Chapter 15 – Financial Statement Analysis
42. Last year the return on total assets in Jeffrey Company was 8.5%. The total assets were
2.9 million at the beginning of the year and 3.1 million at the end of the year. The tax rate was
30%, interest expense totaled $110 thousand, and sales were $5.2 million. Net income for the
year was:
Chapter 15 – Financial Statement Analysis
43. Brandon Company’s net income last year was $65,000 and its interest expense was
$20,000. Total assets at the beginning of the year were $640,000 and total assets at the end of
the year were $690,000. The company’s income tax rate was 30%. The company’s return on
total assets for the year was closest to:
Chapter 15 – Financial Statement Analysis
44. The following account balances have been provided for the end of the most recent year:
The book value per share of common stock is:
Chapter 15 – Financial Statement Analysis
45. Vessels Corporation’s net income for the most recent year was $2,532,000. A total of
200,000 shares of common stock and 200,000 shares of preferred stock were outstanding
throughout the year. Dividends on common stock were $3.80 per share and dividends on
preferred stock were $1.25 per share. The earnings per share of common stock is closest to:
Chapter 15 – Financial Statement Analysis
46. Tronnes Corporation’s net income last year was $1,750,000. The dividend on common
stock was $2.60 per share and the dividend on preferred stock was $2.50 per share. The
market price of common stock at the end of the year was $57.70 per share. Throughout the
year, 300,000 shares of common stock and 100,000 shares of preferred stock were
outstanding. The price-earnings ratio is closest to:
Chapter 15 – Financial Statement Analysis
47. Delatrinidad Corporation’s net income last year was $7,736,000. The dividend on common
stock was $12.60 per share and the dividend on preferred stock was $2.80 per share. The
market price of common stock at the end of the year was $53.30 per share. Throughout the
year, 400,000 shares of common stock and 200,000 shares of preferred stock were
outstanding. The dividend payout ratio is closest to:
48. Last year, Shadow Corporation’s dividend on common stock was $9.90 per share and the
dividend on preferred stock was $1.00 per share. The market price of common stock at the
end of the year was $68.10 per share. The dividend yield ratio is closest to:
Chapter 15 – Financial Statement Analysis
49. Hagerman Corporation’s most recent income statement appears below:
The beginning balance of total assets was $140,000 and the ending balance was $90,000. The
return on total assets is closest to:
Chapter 15 – Financial Statement Analysis
50. Excerpts from Lasso Corporation’s most recent balance sheet appear below:
Net income for Year 2 was $145,000. Dividends on common stock were $55,000 in total and
dividends on preferred stock were $20,000 in total. The return on common stockholders’
equity for Year 2 is closest to:
Chapter 15 – Financial Statement Analysis
51. Data from Saldivar Corporation’s most recent balance sheet appear below:
A total of 150,000 shares of common stock and 40,000 shares of preferred stock were
outstanding at the end of the year. The book value per share is closest to:
Chapter 15 – Financial Statement Analysis
52. Drama Company’s working capital is $16,000 and its current liabilities are $94,000. The
company’s current ratio is closest to:
Chapter 15 – Financial Statement Analysis
53. Selected year-end data for the Brayer Company are presented below:
The company has no prepaid expenses and inventories remained unchanged during the year.
Based on these data, the company’s inventory turnover ratio for the year was closest to:
Chapter 15 – Financial Statement Analysis
54. Brewster Company has an acid-test ratio of 1.5 and a current ratio of 2.5. Current assets
equal $200,000, of which $10,000 is prepaid expenses. The company’s current assets consist
of cash, marketable securities, accounts receivable, prepaid expenses, and inventory. Brewster
Company’s inventory must be:
Chapter 15 – Financial Statement Analysis
55. Cotuit Company has a current ratio of 3.2 and an acid-test ratio of 2.4. The company’s
current assets consist of cash, marketable securities, accounts receivable, and inventory. The
company’s inventory is $40,000. Cotuit Company’s current liabilities must be:
Chapter 15 – Financial Statement Analysis
56. Erastic Company has $14,000 in cash, $8,000 in marketable securities, $34,000 in account
receivable, $40,000 in inventories, and $42,000 in current liabilities. The company’s current
assets consist of cash, marketable securities, accounts receivable, and inventory. The
company’s acid-test ratio is closest to:
57. Fraser Company had $130,000 in sales on account last year. The beginning accounts
receivable balance was $10,000 and the ending accounts receivable balance was $14,000. The
company’s accounts receivable turnover was closest to:
Chapter 15 – Financial Statement Analysis
58. Grasse Company had $160,000 in sales on account last year. The beginning accounts
receivable balance was $10,000 and the ending accounts receivable balance was $12,000. The
company’s average collection period was closest to:
59. Harbor Company, a retailer, had cost of goods sold of $170,000 last year. The beginning
inventory balance was $20,000 and the ending inventory balance was $24,000. The
company’s inventory turnover was closest to:
Chapter 15 – Financial Statement Analysis
60. Irastan Company, a retailer, had cost of goods sold of $250,000 last year. The beginning
inventory balance was $28,000 and the ending inventory balance was $20,000. The
company’s average sale period was closest to:
61. Deschambault Corporation’s total current assets are $260,000, its noncurrent assets are
$700,000, its total current liabilities are $130,000, its long-term liabilities are $510,000, and
its stockholders’ equity is $320,000. Working capital is:
Chapter 15 – Financial Statement Analysis
62. Ladabouche Corporation’s total current assets are $390,000, its noncurrent assets are
$630,000, its total current liabilities are $330,000, its long-term liabilities are $420,000, and
its stockholders’ equity is $270,000. The current ratio is closest to:
Chapter 15 – Financial Statement Analysis
63. Data from Adamis Corporation’s most recent balance sheet appear below:
The company’s acid-test ratio is closest to:
Chapter 15 – Financial Statement Analysis
64. Bonine Corporation has provided the following data:
The accounts receivable turnover for this year is closest to:
Chapter 15 – Financial Statement Analysis
65. Data from Concepcion Corporation’s most recent balance sheet and income statement
appear below:
The average collection period for this year is closest to: