Question 1

Rawdon Corporation's net operating income in Year 2 was $52,429, net income before taxes was $34,429, and the net income was $24,100. Total common stock was $360,000 at the end of both Year 2 and Year 1. The par value of common stock is $4 per share. The company's total stockholders' equity at the end of Year 2 amounted to $976,000 and at the end of Year 1 to $960,000. The company's earnings per share for Year 2 is closest to:

Accepted Answer

Earnings per share (EPS) is calculated by dividing the net income by the total number of shares. Given the net income of $24,100 and total common stock of $360,000 with a par value of $4 per share, the number of shares is $360,000 / $4 = 90,000 shares. Therefore, EPS = $24,100 / 90,000 = $0.2677, which rounds to $0.27 per share.

Question 2

Tempel Corporation has provided the following data: $\begin{array}{ll}
&\text { Year 2 } & \text { Year 1 } \
\text {Common stock, \$4 par value }&\$ 240,000 & \$ 240,000 \
\text { Total stockholders' equity.  }&\$ 817,000 & \$ 810,000 \
\text {Net operating income.  }&\$ 36,714 & \
\text {Net income before taxes }&\$ 17,714 & \
\text { Net income }&\$ 12,400 &
\end{array}$ The market price of common stock at the end of Year 2 was $2.77 per share. The company's price-earnings ratio for Year 2 is closest to:

Accepted Answer

The answer of Tempel Corporation has provided the following data:...

Question 3

Crosswhite Corporation's sales last year were $1,270,000, its gross margin was $400,000, its net operating income was $53,769, and its net income was $26,500. The company's net profit margin percentage is closest to:

Accepted Answer

The answer of Crosswhite Corporation's sales last year were $1,270,000,...

Question 4

Kienle Corporation's Year 2 income statement appears below:  The company's total assets at the end of Year 2 amounted to $1,359,000 and at the end of Year 1 to $1,320,000. The company's return on total assets for Year 2 is closest to:

Accepted Answer

The answer of Kienle Corporation's Year 2 income statement appears...

Question 5

Younis Corporation's income statement appears below: $\begin{array}{lr}\text { Income Statement }\
\text { Sales (all on account) }&\$1,240,000\
\text { Cost of goods sold }&780,000\
\text { Gross margin }&460,000\
\text { Operating expenses }&416,571\
\text { Net operating income }&43,429\
\text { Interest expense. }&14,000\
\text { Net income before taxes }&29,429\
\text { Income taxes (35\%) }&8,829\
\text { Net income }&\$20,600
\end{array}$
 The company's net profit margin percentage is closest to:

Accepted Answer

The answer of Younis Corporation's income statement appears below: \(\begin{array}{lr}\text...

Question 6

Sapien Corporation has provided the following data for the most recent year:  The company's gross margin percentage is closest to:

Accepted Answer

Unfortunately, as an AI language model, I wasn't able to analyze the data provided as it appears to be encoded or corrupted. Therefore, without the necessary financial data, it's impossible to calculate the gross margin percentage. We would need more information to accurately determine the gross margin percentage.

Question 7

For Year 2, Etzkorn Corporation's sales were $1,480,000, its gross margin was $580,000, its net operating income was $63,714, its net income before taxes was $42,714, and its net income was $29,900. The company's total stockholders' equity at the end of Year 2 amounted to $829,000 and at the end of Year 1 to $800,000. The company's return on equity for Year 2 is closest to:

Accepted Answer

The answer of For Year 2, Etzkorn Corporation's sales were...

Question 8

Fongeallaz Corporation's income statement for Year 2 appears below:  The company's total stockholders' equity at the end of Year 2 amounted to $841,000 and at the end of Year 1 to $810,000. The company's return on equity for Year 2 is closest to:

Accepted Answer

The answer of Fongeallaz Corporation's income statement for Year 2...

Question 9

Leflore Corporation has provided the following data: $\begin{array}{lrr}
&{\text { Year 2 }} &{\text { Year 1 }} \
\text {Common stock, \$5 par value.  }&\$ 500,000 & \$ 500,000 \
\text {Total stockholders' equity.  }&\$ 1,016,000 & \$ 1,010,000 \
\text {Net operating income.  }&\$ 35,143 & \
\text {Net income before taxes }&\$ 17,143 & \
\text { Net income }&\$ 12,000 &
\end{array}$ Dividends on common stock during Year 2 totaled $6,000. The market price of common stock at the end of Year 2 was $1.38 per share. The company's dividend yield ratio for Year 2 is closest to:

Accepted Answer

The dividend yield ratio is calculated as (Dividends per share / Market price per share). Dividends per share = Total dividends / Number of shares = $6,000 / ($500,000 / $5) = $0.06. Dividend yield ratio = $0.06 / $1.38 ≈ 4.3%.

Question 10

Linzey Corporation has provided the following data: $\begin{array}{ll}
&\text { Year 2 } & \text { Year 1 } \
\text {Common stock, $ \$ 2 $ par value }&\$ 120,000 & \$ 120,000 \
\text {Retained earnings }&\$ 747,000 & \$ 720,000 \
\text {Total stockholders' equity }&\$ 927,000 & \$ 900,000
\end{array}$ The company's net income in Year 2 was $33,000. The company's book value per share at the end of Year 2 is closest to:

Accepted Answer

The answer of Linzey Corporation has provided the following data:...

Question 11

Goldsmith Corporation has provided the following data: $\begin{array}{lcr}
&\text { Year 2 } &{\text { Year 1 }} \
\text { Common stock, \$3 par value.}&\$ 270,000 & \$ 270,000 \
\text {Retained earnings }&\$ 419,000 & \$ 400,000 \
\text {Total stockholders' equity. }&\$ 749,000 & \$ 730,000 \
\text {Total liabilities \& stockholders' equity }&\$ 1,291,000 & \$ 1,270,000
\end{array}$ The company's net income in Year 2 was $24,400. The company's book value per share at the end of Year 2 is closest to:

Accepted Answer

The book value per share is calculated by dividing the total stockholders' equity by the number of shares outstanding. In this case, the number of shares outstanding is not given, so we cannot calculate the book value per share exactly. However, we can estimate the book value per share by dividing the total stockholders' equity by the number of shares authorized. In this case, the number of shares authorized is 90,000 shares (270,000 / $3). Therefore, the estimated book value per share is $749,000 / 90,000 = $8.32 per share.

Question 12

Weightman Corporation's net operating income in Year 2 was $76,385, net income before taxes was $55,385, and the net income was $36,000. Total common stock was $200,000 at the end of both Year 2 and Year 1. The par value of common stock is $4 per share. The company's total stockholders' equity at the end of Year 2 amounted to $983,000 and at the end of Year 1 to $950,000. The market price per share at the end of Year 2 was $7.92. The company's price-earnings ratio for Year 2 is closest to:

Accepted Answer

Earnings per share = Net Income ÷ Average number of common shares outstanding*
= $36,000 ÷ 50,000 shares = $0.72 per share (rounded)
*Number of common shares outstanding = Common stock ÷ Par value
= $200,000 ÷ $4 per share = 50,000 shares
Price-earnings ratio = Market price per share ÷ Earnings per share
= $7.92 ÷ $0.72 = 11.00 (rounded)

Question 13

Valdovinos Corporation has provided the following data:  The company's net profit margin percentage is closest to:

Accepted Answer

The answer of Valdovinos Corporation has provided the following data:...

Question 14

Braverman Corporation's net income last year was $75,000 and its interest expense was $10,000. Total assets at the beginning of the year were $650,000 and total assets at the end of the year were $610,000. The corporation's income tax rate was 30%. The corporation's return on total assets for the year was closest to:

Accepted Answer

The return on total assets (ROA) is calculated as (Net Income + Interest Expense * (1 - Tax Rate)) / Average Total Assets. Here, it's ($75,000 + $10,000 * (1 - 0.30)) / (($650,000 + $610,000) / 2) = ($75,000 + $7,000) / $630,000 = $82,000 / $630,000 = 0.13 or 13.0%.

Question 15

The following information relates to Conejo Corporation for last year:  What is Conejo's price-earnings ratio for last year?

Accepted Answer

The answer of The following information relates to Conejo Corporation...

Question 16

Mormino Corporation's income statement appears below: $\begin{array}{lr}\text { Income Statement }\
\text { Sales (all on account) }&\$1,240,000\
\text { Cost of goods sold }&730,000\
\text { Gross margin }&510,000\
\text { Operating expenses }&450,000\
\text { Net operating income }&59,538\
\text { Interest expense. }&18,000\
\text { Net income before taxes }&41,538\
\text { Income taxes (35\%) }&14,538\
\text { Net income }&\$27,000
\end{array}$
 The company's gross margin percentage is closest to:

Accepted Answer

The gross margin percentage is calculated as (Gross Margin / Sales) * 100. Here, it is ($510,000 / $1,240,000) * 100 = 41.1%.

Question 17

Grosvenor Corporation's most recent income statement appears below:  The gross margin percentage is closest to:

Accepted Answer

The answer of Grosvenor Corporation's most recent income statement appears...

Question 18

Jester Corporation's most recent income statement appears below:  The beginning balance of total assets was $360,000 and the ending balance was $320,000. The return on total assets is closest to:

Accepted Answer

The answer of Jester Corporation's most recent income statement appears...

Question 19

Mars Corporation has provided the following data for Year 2:  The company's total stockholders' equity at the end of Year 2 amounted to $1,095,000 and at the end of Year 1 to $1,060,000. The company's return on equity for Year 2 is closest to:

Accepted Answer

The answer of Mars Corporation has provided the following data...

Question 20

Keyton Corporation's net operating income in Year 2 was $43,714, net income before taxes was $30,714, and the net income was $21,500. Total common stock was $200,000 at the end of both Year 2 and Year 1. The par value of common stock is $4 per share. The company's total stockholders' equity at the end of Year 2 amounted to $1,148,000 and at the end of Year 1 to $1,130,000. The company declared and paid $3,500 dividends on common stock in Year 2. The market price per share was $8.43 at the end of Year 2. The company's dividend payout ratio for Year 2 is closest to:

Accepted Answer

To calculate the dividend payout ratio, we need to divide the dividends paid on common stock by the net income.

Dividend payout ratio = Dividends paid on common stock / Net income

Dividends paid on common stock = $3,500

Net income = $21,500

Dividend payout ratio = $3,500/$21,500 = 0.163 or 16.3%

Therefore, the answer is (C) 16.3%.

Quiz 15: Financial Statement Analysis

Crosswhite Corporation's sales last year were $1,270,000, its gross margin was $400,000, its net operating income was $53,769, and its net income was $26,500. The company's net profit margin percentage is closest to:

Kienle Corporation's Year 2 income statement appears below: The company's total assets at the end of Year 2 amounted to $1,359,000 and at the end of Year 1 to $1,320,000. The company's return on total assets for Year 2 is closest to:

Sapien Corporation has provided the following data for the most recent year: The company's gross margin percentage is closest to:

Fongeallaz Corporation's income statement for Year 2 appears below: The company's total stockholders' equity at the end of Year 2 amounted to $841,000 and at the end of Year 1 to $810,000. The company's return on equity for Year 2 is closest to:

Valdovinos Corporation has provided the following data: The company's net profit margin percentage is closest to:

The following information relates to Conejo Corporation for last year: What is Conejo's price-earnings ratio for last year?

Grosvenor Corporation's most recent income statement appears below: The gross margin percentage is closest to:

Jester Corporation's most recent income statement appears below: The beginning balance of total assets was $360,000 and the ending balance was $320,000. The return on total assets is closest to:

Mars Corporation has provided the following data for Year 2: The company's total stockholders' equity at the end of Year 2 amounted to $1,095,000 and at the end of Year 1 to $1,060,000. The company's return on equity for Year 2 is closest to: