Please help me answer these questions :(
Knowledge Check 01 A high inventory turnover ratio indicates all of following except Multiple Choice there are no inventory shortages inventory is selling quickly less cash is tied up in inventory O the risk of outdated inventory is lower Knowledge Check 01 A low receivables turnover ratio could be due to any of the following except Multiple Choice the company hires an outside agency to expedite the collection of accounts that have been outstanding for an extended period of time the company loosens its credit terms in an effort to generate additional sales the company is inefficient in collecting on its receivables O the company regularly makes large sales to customers with bad credit Knowledge Check 01 Partial financial information for Fleetwood Corporation is provided below. Assume all sales are on credit. Year 2 Accounts receivable $150,000 Inventory 195,000 Net sales 930,000 Cost of goods sold 520,000 Year 1 $ 90,000 130,000 810,000 480,000 Fleetwood's Year 2 receivables turnover ratio is: Multiple Choice 0 4.3 times 0 6.2 times 0 7.3 times 0 7.8 times Knowledge Check 01 Provided below is a partial balance sheet for Lilac Corporation. $ Year 2 500,000 400,000 Cash Accounts receivable Inventory Long-term assets Total assets Year 1 $ 540,000 460,000 350,000 880,000 $2,230,000 900,000 $2,100,000 Using horizontal analysis, what percentage is applicable to Accounts Receivable? Multiple Choice 0 (13.0%) 0 13.0% 0 15.0% 0 20.6% Knowledge Check 01 Piper, Inc. reports cash of $260,000 in Year 1 and $210,000 in Year 2. Using horizontal analysis, what is the percentage increase or decrease in cash? Multiple Choice 0 (19.2%) 0 19.2% 0 (23.8%) 0 23.8% Knowledge Check 01 Using horizontal analysis, it is important to look at both the amount of change and the percentage change. True or False True True False False Knowledge Check 01 Big Hit, Inc., reported a net loss of $30 million in the current year and net income of $60 million in the prior year. Which of the following will be the percentage change in income? Multiple Choice 150% 50% (50%) (50%) (150%) Knowledge Check 01 Kentwood Corporation reports net sales of $880,000 in Year 1 and $720,000 in Year 2. Using horizontal analysis, what is the percentage increase or decrease in sales? Multiple Choice O 18.2% (18.2%) 22.2% (22.2%) Knowledge Check 01 Which of the following is the denominator in the formula used to calculate the percentage increase or decrease of an item in horizontal analysis? Multiple Choice Current-year amount - Prior-year amount O O Prior-year amount 0 Current-year amount 0 Prior-year amount - Current-year amount Knowledge Check 01 We use horizontal analysis to Multiple Choice O distinguish persistent earnings from one-time items compare two companies of different sizes O make company comparisons to industry averages analyze trends in financial statement data for a company over time Knowledge Check 01 Provided below is a partial balance sheet for Goodwin Corporation. Amount Cash $ 500,000 Accounts receivable 400,000 Inventory 300,000 Long-term assets 900,000 Total assets $2,100,000 Using vertical analysis, what percentage is applicable to Inventory? Multiple Choice 0 14.3% 0 30.0% 0 60.0% 0 85.7% Knowledge Check 01 In vertical analysis of the balance sheet, we usually express each balance sheet item as a percentage of: Multiple Choice Total assets O Total liabilities 0 Total stockholders' equity O Retained earnings Knowledge Check 01 Provided below is summary income statement data for Freedom Corporation. Sales Cost of goods sold Operating expenses Other expense Income tax expense Net income Amount $800,000 350,000 180,000 30,000 20,000 $220,000 Using vertical analysis, what percentage is applicable to Cost of Goods Sold? Multiple Choice O 35.0% O 43.8% 0 56.2% O 62.9% Knowledge Check 01 In vertical analysis of the income statement, we usually express each income statement item as a percentage of: Multiple Choice Net income o Operating expenses o Tax expense o Sales Knowledge Check 01 A vertical analysis is best used to make comparisons between multiple companies. True or False True False
