FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 17: Financial Statement Analysis

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 61

Multiple Choice

Review LaterAdd Note

Review Later

The formula for calculating the cash ratio is ________.

A) (Cash) / Total liabilities
B) (Cash + Cash equivalents) / Total current liabilities
C) (Cash + Cash equivalents) / Total assets
D) (Cash equivalents) / Total current liabilities

Correct Answer

verified

Show Answer

Question 62

Multiple Choice

Review LaterAdd Note

Review Later

Commons,Inc.provides the following information for 2018: The company has no preferred stock outstanding.Calculate the dividend yield for common stock.(Round your answer to two decimal places. )

A) 3.95%
B) 1.21%
C) 2.74%
D) 4.11%

Correct Answer

verified

Show Answer

Question 63

True/False

Review LaterAdd Note

The debt ratio is the ratio of total debt divided by total equity.

Benchmarking often compares a company against a key competitor or the industry average.

Walton,Inc.provides the following data: Additional information for the year ending December 31,2019: Calculate the rate of return on total assets for 2019.(Round your answer to two decimal places. )

There are three main ways to analyze financial statements.Which of the following does NOT represent one of these ways of analyzing financial statements?

The audit report in the annual report is prepared by an internal auditor of a company.

Provide a description of the contents of each of the following components of the annual report.

The rate of return on total assets measures a company's success in using its assets to earn a profit.

To accurately determine the financial performance of a company,it is necessary to compare its performance from year to year,with a competing company,and with the same industry as a whole.

Investors and creditors can evaluate a company by examining only one year of data.

Glasgow,Inc.provides the following: Perform a vertical analysis of Glasgow's balance sheet for each year.(Round to one decimal place. )

Which of the following best describes trend analysis?

The price/earnings ratio shows the market price of $1 of earnings.

A high current ratio indicates that current liabilities are greater than current assets.

Benchmarking is the comparison of a company's current year results with a previous year's performance.

To accurately determine the financial performance of a company,it is necessary to compare the company's performance ________.

Surround,Inc.provides the following data: Calculate the debt to equity ratio.(Round your answer to two decimal places. )

Mercer,Inc.provides the following data for 2019: The gross profit as a percentage of net sales is ________.(Round your answer to two decimal places. )

Milton,Inc.provides the following income statement for 2019: Calculate the times-interest-earned ratio.(Round your answer to two decimal places. )