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Exam 16: Financial Statement Analysis

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Question 121

Multiple Choice

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Sand Company has an acid-test ratio of 0.8. Which of the following actions would improve the acid-test ratio?

A) Collect some accounts receivable.
B) Acquire some inventory on account.
C) Sell some equipment for cash.
D) Use cash to pay off some accounts payable.

E) A) and B)
F) A) and C)

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Question 122

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Ribaudo Corporation has provided the following financial data from its balance sheet and income statement: The company's accounts receivable turnover for Year 2 is closest to:

A) 1.06
B) 5.06
C) 5.21
D) 0.94

E) B) and C)
F) C) and D)

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Question 123

Multiple Choice

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Gnas Corporation's total current assets are $210,000, its noncurrent assets are $590,000, its total current liabilities are $160,000, its long-term liabilities are $490,000, and its stockholders' equity is $150,000. The current ratio is closest to:

Sperle Corporation has provided the following data concerning its stockholders' equity accounts: Net income for Year 2 was $30,400. Dividends on common stock during Year 2 totaled $6,400. The market price of common stock at the end of Year 2 was $3.08 per share.The company's dividend payout ratio for Year 2 is closest to: (Round your intermediate calculations to 2 decimal places.)

Kestner Corporation has provided the following financial data: Required:a. What is the company's accounts receivable turnover for Year 2?b. What is the company's average collection period for Year 2?c. What is the company's inventory turnover for Year 2?d. What is the company's average sale period for Year 2?e. What is the company's operating cycle for Year 2?f. What is the company's total asset turnover for Year 2?

Dratif Corporation's working capital is $60,000 and its current liabilities are $192,000. The corporation's current ratio is closest to:

Lasch Corporation has provided the following financial data from its balance sheet and income statement: The company's equity multiplier at the end of Year 2 is closest to:

Sperle Corporation has provided the following data concerning its stockholders' equity accounts: Net income for Year 2 was $30,400. Dividends on common stock during Year 2 totaled $6,400. The market price of common stock at the end of Year 2 was $3.08 per share.The company's book value per share at the end of Year 2 is closest to:

Burdick Corporation has provided the following financial data from its balance sheet: Sales (all on account) in Year 2 amounted to $1,410,000 and the cost of goods sold was $860,000.The company's operating cycle for Year 2 is closest to: (Round your intermediate calculations to 2 decimal places.)

Natcher Corporation's accounts receivable at the end of Year 2 was $138,000 and its accounts receivable at the end of Year 1 was $144,000. The company's inventory at the end of Year 2 was $142,000 and its inventory at the end of Year 1 was $133,000. Sales, all on account, amounted to $1,395,000 in Year 2. Cost of goods sold amounted to $813,000 in Year 2. The company's operating cycle for Year 2 is closest to: (Round your intermediate calculations to 1 decimal place.)

Guttery Corporation has provided the following financial data from its balance sheet: Sales on account in Year 2 totaled $1,450,000 and cost of goods sold totaled $900,000.The company's total asset turnover for Year 2 is closest to:

Moselle Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $4,200. The market price of common stock at the end of Year 2 was $9.72 per share.Required:a. What is the company's earnings per share for Year 2?b. What is the company's price-earnings ratio for Year 2?c. What is the company's dividend payout ratio for Year 2?d. What is the company's dividend yield ratio for Year 2?e. What is the company's book value per share at the end of Year 2?

Hernande Corporation has provided the following data: The company's earnings per share for Year 2 is closest to:

Irawaddy Company, a retailer, had cost of goods sold of $230,000 last year. The beginning inventory balance was $24,000 and the ending inventory balance was $22,000. The company's average sale period was closest to:

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:

Orem Corporation's current liabilities are $75,000, its long-term liabilities are $225,000, and its working capital is $100,000. If the corporation's debt-to-equity ratio is 0.30, total long-term assets must equal:

A company's current ratio is greater than 1. Purchasing raw materials on credit would:

Rawe Corporation's accounts receivable at the end of Year 2 was $330,000 and its accounts receivable at the end of Year 1 was $282,000. Sales, all on account, amounted to $1,353,000 in Year 2. The company's average collection period for Year 2 is closest to: (Round your intermediate calculations to 2 decimal places.)

Data from Fontecchio Corporation's most recent balance sheet appear below: The corporation's acid-test ratio is closest to:

Hagle Corporation has provided the following financial data: Required:a. What is the company's accounts receivable turnover for Year 2?b. What is the company's average collection period for Year 2?c. What is the company's inventory turnover for Year 2?d. What is the company's average sale period for Year 2?e. What is the company's operating cycle for Year 2?f. What is the company's total asset turnover for Year 2?