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Problem F (30 points) FILL-IN-THE-BLANK-PRINCIPLES AND TERMINOLOGY-STATEMENT ANALYsiS- NSTRUCTIONS: Complete each of the following statements by writing the appropriate words or amounts in the Answers

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Problem F (30 points) FILL-IN-THE-BLANK-PRINCIPLES AND TERMINOLOGY-STATEMENT ANALYsiS- NSTRUCTIONS: Complete each of the following statements by writing the appropriate words or amounts in the Answers column. STATEMENTS For Scoring Answers 0. The percent of current assets to total assets is an example of (type of analysis) vertical analysis 0. The net income was $10 per common share for 2009. At the beginning of 2010, the number of shares outstanding was increased because of a 3-for-1 stock split. The earnings per share for 2009, adjusted to place it on a comparable basis with 2010, is 1. 2-3. A company with working capital of $750,000 and a current ratio of 2 pays a $50,000 short-term iability 2 2. The amount of working capital immediately after the payment is 3. The current ratio immediately after the payment is 4. If the quick ratio is 1.0, the receipt of cash from the sale of marketable securities at their book value will cause the ratio to (increase, decrease, or not be affected) . 5-6. Three types of retail businesses are being compared: (a) jewelry store, (b) bookstore, and (c) grocery supermarket. 5. The type with the highest inventory turnover is most likely to be te. .. 6. The type with the lowest rate of gross proit is most likely to be the 7. A financial statement in which all items are expressed as percentages statement s called a(n) 8. The ability of a business to meet its financial obligations is called 9. The sum of cash, receivables, and marketable securities is sometimes called 10. The difference between the rate earned on stockholders' equity compared to the rate earned on total assets is sometimes referred to 10. 11. The ratio of the sum of cash, receivables, and marketable securities to current liabilities is called the... 12. 12. Working capital is the excess of current assets over 13. The current ratio is computed by dividing current assets by 3. Three types of businesses are being compared: (a) grocery supermarket., (b) department store, and (c) telephone company. The type most likely to have the highest ratio of fixed assets to long- term liabilities is the 14-15. 14. 14 The type most likely to have the lowest ratio of liabilities to stockholders' equity is the 15. 15

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