FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 13: Analysis of Financial Statements

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 111

Multiple Choice

Review LaterAdd Note

Review Later

Net sales divided by average accounts receivable,net is the:

A) Days' sales uncollected.
B) Average accounts receivable ratio.
C) Current ratio.
D) Profit margin.
E) Accounts receivable turnover ratio.

F) A) and D)
G) C) and D)

Correct Answer

verified

Show Answer

Question 112

True/False

Review LaterAdd Note

Review Later

Comparative financial statements are reports that show financial amounts in side by side columns on a single statement for analysis purposes.

A) True
B) False

Correct Answer

verified

Show Answer

Question 113

Short Answer

Review LaterAdd Note

The income level most likely to continue into the future is commonly referred to as ________.

Match each of the appropriate formulas with correct term. -

How long a company holds inventory before selling it can be measured by dividing cost of goods sold by the average inventory balance to determine the:

Refer to the following selected financial information from Phantom Corp. -Compute the company's inventory turnover for Year 2.

What are the four standards for comparisons in financial analysis? Give an example of each.

A company's sales in Year 1 were $280,000,and its sales in Year 2 were $341,600.Using Year 1 as the base year,what is the sales trend percent for Year 2?

The percent change of a comparative financial statement item is computed by subtracting the base period amount from the analysis period amount,dividing the result by the base period amount and multiplying that result by 100.

A company's calendar-year financial data are shown below.The company had total assets of $339,000 and total equity of $144,400 for the prior year.No additional shares of common stock were issued during the year.The December 31 market price per share is $49.50.Cash dividends of $19,500 were paid during the year.Calculate the following ratios for the company: (a)debt ratio (b)equity ratio (c)debt-to-equity ratio (d)times interest earned (e)total asset turnover

The executive summary of a financial statement analysis report includes the evidential matter,assumptions,and inferences for the report.

________ is a method of analysis used to evaluate individual financial statement items or groups of items in terms of a specific base amount.

In horizontal analysis the percent change is computed by:

Dividing Accounts receivable,net by Net sales and multiplying the result by 365 is the:

Match each of the appropriate formulas with correct term. -

The following information is available for the Starr Corporation: Calculate the company's inventory turnover and its days' sales in inventory.

Identify the financial analysis building block most appropriately associated with each ratio listed below by placing the letter of the building block a through d beside each ratio 1 through 10.Each building block may be used more than once. A.Liquidity and Efficiency B.Solvency C.Profitability D.Market Prospects ________ (1)Price Earnings Ratio ________ (2)Dividend Yield ________ (3)Accounts Receivable Turnover ________ (4)Days' Sales in Inventory ________ (5)Return on Total Assets ________ (6)Equity Ratio ________ (7)Debt Ratio ________ (8)Inventory Turnover ________ (9)Basic Earnings per Share ________ (10)Times Interest Earned

Comparative financial statements in which each individual financial statement amount is expressed as a percentage of a base amount are called:

Standards for comparisons in financial statement analysis do not include:

Stark Company's most recent balance sheet reported total assets of $1.9 million,total liabilities of $0.8 million,and total equity of $1.1 million.Its Debt to equity ratio is: