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The following data are taken from the financial statements:​ The following data are taken from the financial statements:​ The following data are taken from the financial statements:​

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The ratio of the market price per share of common stock on a specific date to the annual earnings per share is referred to as the price-earnings ratio.

A) True
B) False

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Match each ratio that follows to its use (items a-h) . Items may be used more than once. -Return on common stockholders' equity


A) Assess the profitability of the assets
B) Assess how effectively assets are used
C) Indicate the ability to pay current liabilities
D) Indicate how much of the company is financed by debt and equity
E) Indicate instant debt-paying ability
F) Assess the profitability of the investment by common stockholders
G) Indicate future earnings prospects
H) Indicate the extent to which earnings are being distributed to common stockholders

I) B) and F)
J) E) and H)

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In the vertical analysis of a balance sheet,the base for current liabilities is total liabilities.

A) True
B) False

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Which of the following is not included in the computation of the quick ratio?


A) inventory
B) marketable securities
C) accounts receivable
D) cash

E) C) and D)
F) A) and B)

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The relationship of $325,000 to $125,000,expressed as a ratio,is


A) 2.0
B) 2.6
C) 2.5
D) 0.45

E) B) and C)
F) None of the above

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Use this information for Kellman Company to answer the questions that follow. ​ The balance sheets at the end of each of the first two years of operations indicate the following: ​ Use this information for Kellman Company to answer the questions that follow. ​ The balance sheets at the end of each of the first two years of operations indicate the following: ​ -Using the balance sheets for Kellman Company,if net income is $250,000 and interest expense is $30,000 for Year 2,what are the earnings per share on common stock for Year 2? A) $4.16 B) $4.32 C) $4.02 D) $2.49 -Using the balance sheets for Kellman Company,if net income is $250,000 and interest expense is $30,000 for Year 2,what are the earnings per share on common stock for Year 2?


A) $4.16
B) $4.32
C) $4.02
D) $2.49

E) B) and C)
F) A) and B)

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The numerator of the return on total assets is


A) net income
B) net income plus tax expense
C) net income plus interest expense
D) net income minus preferred dividends

E) B) and C)
F) A) and D)

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Match each definition that follows with the term (a-h) it defines. -Use debt to increase the return on an investment


A) Solvency
B) Leverage
C) Times interest earned
D) Horizontal analysis
E) Vertical analysis
F) Common-sized financial statements
G) Current position analysis
H) Profitability analysis

I) C) and G)
J) D) and F)

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A company reports the following:​ A company reports the following:​ Determine the asset turnover ratio.Round your answer to one decimal place. Determine the asset turnover ratio.Round your answer to one decimal place.

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Asset Turnover Ratio = Sales/A...

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Zeus Company reports the following for the current year:​*Net of any tax effect Zeus Company reports the following for the current year:​*Net of any tax effect ​ ​ Zeus Company reports the following for the current year:​*Net of any tax effect ​

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If a firm has a current ratio of 2,the subsequent collection of a 60-day note receivable on account will cause the ratio to decrease.

A) True
B) False

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A company can compare its financial data to the data of other companies and industry averages to evaluate its position.

A) True
B) False

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A company reports the following:​ A company reports the following:​ Determine the (a)accounts receivable turnover and (b)number of days' sales in receivables.Round your answers to onedecimal place. Determine the (a)accounts receivable turnover and (b)number of days' sales in receivables.Round your answers to onedecimal place.

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A company reports the following:​ A company reports the following:​ Determine the asset turnover ratio.Round your answer to one decimal place. Determine the asset turnover ratio.Round your answer to one decimal place.

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Asset Turnover Ratio = Sales/A...

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The return on total assets measures the profitability of total assets,without considering how the assets are financed.

A) True
B) False

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The particular analytical measures chosen to analyze a company may be influenced by all of the following except


A) industry type
B) general economic environment
C) diversity of business operations
D) product quality or service effectiveness

E) A) and B)
F) None of the above

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The following information was taken from the financial statement of Fox Resources for December 31 of the current fiscal year:​​ The following information was taken from the financial statement of Fox Resources for December 31 of the current fiscal year:​​ The net income was $600,000,and the declared dividends on the common stock were $125,000 for the current year.The market price of the common stock is $20 per share.Calculate for the common stock: (a) Earnings per share (b) Price-earnings ratio (c) Dividends per share and dividend yield​Round to one decimal place except earnings per share,which should be rounded to two decimal places. The net income was $600,000,and the declared dividends on the common stock were $125,000 for the current year.The market price of the common stock is $20 per share.Calculate for the common stock: (a) Earnings per share (b) Price-earnings ratio (c) Dividends per share and dividend yield​Round to one decimal place except earnings per share,which should be rounded to two decimal places.

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Unusual items affecting the current period's income statement consist of changes in accounting principles and discontinued operations.

A) True
B) False

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The balance sheet data below for Randolph Company for two recent years.​​ The balance sheet data below for Randolph Company for two recent years.​​ ​ Round percentages to one decimal place. ​ The balance sheet data below for Randolph Company for two recent years.​​ ​ Round percentages to one decimal place. Round percentages to one decimal place.

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