Financial Statement Analysis Questions Utilizing the: Consolidated Statements of Earnings. Consolidated Balance Sheets. Consolidated Statements of Cash Flows, and Consolidated Statements of Stockholders' Equity and Comprehensive Income that have been provided to you with this test, complete questions Q31- Q40. Observe that: Net Income is called Net Earnings Cost of Goods Sold is called Cost of Sales . Amounts in the Financial Statements are in thousands of dollars. Annual Report Formula Sheet 4 pts Question 31 Calculate the Percent change in Gross Profit from fiscal year 2009 to fiscal year 2010. Round the percentage answer to two decimal places. 10.45% 09.46% O 12.80% 11.35% O None of the above D Question 32 4 pts What was the amount of Free Cash Flow for fiscal year 2010? For the numbers needed from the investing section, use "Purchases of property, plant, and equipment" and "Proceeds from asset disposals". Show your answer in thousands of dollars. O $121,661 O $32,113 O $121,087 O $ 31,460 O None of the above Question 33 4 pts Calculate the percentage that would show when Vertical Analysis is applied to the line item Operating Earnings for fiscal year 2011. Round the percentage answer to two decimal places. O 8.95% O 9.79% 33.79% O 6.25% None of the above The Toro Company CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and shares in thousands, except per share data) Fiscal years ended October 31 2011 2010 2009 Net sales $1,883,953 S1,690,378 S1,523,447 Cost of sales 1,247,306 1,113,987 1,012,472 Gross profit 696,647 576,391 510,975 Selling, general, and administrative expense 452,160 425,125 395,778 Operating earnings 184,487 151.266 115,197 Interest expense (16,970) (17,113) (17,578) Other income (expense), net 7,309 7,115 (1,831) Earnings before income taxes 174,826 141,268 95,788 Provision for income taxes 57,168 48,031 32,951 Net earnings $ 117,658 $ 93,237 $ 62,837 Basie net earnings per share of common stock s 3.76 2.835 1.76 Diluted net earnings per share of common stock $ 3.70 S 2.79 $ 1.73 Weighted average number of shares of common stock outstanding - Basic 31,267 32,982 35,788 Weighted average number of shares of common stock outstanding - Diluted 31,797 33,437 36,240 The financial statement should be read in conjunction with the Notes to Consolidated Financial Siemens 41 Red Company Formula Sheet Vertical Analysis of the Income Statement Net Profit Margin - Profitability Accounts Receivable Turnover Ratio Any Line on Income Statement Net Sales Net Income Net Sales Net Sales Average Accounts Receivable, Net Vertical Analysis of the Balance Sheet Total Assets Turnover Ratio - Efficiency Number of Days Soles in Receivables Any Asset Line on Balance Sheet Total Assets Net Sales Average Total Assets 365 Accounts Receivable Turnover Ratio Any Liabilities or Stockholders' Equity Line Total Liabilities and Stockholders' Equity Assets to Equity Ratio - Leverage Inventory Turnover Ratio Horizontal Analysis Average Total Assets Average Total Stockholders' Equity Cost of Goods Sold Average Inventory Current Year Amount - Prior Year Amount Prior Year Amount Return on Equity Number of Days Sales In Inventory Net Income Average Total Stockholders' Equity 365 Inventory Turnover Ratio Working Capital Current Assets Less: Current Liabilities Return on Assets Dividend Payout Net Income Average Total Assets Total Cash Dividends Declared Net Income Current Ratio Current Assets Current Liabilities Free Cash Flow Cash Flow to Net Income Ratio Net Cash Provided by Operating Activities Net Income Net Cash Provided by Operating Activities Less: Net Cash Paid to Purchase Prop, Plant, Equip Less: Cash Dividends Paid