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Exam 16: Financial Statement Analysis

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Question 161

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Gremel Corporation has provided the following financial data: Required:a. What is the company's working capital?b. What is the company's current ratio?c. What is the company's acid-test (quick) ratio?

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a.Working capital = Current assets − Cur...

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Question 162

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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 yield ratio for Year 2 is closest to: (Round your intermediate calculations to 2 decimal places.)

A) 21.1%
B) 2.6%
C) 1.6%
D) 14.7%

E) None of the above
F) A) and D)

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Question 163

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The formula for the net profit margin percentage is: Net profit margin percentage = Net income ÷ Sales.

Buying inventory in large lots to take advantage of quantity discounts can be responsible for a high inventory turnover ratio.

Freiman Corporation's most recent balance sheet and income statement appear below: The working capital at the end of Year 2 is:

A common-size financial statement is a vertical analysis in which each financial statement account is expressed as a percentage.

Data from Yochem Corporation's most recent balance sheet appear below: Required:Compute the company's acid-test (quick) ratio. Show your work!

Pascarelli Corporation's inventory at the end of Year 2 was $146,000 and its inventory at the end of Year 1 was $175,000. Cost of goods sold amounted to $985,000 in Year 2. The company's average sale period for Year 2 is closest to: (Round your intermediate calculations to 2 decimal places.)

Degollado Corporation's most recent income statement appears below: The beginning balance of total assets was $200,000 and the ending balance was $220,000.Required:Compute the return on total assets. Show your work!

Financial statements for Narstad Corporation appear below: Narstad Corporation's times interest earned ratio for Year 2 was closest to:

The gross margin percentage is equal to:

Settles Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $5,400. The market price of common stock at the end of Year 2 was $5.89 per share.The company's return on equity for Year 2 is closest to:

Freiman Corporation's most recent balance sheet and income statement appear below: The average collection period for Year 2 is closest to: (Round your intermediate calculations to 2 decimal places.)

McRae Corporation's total current assets are $452,000, its noncurrent assets are $554,000, its total current liabilities are $376,000, its long-term liabilities are $304,000, and its stockholders' equity is $326,000. Working capital is:

Orem Corporation's current liabilities are $254,840, its long-term liabilities are $1,327,560, and its working capital is $356,800. If the corporation's debt-to-equity ratio is 0.46, total long-term assets must equal:

Data from Estrin Corporation's most recent balance sheet and income statement appear below: The average sale period for this year is closest to: (Round your intermediate calculations to 2 decimal places.)

Wowk Corporation has provided the following financial data: Required:a. What is the company's working capital?b. What is the company's current ratio?c. What is the company's acid-test (quick) ratio?

During the year just ended, the retailer James Corporation purchased $425,000 of inventory. The inventory balance at the beginning of the year was $175,000. If the cost of goods sold for the year was $450,000, then the inventory turnover for the year was:

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 earnings per share for Year 2 is closest to:

Klein Corporation has provided the following data: The company's equity multiplier is closest to: