DELL / HPQ) b.Operating income as a percentage of.
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Q3What is the greatest expense for this company? (COGS / SGA expense / provision for income tax). What typical costs might be included in this expense? \ Q4Let’s compare some trends in the data: a.From 9/29/2007 to 9/25/2010, Sales Revenue (decreased / more than doubled / tripled). b.From 9/29/2007 to 9/25/2010, COGS (decreased /.
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Q3Assume that AEO issued 1 million shares of preferred stock with a dividend rate of $5 per share. a.Preferred shareholders would expect to receive $5 million in dividends each year. b.(Preferred / Common) shareholders always receive their dividends first; this is part of the “preferred” treatment. Therefore, if the Board of Directors.
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Q1Study the Statement of Stockholders’ Equity for the five years presented. a.During fiscal year ended (FYE) 6/30/2003 stockholders’ equity increased primarily as a result of (net income / issuing common stock / repurchasing common stock / paying dividends). b.During FYE 6/30/2004 stockholders’ equity (increased / decreased) primarily as a result of (net.
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Q5In the Primary Driver chart above: a.Circle the Primary Driver of ROA as either ROS or Asset Turnover. b.Circle the Primary Driver of ROE as either ROA, Financial Leverage, or of approximately equal (=) contribution. Q6Using only the financial information above, which company would you prefer to invest in? (YHOO / COST / CAT) .
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Q3Compute common-size percentages during 2010 and 2008 for the amounts below. 2010 2008 Sales revenue _________ _________ COGS _________ _________ Gross profit _________ _________ Operating expenses _________ _________ Operating income _________ _________ Q4Review all of the information presented above. Lenovo Group appears to report a (strengthening / steady / weakening) operating position. Why?  Support your response with at least two observations. .
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Q7What is the primary driver of ROE when the debt ratio is: a.Less than 50%?(ROA / = / LEV) b.Equal to 50%?(ROA / = / LEV) c.Greater than 50%?(ROA / = / LEV) DUPONT ANALYSIS of ROE Formula CORP A CORP B CORP C CORP D CORP E Sales revenue $    100 $   100 $    100 $    100 $    100 Net income 10 10 10 10 10 Assets 100 100 100 100 100 Liabilities 0 25 50 75 96 Stockholders’ equity $    100 $     75 $      50 $      25 $        .
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Q3Study the Income Statement for the five years presented. From 6/30/2003 to 6/30/2007 revenues (increased / decreased), net income (increased / decreased), and EPS (increased / decreased). Q4a.During FYE (6-30-2004 / 6-30-2005 / 6-30-2006) Microsoft paid a huge special one-time $3 per share dividend totaling $36,968 billion. To pay this dividend,.
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Q2Study the Balance Sheet for the five years presented. a.During FYE 6/30/2005 cash equivalents (increased / decreased) significantly as a result of (a net loss / repurchasing common stock / paying dividends). b.During FYE 6/30/2006 cash equivalents (increased / decreased) primarily as a result of (a net loss / repurchasing common stock.
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Q5When preparing financial statements, use the following rules for placing parentheses. ?Accounts that are typically added or that can either be added or subtracted to compute net income … use no parentheses when added and parentheses when subtracted. ?Accounts that are typically subtracted to compute net income … use no parentheses when.
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Q1Since 10/31/2007, sales revenue growth was _________ million, which is a _________ change in sales revenue. The annual revenue growth rate can be compared between companies. Assume less than 5% is low, 5 to 15% is moderate, and more than 15% is high The three-year average revenue growth rate is considered (low.
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Q1From 9/29/2007 to 9/25/2010 sales revenues (increased / decreased), indicating the company is (competitive within its industry / successful at controlling costs / well managed). Q2 Cost of goods sold (COGS) is a(n) (revenue / expense / asset / liability) account that totaled what amount for fiscal year ended … 9/25/2008? _________ million   .
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Q1For fiscal year ended on January 28, 2012 for AEO: Beginning Retained Earnings, (January 29/ January 28), 2011               $1,711,929 thousand +  Net income 151,705 thousand -   Dividends  (87,909) thousand -   Other     (4,261) thousand =  Ending Retained Earnings, January 28, 2012$1,771,464 thousand Q2On January 28, 2012 stockholders’ equity totaled $1,416,851 thousand, which is the amount of business assets.
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Q1Prepare a trend analysis of Sales Revenue for all four years: Fiscal year ended March 31 2010 2009 2008 2007 Sales revenue _________ _________ _________ _________ The greatest increase took place in (2010 / 2009 / 2008). What are some likely reasons for this increase?     Q2The greatest expense is (COGS / SGA / R&D) followed by (COGS / SGA / R&D)..
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Q4The company that reported the greatest percentage of expense for: a.COGS(LNVGY/ DELL / HPQ), which is considered (favorable / unfavorable). Why? b.SGA(LNVGY/ DELL / HPQ), which is considered (favorable / unfavorable). Why? c.R&D(LNVGY/ DELL / HPQ), which is considered (favorable / unfavorable). Why? Q5During 2010, (LNVGF / DELL / HPQ) remained the #1 direct-sale.
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Q1For Lenovo and Hewlett Packard companies listed below, complete the common-size statements by dividing each item on the income statement by sales revenue. Record the resulting common-size percentage in the shaded area provided. Lenovo DELL Hewlett Packard (LNVGY) (DELL) (HPQ) Fiscal year ended 3/31/2010 1/30/2011 10/31/2010 ($ in millions) Amount CS% Amount CS% Amount CS% Sales revenue $ 16,605 _________ $ 61,494 100.0% $ 126,033 _________ COGS 14,815 _________ 50,098 81.5% 96,089 _________ Gross profit 1,790 _________ 11,396 18.5% 29,944 _________ Selling, Gen , Adm exp 1,406 _________ 7,234 11.9% 12,585 _________ Research and dev 214 _________ 657 1.0% 2,959 _________ Other expenses 34 _________ 0 --% 2,921 _________ Operating income 136 _________ 3,505 5.5% 11,479 _________ Nonoperating rev (exp) +.
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Q1Refer to the EPS information immediately above. Even though Wagdy Company reports (greater / lower) EPS, both companies have (the same / different) net income. A company with greater EPS (does / does not) indicate greater profitability. Q2If Athar Company buys back 1 million shares of common stock, then treasury stock.
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Q3Kiger Kayaking, a sporting goods retailer, began operations on August 1 with the following transactions during the first month of operation. Compute August net income (using accrual-based accounting) and the August 31 cash balance. Accrual Cash _________ _________ Aug 1 Paid August office rent of $4,000. _________ _________ Aug 5 Purchased and paid $32,000 for merchandise inventory. _________ _________ Aug 16 Sold merchandise for.
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Q3Refer to the EPS information immediately above. EPS for Athar Company has a/an (increasing / decreasing) trend, whereas Wagdy Company has a/an (increasing / decreasing) trend. EPS (can / cannot) be more meaningful when compared over time. Athar Company     EPS  =  $0.50 Wagdy Company     EPS  =  $2.00 Market Price  =   $6/share  = PE.
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Q8When comparing companies within the same industry, it is best to compare (Operating Income / Income from Continuing Operations / Net Income).  Why? _________Q9In this accounting period BLOOMIN’ FLOWERS, a florist shop, purchased flowers from a wholesaler costing $24,000 and sold them to customers for $32,000. Wages and other operating expenses.
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Q5A Times Interest Earned ratio greater than 4 generally indicates the ability to make interest payments. Companies within the Apparel Store Industry, on average, (have / don’t have) the ability to make interest payments. Q6The higher EPS is reported by (AEO / URBN), indicating (AEO / URBN / can’t tell) is.
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Q3Use the descriptions below to identify each corporation using their financial information. ANHEUSER-BUSCH INBEV (BUD) is a publicly-traded company based in Leuven, Belgium. It is the leading global brewer and one of the world’s top five consumer products companies. A true consumer-centric, sales-driven company, Anheuser-Busch InBev manages a portfolio of nearly.
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Q5For each of the following events, identify the effect on stockholders’ equity. a.Net income (increases / decreases / has no effect on) stockholders’ equity. b.Cash dividends (increase / decrease / have no effect on) stockholders’ equity. c.Repurchase of treasury stock (increases / decreases / has no effect on) stockholders’ equity. d.Reissue of treasury stock.
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Q1For AEO the Par Value account is titled (Common Stock / Contributed Capital) and is $0.01 per share, while the Additional Paid-in-Capital account is titled (Common Stock / Contributed Capital). Q2On January 29, 2011 $2,496 thousand was reported as Common Stock (Par) and $546,597 thousand reported as Contributed Capital (APIC) for.
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Q1Review Corporations A through E on page 113. All corporations have the same amount of (Sales revenue / Net income / Assets / Liabilities / Stockholders’ equity), but different amounts of (Sales revenue / Net income / Assets / Liabilities / Stockholders’ equity). Corp A has the (least / greatest).
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Across 4.Ratio measuring how expensive a company’s stock price is compared to EPS (2 words) 6.Shares bought back from investors 7.Solvency ratio that measures how debt boosts ROA to increase ROE (2 words) 10.If three-for-one, an investor holding 100 shares before holds 300 shares after (2 words) 11.Internal financing (2 words) 12.First time sale of stock.
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Q1Use the information below for J.C. Penney and Intel to answer the following questions. FYE 2010 ($ in millions) J.C. Penney Corp (JCP) Intel(INTC) Sales revenue $ 17,759 $ _________ Expense _________ 32,159 Net income $ 389 $ 11,464 ROS _________ _________ a.Calculate the values for (A) and (X). Revenue for INTC is more than (2 times / 10 times) greater than revenue for JCP, whereas net income for INTC.
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