Financial Statement Analysis

Which of the following is an example of an intracompany basis for comparison in financial statement analysis?

Vertical analysis, also known as common-size analysis, expresses each financial statement item as a percentage of what base amount on the income statement?

Based on Illustration 18-5 for Quality Department Store Inc., what was the percentage increase for Current liabilities from 2012 to 2013?

According to the vertical analysis in Illustration 18-9, what percentage of net sales did Quality Department Store Inc.'s gross profit represent in 2013?

Which group of ratios best measures the short-term ability of a company to pay its maturing obligations and meet unexpected needs for cash?

Using the data for Quality Department Store in Illustration 18-12, what was its current ratio for 2012?

The acid-test (quick) ratio is a more stringent measure of liquidity than the current ratio because it excludes which of the following from the numerator?

Using the data from Illustration 18-15 for Quality Department Store, what was the accounts receivable turnover for 2013?

A variant of the inventory turnover ratio is days in inventory. How is this measure calculated?

Using Illustration 18-16, what was the inventory turnover for Quality Department Store in 2013?

The return on assets ratio is computed by dividing net income by which of the following?

What is the primary reason that a company's rate of return on common stockholders' equity might be substantially higher than its rate of return on assets?

Using the data for Quality Department Store in Illustration 18-20, what was its return on common stockholders' equity for 2013?

When a company has preferred stock outstanding, what adjustment must be made to the numerator when calculating earnings per share (EPS)?

What does a high price-earnings (P-E) ratio generally indicate about a company?

Using Illustration 18-23 for Quality Department Store, what was the price-earnings (P-E) ratio for 2013?

Companies with high growth rates generally have which characteristic regarding their payout ratio?

From a creditor's point of view, which of the following is generally considered desirable for the debt to assets ratio?

What is the primary purpose of separating discontinued operations from continuing operations on a statement of comprehensive income?

In the statement of comprehensive income for Cruz Company (Illustration 18-28), what is the amount of income from continuing operations?

In vertical analysis of a balance sheet, what is typically used as the base amount?

Using the data for Quality Department Store Inc. in Illustration 18-6, what was the percentage increase in Net sales from 2012 to 2013?

Which of the following describes a key difference between horizontal and vertical analysis?

Based on the intercompany comparison in Illustration 18-10, which statement is accurate?

If a company has an accounts receivable turnover of 10, what is its approximate average collection period?

Which ratio is a solvency ratio?

Using Illustration 18-24, what was the payout ratio for Quality Department Store in 2013?

What is the primary difference between sustainable income and actual net income?

According to Illustration 18-29, how are the loss from operation of the chemical division and the loss from disposal of the chemical division presented?

What is the primary purpose of other comprehensive income?

Based on the horizontal analysis in Illustration 18-7, the percentage increase in net income for Quality Department Store was 26.5 percent. What was the percentage increase in dividends paid during the same period?

In a horizontal analysis where 2011 is the base year, net sales in 2011 are $100,000, in 2012 are $120,000, and in 2013 are $150,000. How would net sales for 2013 be expressed as a percentage of the base period?

Using Illustration 18-8, what percentage of total liabilities and stockholders' equity did Retained earnings represent for Quality Department Store in 2012?

Which of the following ratios is not considered a profitability ratio according to Illustration 18-27?

If a company's inventory turnover is 12, what is its approximate days in inventory?

In the summary of ratios in Illustration 18-27, what is the formula for the payout ratio?

Pro forma income, as discussed in the 'Investor Insight' on page 808, typically excludes what kind of items?

Using Illustration 18-32 for Pace Corporation, what is the amount of income (loss) from discontinued operations, net of tax?

In Illustration 18-32 for Pace Corporation, what is the amount of comprehensive income?

Horizontal analysis is also known as what?

Using Illustration 18-5, calculate the percentage increase in total liabilities for Quality Department Store Inc. from 2012 to 2013.

In Illustration 18-8, Quality Department Store's total liabilities as a percentage of total liabilities and stockholders' equity changed from 50.2 percent in 2012 to what in 2013?

If a company has a debt to assets ratio of 60 percent, what is its equity to assets ratio?

If a company’s return on assets is 12 percent and its return on common stockholders’ equity is 10 percent, what can be concluded?

If a company has net income of $200,000, preferred dividends of $20,000, and 100,000 weighted-average common shares outstanding, what is its earnings per share (EPS)?

Which of the three types of financial statement comparisons would be most useful for evaluating a company's competitive position within its market?

The calculation of the times interest earned ratio uses which figure in the numerator?

If a company's inventory turnover is low compared to its competitors, what might this suggest?

What are the two main components reported within the 'Discontinued operations' section of a statement of comprehensive income?

If a company has current assets of $500,000, current liabilities of $250,000, inventory of $200,000, and prepaid expenses of $50,000, what is its acid-test ratio?