Question 1:

Shamrock, Inc. has the following Income Statement (in millions):

SHAMROCK, INC. Income Statement For the Year Ended December 31, 2023
Net Sales	$280
Cost of Goods Sold	196
Gross Profit	84
Operating Expenses	40
Net Income	$ 44

Using vertical analysis, what percentage is assigned to gross profit?

Question 2:

Given the following data for the Sheridan Company:

Current liabilities	$540
Long-term debt	550
Common stock	690
Retained earnings	520
Total liabilities & stockholders equity	$2300

How would common stock appear on a common size balance sheet?

Question 3:

Marigold Corp. reported net sales of $612000, $733000, and $795600 in the years 2021, 2022, and 2023, respectively. If 2021 is the base year, what percentage do 2023 sales represent of the base?

Question 4:

Assume the following sales data for a company:

2023	$978000
2022	887000
2021	709600

If 2021 is the base year, what is the percentage increase in sales from 2021 to 2022?

Question 5:

The following schedule is a display of what type of analysis?

	Amount	Percent
Current assets	$100,000	25%
Property, plant, and equipment	300,000	75%
Total assets	$400,000	100%

Question 6:

The use of alternative accounting methods

is not a problem in ratio analysis because the footnotes disclose the method used.

may be a problem in ratio analysis even if disclosed.

is not a problem in ratio analysis since eventually all methods will lead to the same end.

is only a problem in ratio analysis with respect to inventory.

Question 7:

An income statement would not include

discontinued operations.

other revenue and gains.

income from operations.

dividends paid.

Question 8:

Which one of the following is not a tool in financial statement analysis?

Circular analysis

Ratio analysis

Horizontal analysis

Vertical analysis

Question 9:

If Year 1 sales equal $830, Year 2 sales equal $1162, and Year 3 sales equal $1000, the percentage to be assigned for Year 2 in a trend analysis, assuming that Year 1 is the base year, is

86%.

140%.

120%.

71%.

Question 10:

Larkspur, Inc. has an investment in trading securities of $142000. This investment experienced an unrealized loss of $7200 during the current year. Assuming a 32% tax rate, the amount of this loss that would reported as part of other comprehensive income would be:

$96560 loss.

None.

$45440 loss.

$142000 loss.