Can someone please help with these questions! Thanks 1. A company that uses leve
ID: 2478072 • Letter: C
Question
Can someone please help with these questions! Thanks
1. A company that uses leverage is attempting to earn an overall return that is higher than the cost of funds received from
a. Common stockholders only.
b. Customers.
c. Borrowing.
d. Preferred and common stockholders.
2. Which of the following would report the market price of the company's stock?
d. Statement of cash flows.
3. A company purchased inventory on credit. The effect of this transaction is that the:
4. All of the following are examples of questions that a financial analyst would ask about a company's use of estimates in the recording of expenses except:
5.When a financial analyst determines the percentage change in operating income for the five-year period from 2011 to 2015, she is performing a:
6.Rio Imports
Information from the financial statements are provided below:
Refer to Rio Imports. Return on equity for 2015 is:
Rags to Riches
Selected data from the financial statements are provided below:
Refer to Rags to Riches. Which of the following would result from a horizontal analysis of the company's income statement?
8. Rainsoft Company
Selected data from the financial statements are provided below:
Refer to Rainsoft Company. Assume that competitors in the industry have an average accounts receivable turnover ratio of 7.8 times in 2015. What is the company's accounts receivable turnover ratio for 2015?
10. Rags to Riches
Selected data from the financial statements are provided below:
Refer to Rags to Riches. Which of the following would result from a vertical analysis of the company's income statement?
11. Rio Imports
Information from the financial statements are provided below:
Refer to Rio Imports. The dividend payout ratio for 2015 is:
17. Rainsoft Company
Selected data from the financial statements are provided below:
Refer to Rainsoft Company. What is the current ratio for 2015?
18. Rainsoft Company
Selected data from the financial statements are provided below:
Refer to Rainsoft Company. What is the operating cash flow ratio for 2015?
19. Rags to Riches
Selected data from the financial statements are provided below:
Refer to Rags to Riches. Which of the following would result from a horizontal analysis of the company's balance sheet?
21. Rio Imports
Information from the financial statements are provided below:
Refer to Rio Imports. The net profit margin percentage for 2015 is:
27. Rio Imports
Information from the financial statements are provided below:
Refer to Rio Imports. The times interest earned ratio for 2015
a. Income statement. b. Balance sheet. c. Item 5 in Form 10-K.d. Statement of cash flows.
3. A company purchased inventory on credit. The effect of this transaction is that the:
a. Working capital increased. b. Earnings per share decreased. c. Debt-to-equity ratio increased. d. Earnings per share increased.4. All of the following are examples of questions that a financial analyst would ask about a company's use of estimates in the recording of expenses except:
a. Do warranty provisions cover actual expenditures? b. What expected lives and residual values are used for depreciation computations? c. Are sales taxes included in revenues? d. Is the allowance for uncollectible accounts sufficient to cover bad debts?5.When a financial analyst determines the percentage change in operating income for the five-year period from 2011 to 2015, she is performing a:
a. Profitability analysis. b. Vertical analysis. c. Cross-sectional analysis. d. Time series analysis.6.Rio Imports
Information from the financial statements are provided below:
Refer to Rio Imports. Return on equity for 2015 is:
a. 21.43% b. 18.75% c. 27.26% d. 23.85%Rags to Riches
Selected data from the financial statements are provided below:
Refer to Rags to Riches. Which of the following would result from a horizontal analysis of the company's income statement?
a. Accounts receivable is 13.3% of total assets in 2015. b. Net sales in 2015 increased to 140.74% of the 2014 amount. c. Gross profit is 57.9% of net sales for 2015. d. The accounts receivable turnover ratio is 7.76 in 2015.8. Rainsoft Company
Selected data from the financial statements are provided below:
Refer to Rainsoft Company. Assume that competitors in the industry have an average accounts receivable turnover ratio of 7.8 times in 2015. What is the company's accounts receivable turnover ratio for 2015?
a. 7.62 b. 5.26 c. 8.91 d. 7.8010. Rags to Riches
Selected data from the financial statements are provided below:
Refer to Rags to Riches. Which of the following would result from a vertical analysis of the company's income statement?
a. Gross profit is 57.9% of net sales for 2015. b. Net sales is 84.4% of total assets for 2015. c. The accounts receivable turnover ratio is 7.76 in 2015. d. Cost of goods sold decreased $50,000 or 23.8% during 2015.11. Rio Imports
Information from the financial statements are provided below:
Refer to Rio Imports. The dividend payout ratio for 2015 is:
a. 18.5% b. 25.0% c. 16.7% d. 27.8%17. Rainsoft Company
Selected data from the financial statements are provided below:
Refer to Rainsoft Company. What is the current ratio for 2015?
a. 1.34 b. 1.68 c. 0.60 d. 0.9918. Rainsoft Company
Selected data from the financial statements are provided below:
Refer to Rainsoft Company. What is the operating cash flow ratio for 2015?
a. 4.0625 b. 0.072 c. 0.147 d. 0.24619. Rags to Riches
Selected data from the financial statements are provided below:
Refer to Rags to Riches. Which of the following would result from a horizontal analysis of the company's balance sheet?
a. Accounts receivable increased $44,000 or 57.9% during 2015. b. The accounts receivable turnover ratio is 7.76 in 2015. c. Accounts receivable is five times larger than inventory in 2015. d. Accounts receivable is 13.3% of total assets in 2015.21. Rio Imports
Information from the financial statements are provided below:
Refer to Rio Imports. The net profit margin percentage for 2015 is:
a. 18.95% b. 14.32% c. 16.00% d. 24.11%27. Rio Imports
Information from the financial statements are provided below:
Refer to Rio Imports. The times interest earned ratio for 2015
a. Decreased, which indicates that the company has less cash to pay interest on its debt. b. Indicates that the company cannot meet its current year interest payments out of current year earnings. c. Indicates a decline in the company's ability to pay its liabilities when they come due. d. Increased, which indicates that the company's creditors will be pleased.Explanation / Answer
1. A company that uses leverage is attempting to earn an overall return that is higher than the cost of funds received from
c. Borrowing.
2. Which of the following would report the market price of the company's stock?
c. Item 5 in Form 10-K.
d. Statement of cash flows.
3. A company purchased inventory on credit. The effect of this transaction is that the:
c. Debt-to-equity ratio increased.
4. All of the following are examples of questions that a financial analyst would ask about
a company's use of estimates in the recording of expenses except:
c. Are sales taxes included in revenues?
5.When a financial analyst determines the percentage change in operating income for the
five-year period from 2011 to 2015, she is performing a:
d. Time series analysis.
6.Rio Imports
Information from the financial statements are provided below:
2015
2014
Current Liabilities
$460,000
$320,000
Long-Term Liabilities
240,000
640,000
Stockholders' Equity
840,000
1,080,000
Net Cash Flows from Operating Activities
160,000
102,000
Interest and Principal Payments
24,000
16,000
Net Sales
950,000
900,000
Net Income
180,000
144,000
Interest Expense
17,000
23,000
Income Taxes
32,000
29,000
Dividends Paid to Common Stockholders
30,000
60,000
Refer to Rio Imports. Return on equity for 2015 is:
c. 27.26%
Rags to Riches
Selected data from the financial statements are provided below:
2015
2014
Accounts Receivable
$120,000
$76,000
Inventory
24,000
32,000
Total Assets
900,000
760,000
Net Sales
760,000
540,000
Cost of Goods Sold
320,000
420,000
Refer to Rags to Riches. Which of the following would result from a horizontal analysis of the company's income statement?
b. Net sales in 2015 increased to 140.74% of the 2014 amount.
8. Rainsoft Company
Selected data from the financial statements are provided below:
2015
2014
2013
Cash
$44,000
$28,000
$14,000
Accounts Receivable
84,000
32,000
114,400
Inventory
44,000
166,000
100,000
Prepaid Expenses
46,000
36,000
41,600
Total Current Assets
$218,000
$262,000
$270,000
Total Current Liabilities
$130,000
$144,000
Net Credit Sales
442,000
652,000
Cost of Goods Sold
336,000
598,000
Net Cash Flows from Operating Activities
32,000
58,000
Refer to Rainsoft Company. Assume that competitors in the industry have an average
accounts receivable turnover ratio of 7.8 times in 2015. What is the company's accounts
receivable turnover ratio for 2015?
a. 7.62
10. Rags to Riches
Selected data from the financial statements are provided below:
2015
2014
Accounts Receivable
$120,000
$76,000
Inventory
24,000
32,000
Total Assets
900,000
760,000
Net Sales
760,000
540,000
Cost of Goods Sold
320,000
420,000
Refer to Rags to Riches. Which of the following would result from a vertical
analysis of the company's income statement?
a. Gross profit is 57.9% of net sales for 2015.
I have completed first 10 questions - for balance questions - post a new question
c. Item 5 in Form 10-K.
d. Statement of cash flows.
3. A company purchased inventory on credit. The effect of this transaction is that the:
c. Debt-to-equity ratio increased.
4. All of the following are examples of questions that a financial analyst would ask about
a company's use of estimates in the recording of expenses except:
c. Are sales taxes included in revenues?
5.When a financial analyst determines the percentage change in operating income for the
five-year period from 2011 to 2015, she is performing a:
d. Time series analysis.
6.Rio Imports
Information from the financial statements are provided below:
2015
2014
Current Liabilities
$460,000
$320,000
Long-Term Liabilities
240,000
640,000
Stockholders' Equity
840,000
1,080,000
Net Cash Flows from Operating Activities
160,000
102,000
Interest and Principal Payments
24,000
16,000
Net Sales
950,000
900,000
Net Income
180,000
144,000
Interest Expense
17,000
23,000
Income Taxes
32,000
29,000
Dividends Paid to Common Stockholders
30,000
60,000
Refer to Rio Imports. Return on equity for 2015 is:
c. 27.26%
Rags to Riches
Selected data from the financial statements are provided below:
2015
2014
Accounts Receivable
$120,000
$76,000
Inventory
24,000
32,000
Total Assets
900,000
760,000
Net Sales
760,000
540,000
Cost of Goods Sold
320,000
420,000
Refer to Rags to Riches. Which of the following would result from a horizontal analysis of the company's income statement?
b. Net sales in 2015 increased to 140.74% of the 2014 amount.
8. Rainsoft Company
Selected data from the financial statements are provided below:
2015
2014
2013
Cash
$44,000
$28,000
$14,000
Accounts Receivable
84,000
32,000
114,400
Inventory
44,000
166,000
100,000
Prepaid Expenses
46,000
36,000
41,600
Total Current Assets
$218,000
$262,000
$270,000
Total Current Liabilities
$130,000
$144,000
Net Credit Sales
442,000
652,000
Cost of Goods Sold
336,000
598,000
Net Cash Flows from Operating Activities
32,000
58,000
Refer to Rainsoft Company. Assume that competitors in the industry have an average
accounts receivable turnover ratio of 7.8 times in 2015. What is the company's accounts
receivable turnover ratio for 2015?
a. 7.62
10. Rags to Riches
Selected data from the financial statements are provided below:
2015
2014
Accounts Receivable
$120,000
$76,000
Inventory
24,000
32,000
Total Assets
900,000
760,000
Net Sales
760,000
540,000
Cost of Goods Sold
320,000
420,000
Refer to Rags to Riches. Which of the following would result from a vertical
analysis of the company's income statement?
a. Gross profit is 57.9% of net sales for 2015.
I have completed first 10 questions - for balance questions - post a new question