Please select the right option Agilent with net income of $500,000 pays 48 of net income out in dividends If the firm has 150,000 shares of common stock outstanding, what is the dividend paid per share of stock A $0 30 B $1 44 C $1 60 yes D $1 73 E $3 33 Which of the following statements is CORRECT a The four most important financial statements provided in the annual report are the balance sheet, income statement, cash budget, and the statement of stockholders' equity b The balance sheet gives us a picture of the firms financial position at a point in time yes c The income statement gives us a picture of the firms financial position at a point in time d The statement of cash flows tells us how much cash the firm must pay out in interest during the year e The statement of cash needs tells us how much cash the firm will require during some future period, generally a month or a year Which of the following statements is CORRECT a The balance sheet for a given year, say 2008, is designed to give us an idea of what happened to the firm during that year b The balance sheet for a given year, say 2008, tells us how much money the company earned during that year c The difference between the total assets reported on the balance sheet and the liabilities reported on this statement tells us the current market value of the stockholders' equity, assuming the statements are prepared in accordance with generally accepted accounting principles (GAAP) d If a company's statements were prepared in accordance with generally accepted accounting principles (GAAP), the market value of the stock equals the book value of the stock as reported on the balance sheet e The assets section of a typical industrial companys balance sheet begins with cash, then lists the assets in the order in which they will probably be converted to cash, with the longest lived assets listed last yes Which of the following items is NOT normally considered to be a current asset a Accounts receivable b Inventory c Bonds yes d Cash e Short term, highly liquid, marketable securities A firm has a total book value of equity of $2 million, a market to book ratio of 2, and a book value per share of $5 00 What is the total market value of the firm's equity A $10 B $500,000 C $2 million D $4 million yes E $20 million On its 12 31 08 balance sheet, Barnes Inc showed $510 million of retained earnings, and exactly that same amount was shown the following year Assuming that no earnings restatements were issued, which of the following statements is CORRECT a If the company lost money in 2008, it must have paid dividends b The company must have had zero net income in 2008 c The company must have paid out half of its 2008 earnings as dividends yes d The company must have paid no dividends in 2008 e Dividends could have been paid in 2008, but they would have had to equal the earnings for the year Why is the quick ratio a more rigorous test of short term solvency than the current ratio The quick ratio considers only cash and marketable securities as current assets The quick ratio eliminates prepaid expenses for the numerator The quick ratio eliminates prepaid expenses for the denominator The quick ratio eliminates inventories from the numerator Yes What is a creditors objective in performing an analysis of financial statements To decide whether or not the borrower has the ability to repay interest and principal on borrowed funds yes To determine the firms capital structure To determine the companys future earnings stream To decide whether or not the firm has operated profitably in the past What are common size financial statements Statements that express each account on the balance sheet as a percentage of total assets and each account on the income statement as a percentage of net sales yes Statements that standardize financial data in terms of trends Statements that relate the firm to the industry in which it operates Statements based on common sense and judgment An outflow of cash would result from which of the following The decrease in an asset account other than cash The increase in a liability account The decrease in a liability account yes The increase in an equity account

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Please select the right option Agilent with net income of $500,000 pays 48% of net income out in dividends. If the firm has 150,000 shares

Please select the right option

Agilent with net income of $500,000 pays 48% of net income out in dividends. If the firm has 150,000 shares of common stock outstanding, what is the dividend paid per share of stock? A. $0.30 B. $1.44 C. $1.60 yes D. $1.73 E. $3.33

Which of the following statements is CORRECT?

a. The four most important financial statements provided in the annual report are the balance sheet, income statement, cash budget, and the statement of stockholders' equity.

b. The balance sheet gives us a picture of the firms financial position at a point in time. yes

c. The income statement gives us a picture of the firms financial position at a point in time.

d. The statement of cash flows tells us how much cash the firm must pay out in interest during the year.

e. The statement of cash needs tells us how much cash the firm will require during some future period, generally a month or a year.

Which of the following statements is CORRECT?

a. The balance sheet for a given year, say 2008, is designed to give us an idea of what happened to the firm during that year.

b. The balance sheet for a given year, say 2008, tells us how much money the company earned during that year.

c. The difference between the total assets reported on the balance sheet and the liabilities reported on this statement tells us the current market value of the stockholders' equity, assuming the statements are prepared in accordance with generally accepted accounting principles (GAAP).

d. If a company's statements were prepared in accordance with generally accepted accounting principles (GAAP), the market value of the stock equals the book value of the stock as reported on the balance sheet.

e. The assets section of a typical industrial companys balance sheet begins with cash, then lists the assets in the order in which they will probably be converted to cash, with the longest lived assets listed last. yes

Which of the following items is NOT normally considered to be a current asset?

a. Accounts receivable.

b. Inventory.

c. Bonds. yes

d. Cash.

e. Short-term, highly-liquid, marketable securities.

A firm has a total book value of equity of $2 million, a market to book ratio of 2, and a book value per share of $5.00. What is the total market value of the firm's equity? A. $10 B. $500,000 C. $2 million D. $4 million yes E. $20 million

On its 12/31/08 balance sheet, Barnes Inc showed $510 million of retained earnings, and exactly that same amount was shown the following year. Assuming that no earnings restatements were issued, which of the following statements is CORRECT?

a. If the company lost money in 2008, it must have paid dividends.

b. The company must have had zero net income in 2008.

c. The company must have paid out half of its 2008 earnings as dividends. yes

d. The company must have paid no dividends in 2008.

e. Dividends could have been paid in 2008, but they would have had to equal the earnings for the year.

Why is the quick ratio a more rigorous test of short-term solvency than the current ratio?
1. The quick ratio considers only cash and marketable securities as current assets.
2. The quick ratio eliminates prepaid expenses for the numerator.
3. The quick ratio eliminates prepaid expenses for the denominator.
4. The quick ratio eliminates inventories from the numerator. Yes

What is a creditors objective in performing an analysis of financial statements?
1. To decide whether or not the borrower has the ability to repay interest and principal on borrowed funds. yes
2. To determine the firms capital structure.
3. To determine the companys future earnings stream.
4. To decide whether or not the firm has operated profitably in the past.

What are common size financial statements?

Statements that express each account on the balance sheet as a percentage of total assets and each account on the income statement as a percentage of net sales. yes
Statements that standardize financial data in terms of trends.
Statements that relate the firm to the industry in which it operates.
Statements based on common sense and judgment.

An outflow of cash would result from which of the following?
1. The decrease in an asset account other than cash.
2. The increase in a liability account.
3. The decrease in a liability account. yes
4. The increase in an equity account.