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Inventory turnover is calculated as:


A) average inventory for the period / cost of goods sold
B) cost of goods sold / average inventory for the period
C) gross margin for the period / average inventory for the period
D) average inventory for the period / gross margin for the period

E) A) and D)
F) None of the above

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Briefly discuss what information is provided by the following ratios: a.inventory turnover b.accounts receivable turnover c.days' sales in receivables

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a.Inventory turnover indicates the salab...

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Bench marking involves comparing your company's results to a standard set by other.

A) True
B) False

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Following is a comparative balance sheet for Barking Shark International Corporation: Following is a comparative balance sheet for Barking Shark International Corporation: Current assets Current liabilities Shareholders' equity Total liabilities and shareholders' Required: a.Calculate and show the percentages that would appear in a horizontal analysis for this balance sheet. b.Indicate any positive or negative developments from one year to the next. Following is a comparative balance sheet for Barking Shark International Corporation: Current assets Current liabilities Shareholders' equity Total liabilities and shareholders' Required: a.Calculate and show the percentages that would appear in a horizontal analysis for this balance sheet. b.Indicate any positive or negative developments from one year to the next. Current assets Following is a comparative balance sheet for Barking Shark International Corporation: Current assets Current liabilities Shareholders' equity Total liabilities and shareholders' Required: a.Calculate and show the percentages that would appear in a horizontal analysis for this balance sheet. b.Indicate any positive or negative developments from one year to the next. Following is a comparative balance sheet for Barking Shark International Corporation: Current assets Current liabilities Shareholders' equity Total liabilities and shareholders' Required: a.Calculate and show the percentages that would appear in a horizontal analysis for this balance sheet. b.Indicate any positive or negative developments from one year to the next. Current liabilities Following is a comparative balance sheet for Barking Shark International Corporation: Current assets Current liabilities Shareholders' equity Total liabilities and shareholders' Required: a.Calculate and show the percentages that would appear in a horizontal analysis for this balance sheet. b.Indicate any positive or negative developments from one year to the next. Following is a comparative balance sheet for Barking Shark International Corporation: Current assets Current liabilities Shareholders' equity Total liabilities and shareholders' Required: a.Calculate and show the percentages that would appear in a horizontal analysis for this balance sheet. b.Indicate any positive or negative developments from one year to the next. Shareholders' equity Following is a comparative balance sheet for Barking Shark International Corporation: Current assets Current liabilities Shareholders' equity Total liabilities and shareholders' Required: a.Calculate and show the percentages that would appear in a horizontal analysis for this balance sheet. b.Indicate any positive or negative developments from one year to the next. Total liabilities and shareholders' Following is a comparative balance sheet for Barking Shark International Corporation: Current assets Current liabilities Shareholders' equity Total liabilities and shareholders' Required: a.Calculate and show the percentages that would appear in a horizontal analysis for this balance sheet. b.Indicate any positive or negative developments from one year to the next. Required: a.Calculate and show the percentages that would appear in a horizontal analysis for this balance sheet. b.Indicate any positive or negative developments from one year to the next.

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Requirement
a.
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The rate of return on net sales is calculated as:


A) gross margin / net sales
B) net income / net sales
C) operating income / net sales
D) dividends paid during the year / net sales

E) All of the above
F) A) and B)

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From the list below,select the ratio(s) that help in the analysis of working capital:


A) current ratio
B) quick ratio
C) debt ratio
D) current ratio and quick ratio

E) None of the above
F) B) and C)

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Which of the following would be most likely to reveal that cost of goods sold increased by $75,000 from 2016 to 2017?


A) horizontal analysis
B) trend analysis
C) vertical analysis
D) ratio analysis

E) C) and D)
F) B) and C)

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Which of the following ratios measures profitability?


A) rate of return on total assets
B) times-interest-earned ratio
C) inventory turnover
D) book value per share of common shares

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

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The times-interest-earned ratio is calculated as:


A) income from operations / interest expense
B) net income / interest expense
C) net income after taxes + interest expense/interest expense
D) income from operations - interest expense/interest expense

E) B) and C)
F) C) and D)

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Hamilton Corporation reports the following data: Hamilton Corporation reports the following data: If net sales increases by 15%,and cost of goods sold increases by 20%,gross margin would: A) increase by 4.6% B) decrease by 4.6% C) decrease by 4.4% D) increase by 4.4% If net sales increases by 15%,and cost of goods sold increases by 20%,gross margin would:


A) increase by 4.6%
B) decrease by 4.6%
C) decrease by 4.4%
D) increase by 4.4%

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

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The following data represent selected information from the comparative income statement and balance sheet for Hot Rolled Corporation for the years ended December 31,2017 and 2016: The following data represent selected information from the comparative income statement and balance sheet for Hot Rolled Corporation for the years ended December 31,2017 and 2016: •10,000 shares of common shares have been issued and outstanding since the company was established.They had a market value of $90 per share on December 31,2016,and they were selling for $91.50 on December 31,2017. Refer to the table above.The inventory turnover for Hot Rolled Corporation for the year ended December 31,2017,was: A) 4.00 B) 3.86 C) 3.61 D) 3.49 •10,000 shares of common shares have been issued and outstanding since the company was established.They had a market value of $90 per share on December 31,2016,and they were selling for $91.50 on December 31,2017. Refer to the table above.The inventory turnover for Hot Rolled Corporation for the year ended December 31,2017,was:


A) 4.00
B) 3.86
C) 3.61
D) 3.49

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

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Most investors only need one year's worth of financial information to evaluate an organization.

A) True
B) False

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A high current ratio means that a company's current assets represent a relatively large portion of total assets.

A) True
B) False

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Benchmarking is the process of comparing a company to a standard set by one or more other companies,with a view toward improvement.

A) True
B) False

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A very high accounts receivable turnover would most likely indicate that:


A) net credit sales for the year have been understated
B) policies for extending credit to customers are too tight
C) accounts receivable balances have been overstated
D) the company is unsuccessful in its efforts to collect cash from customers

E) A) and D)
F) A) and B)

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Benchmarking is the practice of comparing a company to a standard set by other companies with similar characteristics.

A) True
B) False

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A common size statement aids in comparing different companies as their amounts are stated in percentages of the total base rather than numbers.

A) True
B) False

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On a statement of cash flows,which of the following is a sign of a healthy company?


A) Investing activities include more sales of long-term assets than purchases.
B) Financing activities are dominated by borrowing.
C) Operating activities are the major source of cash.
D) Net cash provided by operating activities is less than net income.

E) A) and D)
F) None of the above

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The current ratio is calculated as:


A) total assets / total liabilities
B) current assets / total liabilities
C) current assets × current liabilities
D) current assets / current liabilities

E) A) and C)
F) A) and D)

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When performing vertical analysis on a balance,cash is compared to the total current assets figure.

A) True
B) False

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