Question 1

The debt ratio, the equity ratio, pledged assets to secured liabilities, and times interest earned are all ___________________ ratios.

Accepted Answer

The answer of The debt ratio, the equity ratio, pledged...

Question 2

A good financial statement analysis report usually includes the following six sections: (1) ________________________, (2) ______________________, (3) _________________, (4) __________________ (5) ____________________, and (6) ______________________.

Accepted Answer

The answer of A good financial statement analysis report usually...

Question 3

Trend percentage is calculated by dividing _________________________ by ___________________________ and multiplying the result by 100.

Accepted Answer

The answer of Trend percentage is calculated by dividing _________________________...

Question 4

The comparison of a company's financial condition and performance across time is known as ____________________.

Accepted Answer

The answer of The comparison of a company's financial condition...

Question 5

The four building blocks of financial analysis are (1) _____________, (2) ____________, (3) ____________ and (4) _________________.

Accepted Answer

The answer of The four building blocks of financial analysis...

Question 6

______________________ ratios include the price-earnings ratio and dividend yield.

Accepted Answer

The answer of ______________________ ratios include the price-earnings ratio and...

Question 7

_______________ financial statements are reports where financial amounts are placed side-by-side in columns on a single statement for analytical purposes.

Accepted Answer

The answer of _______________ financial statements are reports where financial...

Question 8

A common focus of financial statement users in evaluating a company's performance and financial condition includes evaluating its (1) __________________, (2) ______________, and (3) ___________________.

Accepted Answer

The answer of A common focus of financial statement users...

Question 9

Financial information for Sigma Company is presented below. Calculate the following ratios for 2017:
(a) Inventory turnover.
(b) Accounts receivable turnover.
(c) Return on total assets.
(d) Times interest earned.
(e) Total asset turnover.

Accepted Answer

The answer of Financial information for Sigma Company is presented...

Question 10

The current ratio and acid-test ratio are used to reflect the ____________ of a business.

Accepted Answer

The answer of The current ratio and acid-test ratio are...

Question 11

_________________ applies analytical tools to general-purpose financial statements and related data for making business decisions.

Accepted Answer

The answer of _________________ applies analytical tools to general-purpose financial...

Question 12

The gross margin ratio, return on total assets, and basic earnings per share are all _____________ ratios.

Accepted Answer

The answer of The gross margin ratio, return on total...

Question 13

____________ is a method of analysis used to evaluate individual financial statement items or groups of items in terms of a specific base amount.

Accepted Answer

The answer of ____________ is a method of analysis used...

Question 14

The following summaries from the income statements and balance sheets of Kouris Company and Brittania, Inc. are presented below.
(1) For both companies for 2017, compute the:
(a) Current ratio
(b) Acid-test ratio
(c) Accounts receivable turnover
(d) Inventory turnover
(e) Days' sales in inventory
(f) Days' sales uncollected
Which company do you consider to be the better short-term credit risk? Explain.
(2) For both companies for 2017, compute the:
(a) Profit margin ratio
(b) Return on total assets
(c) Return on common stockholders' equity
Which company do you consider to have better profitability ratios?

Accepted Answer

The answer of The following summaries from the income statements...

Question 15

Three of the most common tools of financial analysis are (1) ____________, (2) __________________, and (3) ______________________.

Accepted Answer

The answer of Three of the most common tools of...

Question 16

The comparison of a company's financial condition and performance to a base amount is known as _________________.

Accepted Answer

The answer of The comparison of a company's financial condition...

Question 17

Use the following information from the current year financial statements of a company to calculate the ratios below:
(a) Current ratio.
(b) Accounts receivable turnover. (Assume the prior year's accounts receivable balance was $100,000.)
(c) Days' sales uncollected.
(d) Inventory turnover. (Assume the prior year's inventory was $50,200.)
(e) Times interest earned ratio.
(f) Return on common stockholders' equity. (Assume the prior year's common stock balance was $480,000 and the retained earnings balance was $128,000.)
(g) Earnings per share (assuming the corporation has a simple capital structure, with only common stock outstanding).
(h) Price earnings ratio. (Assume the company's stock is selling for $26 per share.)
(i) Divided yield ratio. (Assume that the company paid $1.25 per share in cash dividends.)

Accepted Answer

The answer of Use the following information from the current...

Question 18

The measurement of key relationships between financial statement items is known as ________________.

Accepted Answer

The answer of The measurement of key relationships between financial...

Question 19

The standards for comparisons when interpreting measures from financial statement analysis include (1) ___________, (2) ____________, (3) _____________, and (4) _______________.

Accepted Answer

The answer of The standards for comparisons when interpreting measures...

Question 20

General-purpose financial statements include the (1) ______________, (2) _____________, (3) _______________, (4) ______________ and (5) ________________.

Accepted Answer

The answer of General-purpose financial statements include the (1) ______________,...

Quiz 13: Analyzing and Interpreting Financial Statements

The debt ratio, the equity ratio, pledged assets to secured liabilities, and times interest earned are all ___________________ ratios.

A good financial statement analysis report usually includes the following six sections: (1) __________, (2) , (3) _, (4) (5) , and (6) ____________.

Trend percentage is calculated by dividing _ by ___ and multiplying the result by 100.

The comparison of a company's financial condition and performance across time is known as ____________________.

The four building blocks of financial analysis are (1) _, (2) , (3) and (4) _____.

______________________ ratios include the price-earnings ratio and dividend yield.

_______________ financial statements are reports where financial amounts are placed side-by-side in columns on a single statement for analytical purposes.

A common focus of financial statement users in evaluating a company's performance and financial condition includes evaluating its (1) , (2) , and (3) ___.

Financial information for Sigma Company is presented below. Calculate the following ratios for 2017: (a) Inventory turnover. (b) Accounts receivable turnover. (c) Return on total assets. (d) Times interest earned. (e) Total asset turnover.

The current ratio and acid-test ratio are used to reflect the ____________ of a business.

_________________ applies analytical tools to general-purpose financial statements and related data for making business decisions.

The gross margin ratio, return on total assets, and basic earnings per share are all _____________ ratios.

____________ is a method of analysis used to evaluate individual financial statement items or groups of items in terms of a specific base amount.

Three of the most common tools of financial analysis are (1) , (2) , and (3) ____________.

The comparison of a company's financial condition and performance to a base amount is known as _________________.

The measurement of key relationships between financial statement items is known as ________________.

The standards for comparisons when interpreting measures from financial statement analysis include (1) _____, (2) , (3) _, and (4) _________.

General-purpose financial statements include the (1) ________, (2) _, (3) _, (4) and (5) __________.