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Exam 15: Financial Statement Analysis

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Question 101

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Lindboe Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $4,800. The market price of common stock at the end of Year 2 was $5.46 per share. Required: a. What is the company's times interest earned for Year 2? b. What is the company's debt-to-equity ratio at the end of Year 2? c. What is the company's equity multiplier at the end of Year 2? d. What is the company's net profit margin percentage for Year 2? e. What is the company's gross margin percentage for Year 2? f. What is the company's return on total assets for Year 2? g. What is the company's return on equity for Year 2?

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a. Times interest earned = Net operating...

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Question 102

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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 equity multiplier at the end of Year 2 is closest to:

A) 0.70
B) 1.43
C) 2.34
D) 0.43

E) All of the above
F) A) and C)

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Question 103

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Abdool Corporation has provided the following financial data: Required: a. What is the company's working capital at the end of Year 2? b. What is the company's current ratio at the end of Year 2? c. What is the company's acid-test (quick) ratio at the end of Year 2? d. What is the company's accounts receivable turnover for Year 2? e. What is the company's average collection period (age of receivables) for Year 2? f. What is the company's inventory turnover for Year 2? g. What is the company's average sale period (turnover in days) for Year 2? h. What is the company's operating cycle for Year 2? i. What is the company's total asset turnover for Year 2?

Garrott Corporation's total assets were $1,505,000 at the end of Year 2 and $1,520,000 at the end of Year 1. Its total stockholders' equity was $1,197,000 at the end of Year 2 and $1,180,000 at the end of Year 1. -The company's return on total assets for Year 2 is closest to:

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

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

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

Dahn Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $1,600. The market price of common stock at the end of Year 2 was $2.37 per share. -The company's average collection period (age of receivables) for Year 2 is closest to:

Garrott Corporation's total assets were $1,505,000 at the end of Year 2 and $1,520,000 at the end of Year 1. Its total stockholders' equity was $1,197,000 at the end of Year 2 and $1,180,000 at the end of Year 1. -The company's return on equity for 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:

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:

Gehlhausen Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $5,600. The market price of common stock at the end of Year 2 was $5.60 per share. Required: a. What is the company's net profit margin percentage for Year 2? b. What is the company's gross margin percentage for Year 2? c. What is the company's return on total assets for Year 2? d. What is the company's return on equity for Year 2?

Dahn Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $1,600. The market price of common stock at the end of Year 2 was $2.37 per share. -The company's accounts receivable turnover for Year 2 is closest to:

The formula for total asset turnover is: Total asset turnover = Total assets ÷ Total stockholders' equity.

Recher Corporation's common stock has a par value of $3 per share and has been stable at a total value of $270,000 on the company's balance sheet for several years. The total stockholders' equity at the end of this year was $1,023,000 and at the beginning of the year was $1,010,000. Net income for the year was $17,500. Dividends on common stock during the year totaled $4,500. The market price of common stock at the end of the year was $3.76 per share. -The company's dividend yield ratio 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:

Excerpts from Candle Corporation's most recent balance sheet (in thousands of dollars) appear below: Sales on account during the year totaled $1,200 thousand. Cost of goods sold was $800 thousand. Required: Compute the following for Year 2: a. Working capital. b. Current ratio. c. Acid-test ratio. d. Accounts receivable turnover. e. Average collection period. f. Inventory turnover. g. Average sale period.

Sabino Corporation's total common stock was $500,000 at the end of both Year 2 and Year 1. The par value of common stock is $5 per share. The company's total stockholders' equity at the end of Year 2 amounted to $1,125,000 and at the end of Year 1 to $1,090,000. The company's total liabilities and stockholders' equity at the end of Year 2 amounted to $1,581,000 and at the end of Year 1 to $1,540,000. The company's retained earnings at the end of Year 2 amounted to $545,000 and at the end of Year 1 to $510,000. The company's net income in Year 2 was $39,000. -The accounts receivable 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?

Rubendall Corporation's total current assets are $310,000, its noncurrent assets are $630,000, its total current liabilities are $250,000, its long-term liabilities are $300,000, and its stockholders' equity is $390,000. Required: Compute the company's current ratio. Show your work!