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Exam 17: Financial Statement Analysis

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Question 31

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A company reports the following: Determine the number of times interest charges are earned. Round your answer to one decimal place.

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Number of times interest charges are ear...

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Question 32

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Which of the following items appear on the corporate income statement before income from continuing operations?

A) cumulative effect of a change in accounting principle
B) income tax expense
C) extraordinary gain
D) loss on discontinued operations

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

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Question 33

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The excess of current assets over current liabilities is referred to as working capital.

A company reports the following: Determine the (a) rate earned on stockholders' equity, and (b) rate earned on common stockholders' equity. Round your answer to one decimal place.

Based on the following data for the current year, what is the accounts receivable turnover?

In a company's annual report, the section called management discussion and analysis provides critical information in interpreting the financial statements and assessing the future of the company.

Assume the following sales data for a company: What is the percentage increase in sales from 2014 to 2015?

The auditor's report is where the auditor certifies that the financial statements are correct and accurate.

A firm selling food should have higher inventory turnover rate than a firm selling office furniture.

In the vertical analysis of an income statement, each item is generally stated as a percentage of total assets.

Selected data from the Carmen Company at year end are presented below: Instructions Calculate the profitability ratios that can be computed from the above information.Assume the company had no preferred stock or interest expense. Round percentage value to one decimal place and dollar value to zero decimal place. With the information provided, the profitability ratios that can be calculated are as follows:

The ratio of fixed assets to long-term liabilities provides a measure of a firm's ability to pay dividends.

The following items were taken from the financial statements of Stanton, Inc., over a three-year period: Compute the following for each of the above time periods. Round percentage to one decimal place.

Prepare an Income Statement using the following data for Young Adventures for the year ended December 31, 2012:

In horizontal analysis, each item is expressed as a percentage of the

A loss on disposal of a segment would be reported in the income statement as a(n)

The following information pertains to Carlton Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Assets Liabilities and Stockholders' Equity Income Statement What are the dividends per common share for this company?

The following items are reported on a company's balance sheet: Determine the (a) current ratio, and (b) quick ratio. Round your answer to one decimal place.

If two companies have the same current ratio, their ability to pay short-term debt is the same.

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.