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51- The Problems with Financial Statement Analysis: (..).

A) Difficult to make accurate estimates of sales.

B) Ignorance of users.

C) All of the above

52- The financial statements are used by investors, market analysts and creditors to assess the financial health of the company and its potential profits by: (..).

A) The balance sheet.

B) Income statement.

C- Statement of cash flows.

D) All of the above

53- External financial reporting includes financial statements, financial summaries, and related. This information is typically used by: (..).

A) Creditors.

B) Lenders.

C) Investors.

D) All of the above

54- A firm has sales of $22,400, net income of $3,600, net fixed assets of $18,700, inventory of$2,800, and total current assets of $6,300. What is the common-size statement value of inventory?.

A. 10.07%

B. 13.67%

C. 11.20%

D. 12.50%.

E. 9.84%

55- A firm has sales of $38,900, net income of $2,400, total assets of $43,100, and total equity of$24,700. Interest expense is $830. What is the common-size statement value of the interest expense?

A. 2.13%

B. 3.08%

C. 1.93%

D. 2.49%

E. 3.46%

56- Jessica's Boutique has cash of $218, accounts receivable of $457, accounts payable of $398, and inventory of $647. What is the value of the quick ratio?

A. .55

B. 1.05

C. 1.70

D. 1.32

E. 1.52

57- Brownings has a debt-equity ratio of .47. What is the equity multiplier?

A. 1.47

B. .53

C. 2.13

D. 1.13

E. 1.53

58- Cado Industries has total debt of $6,800 and a debt-equity ratio of .36. What is the value of the total assets?

A. $18,889

B. $24,480

C. $23,520

D. $25,689

E. $25,360

59- Wybros Markets has sales of $684,000, costs of $437,000, interest paid of $13,800, total assets of $712,000, and depreciation of $109,400. The tax rate is 35 percent and the equity multiplier is 1.6. What is the return on equity?

A. 11.30%

B. 13.92%

C. 7.06%

D. 15.48%

E. 18.08%

60- Rosita's Resources paid $11,310 in interest and $16,500 in dividends last year. The times interest earned ratio is 2.9, the depreciation expense is $7,900, and the tax rate is 35 percent. What is the value of the cash coverage ratio?

A. 3.71

B.2.58

C. 3.60

D. 2.78

E. 3.10

61- Discount Mart has $876,400 in sales. The profit margin is 3.8 percent. There are 32,500 shares of stock outstanding. The market price per share is $21.60. What is the price-earnings ratio?

A. 23.40

B. 22.60

C. 19.21

D. 21.08

E. 18.47

62- Samuelson's has sales of $317,000, a profit margin of 8.6 percent, an equity multiplier of 1.8, and total debt of $144,400. What is the return on equity?

A. 15.48%

B. 14.46%

C. 7.05%

D. 15.10%

E. 11.25%

63- A firm has a return on equity of 16.2 percent, a debt-equity ratio of 44 percent, a capital intensity ratio of 1.08, a current ratio of 1.25, and current assets of $138,000. What is the profit margin?

A. 12.15%

B. 9.72%

C. 7.48%

D. 15.19%

E. 13.69%

64- What is the current ratio for 2015?

image text in transcribed

A. 1.95

B. .95

C. 2.06

D. 1.98

E. .98

65- What are the days' sales in inventory for 2015? (Use ending inventory)

image text in transcribed

A. 61.84 days

B. 62.79 days

C. 67.51 days

D. 42.97 days

E. 40.08 days.

66- What is the equity multiplier for 2015?

image text in transcribed

A. 1.48

B. 1.28

C. 1.66

D. 2.13

E. 2.99

67- What is the cash coverage ratio for 2015?

image text in transcribed

A. 11.06

B. 6.02

C. 13.79

D. 14.89

E. 8.78

68- What are the values of the three components of the DuPont identity for 2015?

image text in transcribed

A. 7.91%; 1.0248; 1.4806

B. 8.57%; 1.0248; .6754

C. 7.91%; .9758; 1.4806

D. 11.43%; .9758; .6754

E. 11.43%; 1.0248; 1.4806

69- Deep Falls Timber stock sold for $6.50 a share as of 2015. What was the price-earnings ratio at that time?

image text in transcribed

A. 17.12

B. 29.94

C. 12.82

D. 28.15

E. 19.64

70- Deep Falls Timber stock sold for $6.50 a share as of 2015. What was the price-earnings ratio at that time?

image text in transcribed

A. 17.12

B. 29.94

C. 12.82

D. 28.15

E. 19.64

Deep Falls Timber 2015 Income Statement $642.100 Net sales Cost of goods sold Depreciation EBIT Interest Taxable income Taxes Net income Dividends 409,800 138,400 $ 93,900 15,600 $ 78,300 27,500 $ 50,800 $12,700 Deep Falls Timber Balance Sheets as of December 31, 2014 and 2015 2014 Cash Accounts receivable 2015 $ 32,300 50,700 70,500 $ 46,900 58,300 75,800 2015 $ 58,900 20,000 134,700 2014 | $ 61,200 30,000 164,500 Inventory ory Accounts payable Notes payable Long-term debt Common stock and paid-in surplus ($1 par value) Retained earings Total liabilities & owners' equity Net fixed assets 504,500 461,000 wue) 220,000 224,400 200,000 186,300 Total assets $658,000 $642,000 $658,000 $642,000 Deep Falls Timber 2015 Income Statement $642.100 Net sales Cost of goods sold Depreciation EBIT Interest Taxable income Taxes Net income Dividends 409,800 138,400 $ 93,900 15,600 $ 78,300 27,500 $ 50,800 $12,700 Deep Falls Timber Balance Sheets as of December 31, 2014 and 2015 2014 Cash Accounts receivable 2015 $ 32,300 50,700 70,500 $ 46,900 58,300 75,800 2015 $ 58,900 20,000 134,700 2014 | $ 61,200 30,000 164,500 Inventory ory Accounts payable Notes payable Long-term debt Common stock and paid-in surplus ($1 par value) Retained earings Total liabilities & owners' equity Net fixed assets 504,500 461,000 wue) 220,000 224,400 200,000 186,300 Total assets $658,000 $642,000 $658,000 $642,000 Deep Falls Timber 2015 Income Statement $642.100 Net sales Cost of goods sold Depreciation EBIT Interest Taxable income Taxes Net income Dividends 409,800 138,400 $ 93,900 15,600 $ 78,300 27,500 $ 50,800 $12,700 Deep Falls Timber Balance Sheets as of December 31, 2014 and 2015 2014 Cash Accounts receivable 2015 $ 32,300 50,700 70,500 $ 46,900 58,300 75,800 2015 $ 58,900 20,000 134,700 2014 | $ 61,200 30,000 164,500 Inventory ory Accounts payable Notes payable Long-term debt Common stock and paid-in surplus ($1 par value) Retained earings Total liabilities & owners' equity Net fixed assets 504,500 461,000 wue) 220,000 224,400 200,000 186,300 Total assets $658,000 $642,000 $658,000 $642,000 Deep Falls Timber 2015 Income Statement $642.100 Net sales Cost of goods sold Depreciation EBIT Interest Taxable income Taxes Net income Dividends 409,800 138,400 $ 93,900 15,600 $ 78,300 27,500 $ 50,800 $12,700 Deep Falls Timber Balance Sheets as of December 31, 2014 and 2015 2014 Cash Accounts receivable 2015 $ 32,300 50,700 70,500 $ 46,900 58,300 75,800 2015 $ 58,900 20,000 134,700 2014 | $ 61,200 30,000 164,500 Inventory ory Accounts payable Notes payable Long-term debt Common stock and paid-in surplus ($1 par value) Retained earings Total liabilities & owners' equity Net fixed assets 504,500 461,000 wue) 220,000 224,400 200,000 186,300 Total assets $658,000 $642,000 $658,000 $642,000 Deep Falls Timber 2015 Income Statement $642.100 Net sales Cost of goods sold Depreciation EBIT Interest Taxable income Taxes Net income Dividends 409,800 138,400 $ 93,900 15,600 $ 78,300 27,500 $ 50,800 $12,700 Deep Falls Timber Balance Sheets as of December 31, 2014 and 2015 2014 Cash Accounts receivable 2015 $ 32,300 50,700 70,500 $ 46,900 58,300 75,800 2015 $ 58,900 20,000 134,700 2014 | $ 61,200 30,000 164,500 Inventory ory Accounts payable Notes payable Long-term debt Common stock and paid-in surplus ($1 par value) Retained earings Total liabilities & owners' equity Net fixed assets 504,500 461,000 wue) 220,000 224,400 200,000 186,300 Total assets $658,000 $642,000 $658,000 $642,000 Deep Falls Timber 2015 Income Statement $642.100 Net sales Cost of goods sold Depreciation EBIT Interest Taxable income Taxes Net income Dividends 409,800 138,400 $ 93,900 15,600 $ 78,300 27,500 $ 50,800 $12,700 Deep Falls Timber Balance Sheets as of December 31, 2014 and 2015 2014 Cash Accounts receivable 2015 $ 32,300 50,700 70,500 $ 46,900 58,300 75,800 2015 $ 58,900 20,000 134,700 2014 | $ 61,200 30,000 164,500 Inventory ory Accounts payable Notes payable Long-term debt Common stock and paid-in surplus ($1 par value) Retained earings Total liabilities & owners' equity Net fixed assets 504,500 461,000 wue) 220,000 224,400 200,000 186,300 Total assets $658,000 $642,000 $658,000 $642,000 Deep Falls Timber 2015 Income Statement $642.100 Net sales Cost of goods sold Depreciation EBIT Interest Taxable income Taxes Net income Dividends 409,800 138,400 $ 93,900 15,600 $ 78,300 27,500 $ 50,800 $12,700 Deep Falls Timber Balance Sheets as of December 31, 2014 and 2015 2014 Cash Accounts receivable 2015 $ 32,300 50,700 70,500 $ 46,900 58,300 75,800 2015 $ 58,900 20,000 134,700 2014 | $ 61,200 30,000 164,500 Inventory ory Accounts payable Notes payable Long-term debt Common stock and paid-in surplus ($1 par value) Retained earings Total liabilities & owners' equity Net fixed assets 504,500 461,000 wue) 220,000 224,400 200,000 186,300 Total assets $658,000 $642,000 $658,000 $642,000 Deep Falls Timber 2015 Income Statement $642.100 Net sales Cost of goods sold Depreciation EBIT Interest Taxable income Taxes Net income Dividends 409,800 138,400 $ 93,900 15,600 $ 78,300 27,500 $ 50,800 $12,700 Deep Falls Timber Balance Sheets as of December 31, 2014 and 2015 2014 Cash Accounts receivable 2015 $ 32,300 50,700 70,500 $ 46,900 58,300 75,800 2015 $ 58,900 20,000 134,700 2014 | $ 61,200 30,000 164,500 Inventory ory Accounts payable Notes payable Long-term debt Common stock and paid-in surplus ($1 par value) Retained earings Total liabilities & owners' equity Net fixed assets 504,500 461,000 wue) 220,000 224,400 200,000 186,300 Total assets $658,000 $642,000 $658,000 $642,000 Deep Falls Timber 2015 Income Statement $642.100 Net sales Cost of goods sold Depreciation EBIT Interest Taxable income Taxes Net income Dividends 409,800 138,400 $ 93,900 15,600 $ 78,300 27,500 $ 50,800 $12,700 Deep Falls Timber Balance Sheets as of December 31, 2014 and 2015 2014 Cash Accounts receivable 2015 $ 32,300 50,700 70,500 $ 46,900 58,300 75,800 2015 $ 58,900 20,000 134,700 2014 | $ 61,200 30,000 164,500 Inventory ory Accounts payable Notes payable Long-term debt Common stock and paid-in surplus ($1 par value) Retained earings Total liabilities & owners' equity Net fixed assets 504,500 461,000 wue) 220,000 224,400 200,000 186,300 Total assets $658,000 $642,000 $658,000 $642,000 Deep Falls Timber 2015 Income Statement $642.100 Net sales Cost of goods sold Depreciation EBIT Interest Taxable income Taxes Net income Dividends 409,800 138,400 $ 93,900 15,600 $ 78,300 27,500 $ 50,800 $12,700 Deep Falls Timber Balance Sheets as of December 31, 2014 and 2015 2014 Cash Accounts receivable 2015 $ 32,300 50,700 70,500 $ 46,900 58,300 75,800 2015 $ 58,900 20,000 134,700 2014 | $ 61,200 30,000 164,500 Inventory ory Accounts payable Notes payable Long-term debt Common stock and paid-in surplus ($1 par value) Retained earings Total liabilities & owners' equity Net fixed assets 504,500 461,000 wue) 220,000 224,400 200,000 186,300 Total assets $658,000 $642,000 $658,000 $642,000 Deep Falls Timber 2015 Income Statement $642.100 Net sales Cost of goods sold Depreciation EBIT Interest Taxable income Taxes Net income Dividends 409,800 138,400 $ 93,900 15,600 $ 78,300 27,500 $ 50,800 $12,700 Deep Falls Timber Balance Sheets as of December 31, 2014 and 2015 2014 Cash Accounts receivable 2015 $ 32,300 50,700 70,500 $ 46,900 58,300 75,800 2015 $ 58,900 20,000 134,700 2014 | $ 61,200 30,000 164,500 Inventory ory Accounts payable Notes payable Long-term debt Common stock and paid-in surplus ($1 par value) Retained earings Total liabilities & owners' equity Net fixed assets 504,500 461,000 wue) 220,000 224,400 200,000 186,300 Total assets $658,000 $642,000 $658,000 $642,000 Deep Falls Timber 2015 Income Statement $642.100 Net sales Cost of goods sold Depreciation EBIT Interest Taxable income Taxes Net income Dividends 409,800 138,400 $ 93,900 15,600 $ 78,300 27,500 $ 50,800 $12,700 Deep Falls Timber Balance Sheets as of December 31, 2014 and 2015 2014 Cash Accounts receivable 2015 $ 32,300 50,700 70,500 $ 46,900 58,300 75,800 2015 $ 58,900 20,000 134,700 2014 | $ 61,200 30,000 164,500 Inventory ory Accounts payable Notes payable Long-term debt Common stock and paid-in surplus ($1 par value) Retained earings Total liabilities & owners' equity Net fixed assets 504,500 461,000 wue) 220,000 224,400 200,000 186,300 Total assets $658,000 $642,000 $658,000 $642,000 Deep Falls Timber 2015 Income Statement $642.100 Net sales Cost of goods sold Depreciation EBIT Interest Taxable income Taxes Net income Dividends 409,800 138,400 $ 93,900 15,600 $ 78,300 27,500 $ 50,800 $12,700 Deep Falls Timber Balance Sheets as of December 31, 2014 and 2015 2014 Cash Accounts receivable 2015 $ 32,300 50,700 70,500 $ 46,900 58,300 75,800 2015 $ 58,900 20,000 134,700 2014 | $ 61,200 30,000 164,500 Inventory ory Accounts payable Notes payable Long-term debt Common stock and paid-in surplus ($1 par value) Retained earings Total liabilities & owners' equity Net fixed assets 504,500 461,000 wue) 220,000 224,400 200,000 186,300 Total assets $658,000 $642,000 $658,000 $642,000 Deep Falls Timber 2015 Income Statement $642.100 Net sales Cost of goods sold Depreciation EBIT Interest Taxable income Taxes Net income Dividends 409,800 138,400 $ 93,900 15,600 $ 78,300 27,500 $ 50,800 $12,700 Deep Falls Timber Balance Sheets as of December 31, 2014 and 2015 2014 Cash Accounts receivable 2015 $ 32,300 50,700 70,500 $ 46,900 58,300 75,800 2015 $ 58,900 20,000 134,700 2014 | $ 61,200 30,000 164,500 Inventory ory Accounts payable Notes payable Long-term debt Common stock and paid-in surplus ($1 par value) Retained earings Total liabilities & owners' equity Net fixed assets 504,500 461,000 wue) 220,000 224,400 200,000 186,300 Total assets $658,000 $642,000 $658,000 $642,000

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