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Boyle Corporation had the following comparative current assets Figure 16-3. The current asset section of the balance sheets of the Shamrock Company as of June 30, 2014 and 2013 is presented below. 2014 2013 Cash and cash equivalents $ 75,000 $ 58,800 Trade accounts receivable, net 157,500 193,200 Inventory 208,200 253,400 Other current assets 18,400 15,500 Total current assets $ 459,100 $ 520,900 ...

Other / Other 22 Apr 2016

The company's inventory turnover ratio was closest to 1. Kringle Company, a retailer, had cost of goods sold of $1,400,000 last year. The beginning inventory balance was $125,000 and the ending inventory balance was $142,000. The company's inventory turnover ratio was closest to a. 10.49. b. 5.24. c. 11.20. d. 9.86. 2. Lost Shoe Company, a retailer, had cost of goods sold of $220,000 last year. The beginning inventory bala ...

Other / Other 22 Apr 2016

Selected financial data from Harlow Company for the most recent year 1. Fastlane Company has 50,000 shares of common stock and 20,000 shares of preferred stock outstanding. There was no change in the number of common or preferred shares outstanding during the year. Preferred stockholders received dividends this year totaling $120,000. Common stockholders received dividends totaling $200,000. If the dividend payout ratio for the year was ...

Other / Other 22 Apr 2016

Which company appears to have the best liquidity position Figure 16-5. The following information that was obtained from the 2014 and 2013 financial statements of James Company, Norris Corporation, and Zorro Company: (In millions) James Norris Zorro Accounts receivable 12/31/14 $ 33,000 $ 22,000 $ 41,500 12/31/13 30,000 12,800 42,600 Inventory 12/31/14 $ 2,600 $ 12,600 $ 54,200 12/31/13 23,900 32,800 44,000 ...

Other / Other 22 Apr 2016

Compute the net income reported by Eaton Corporation 1. Eaton Corporation had net income of $6,000,000 in 2010. Using 2014 as the base year, net income decreased by 70% in 2013 and increased by 140% in 2014. Required: Compute the net income reported by Eaton Corporation for 2013 and 2014. 2. The following items were taken from the financial statements of Ritz Inc., over a 4-year period: Item 2014 2013 2012 2011 Net Sales $800, ...

Other / Other 22 Apr 2016

A number of online sources contain competitive information TRUE/FALSE 1. Industrial statistics should be taken as absolute norms as far as standards for comparability. 2. Terms of sale can produce statistical variations among companies within the same industry. 3. A number of online sources contain competitive information on individual company's ratios. 4. Industrial figures, standards and statistics should be used w ...

Other / Other 22 Apr 2016

Which one of the following is not a characteristic generally 1. Trend analysis is analysis a. of percentage changes over several years. b. in which all items are presented as a percentage of one selected item on a financial statement. c. in which a statistic is calculated for the relationship between tow items on a single financial statement or for two items on different financial statements. d. of all ratios that increased or decreas ...

Other / Other 22 Apr 2016

How long it takes a company to turn its receivables 1. For meaningful analysis, ratios should be compared with a ____________. 2. The ________________ is a measure of the ability of a company to pay its short-term liabilities out of short-term assets. 3. The _________________ is a measure of liquidity that compares only the most liquid assets with current liabilities. 4. How long it takes a company to turn its receivable ...

Other / Other 22 Apr 2016

Measures the earning ability of a company MATCHING Match the classifications of ratios with each description. a. Liquidity Ratio b. Leverage Ratio c. Profitability Ratio d. Horizontal Analysis e. Trend Analysis 1. Measures the earning ability of a company 2. Measures the ability of a company to meet long and short term obligations 3. Measures the degree of protection provided to company creditors 4. Measures the a ...

Other / Other 22 Apr 2016

Companies in the same industry may use different accounting methods TRUE/FALSE 1. An example of horizontal analysis is the increase in cost of goods sold by 25% from 2013 to 2014. 2. For meaningful analysis, ratios should be compared with a standard. 3. Companies in the same industry may use different accounting methods, diminishing the usefulness of some industrial averages. 4. Small sample sizes for an industr ...

Other / Other 22 Apr 2016