Match.... Write the correct letter opposite the number (10 pts) 1. Measures short term debt paying ability 2. Measures immediate short term liquidity 4. Measures liquidity of inventory Measures net income generated by each dollar 6. Measures how efficiently assets are used to generate sales 7. Measures overall profitability of assets 8. Measures profitability of owners' investments 9. Measures net income earned on each share of common stock 10. Measures the ratio of the market price per share to earnings per share of sales a. Price earnings ratio b. Earnings per share c. Current ratio d. Acid test ratio e. Inventory turnover f. Accounts receivable turnover g. Profit margin h. Return on Assts i. Return on owners' equity j. Asset turnover k. Debt to asset ratio Part 2 Answer the following questions 1. Name the 3 commonly used tools to evaluate the significance of financial statement data. (3 pts) 2. Name the 3 financial ratio classifications (3 pts) 3. It is a technique that expresses each financial statement item as a percentage of a base amount. (1 pt) 4. It is a technique for evaluating a series of financial statement data over a period of time (1 pt) 5. It expresses the relationship among selected items of financial statement data. It expresses the mathematical relationship between one quantity and another. (1pt) 6. Using the following data from the comparative balance sheet of Goody Company illustrate horizontal analysis. (6 pts) Dec 31, 2016 400,000 600,000 2,500,000 Dec 31, 2017 520,000 840,000 3,000,000 Accounts receivable Inventory Total assets 7. Using the same data presented above for Goody Company, illustrate vertical analysis. (6 pts) Net income was Php500,000 in 2016, Php450,000 in 2017, and Php522,000 in 2018. What is the percentage of change from (a) 2016 to 2017 and (b) 2017 to 2018? Is the change an increase or a decrease? (4 pts) 8. 9, If S Company had net income of Php585,000 in 2017 and it experienced a 20% increase in net income over 2016, what was its 2016 net income? (2 pts) 10. Horizontal analysis (trend analysis) percentages for Dody Company's sales revenue, cost of goods sold, and expenses are shown below. 2016 100.0% 100.0 100.0 2017 106.8% 97.0 98.4 2018 96.2% 102.0 109.6 Sales revenue Cost of goods sold Expenses Did Dody's net income increase, decrease, or remain unchanged over the 3-year period? (2 pts) 11. Vertical analysis (common size) percentages for K Company's sales revenue, cost of goods sold, and expenses are shown below. 2016 100.0% 63.5 27.5 2018 100.0% 60.2 25.0 2017 100.0% 62.4 25.6 Sales revenue Cost of goods sold Expenses Did K Company's net income as a percentage of sales increase, decrease, or remain unchanged over the 3-year period? Provide numerical support for your answer. (2 pts) 12. Selected condensed data taken from a recent balance sheet of H Inc. are as follows. (3 pts) H INC. Balance Sheet (partial in Pesos) 8,041,000 4,947,000 12,545,000 14,814,000 5,571,000 45,918,000 40,644,000 Cash Short-term investments Accounts receivable Inventory Other current assets Total current assets Total current liabilities What are the (a) working capital, (b) current ratio, and (c) acid-test ratio? END Match.... Write the correct letter opposite the number (10 pts) 1. Measures short term debt paying ability 2. Measures immediate short term liquidity 4. Measures liquidity of inventory Measures net income generated by each dollar 6. Measures how efficiently assets are used to generate sales 7. Measures overall profitability of assets 8. Measures profitability of owners' investments 9. Measures net income earned on each share of common stock 10. Measures the ratio of the market price per share to earnings per share of sales a. Price earnings ratio b. Earnings per share c. Current ratio d. Acid test ratio e. Inventory turnover f. Accounts receivable turnover g. Profit margin h. Return on Assts i. Return on owners' equity j. Asset turnover k. Debt to asset ratio Part 2 Answer the following questions 1. Name the 3 commonly used tools to evaluate the significance of financial statement data. (3 pts) 2. Name the 3 financial ratio classifications (3 pts) 3. It is a technique that expresses each financial statement item as a percentage of a base amount. (1 pt) 4. It is a technique for evaluating a series of financial statement data over a period of time (1 pt) 5. It expresses the relationship among selected items of financial statement data. It expresses the mathematical relationship between one quantity and another. (1pt) 6. Using the following data from the comparative balance sheet of Goody Company illustrate horizontal analysis. (6 pts) Dec 31, 2016 400,000 600,000 2,500,000 Dec 31, 2017 520,000 840,000 3,000,000 Accounts receivable Inventory Total assets 7. Using the same data presented above for Goody Company, illustrate vertical analysis. (6 pts) Net income was Php500,000 in 2016, Php450,000 in 2017, and Php522,000 in 2018. What is the percentage of change from (a) 2016 to 2017 and (b) 2017 to 2018? Is the change an increase or a decrease? (4 pts) 8. 9, If S Company had net income of Php585,000 in 2017 and it experienced a 20% increase in net income over 2016, what was its 2016 net income? (2 pts) 10. Horizontal analysis (trend analysis) percentages for Dody Company's sales revenue, cost of goods sold, and expenses are shown below. 2016 100.0% 100.0 100.0 2017 106.8% 97.0 98.4 2018 96.2% 102.0 109.6 Sales revenue Cost of goods sold Expenses Did Dody's net income increase, decrease, or remain unchanged over the 3-year period? (2 pts) 11. Vertical analysis (common size) percentages for K Company's sales revenue, cost of goods sold, and expenses are shown below. 2016 100.0% 63.5 27.5 2018 100.0% 60.2 25.0 2017 100.0% 62.4 25.6 Sales revenue Cost of goods sold Expenses Did K Company's net income as a percentage of sales increase, decrease, or remain unchanged over the 3-year period? Provide numerical support for your answer. (2 pts) 12. Selected condensed data taken from a recent balance sheet of H Inc. are as follows. (3 pts) H INC. Balance Sheet (partial in Pesos) 8,041,000 4,947,000 12,545,000 14,814,000 5,571,000 45,918,000 40,644,000 Cash Short-term investments Accounts receivable Inventory Other current assets Total current assets Total current liabilities What are the (a) working capital, (b) current ratio, and (c) acid-test ratio? END