Practice Quiz Module 5

From the given Statement of Financial Position and Income statement, solve for the following: 1) Compute the FINANCIAL ratios that measure: c) Operating Activity -Accounts Receivable Turnover -Days Sales in Receivable -Inventory Turnover -Days in Inventory d) Profitability -Earnings per Share -Return on Asset -Return on Equity -Operating Profit Margin -Net Profit Margin   2) Analyze, interpret, and draw conclusions based on the results of your computations.

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Why is it advantageous to use comparative financial statements to analyze a company's performance rather than a single date?  Select five ratios, describe how each is calculated and what information it provides

How can diff erences in accounting methods aff ect fi nancial ratio comparisons between companies, and what are some adjustments analysts make to reported fi nancials to facilitatecomparability among companies.

One of the most important applications of ratio analysis is to compare a company’s performance with that of other players in the industry or to compare its own performance over a period of time. Such analyses are referred to as a comparative analysis and trend analysis, respectively. A) A common size analysis requires the representation of financial statement data relative to a single financial statement item (or base account or value). What is the most commonly used base item for a common size balance sheet? Net income   Earnings before interest and taxes   Total assets   Net sales     Suppose you are conducting an analysis of the financial performance of Blue Hamster Manufacturing Inc. over the past three years. The company did not issue new shares during these three years and has faced some operational difficulties. The company has thus pilot tested some new forecasting strategies for better operations management. You have collected the company’s relevant…

I need assistance with Questions 1 and 2

Which of the following would an analyst most likely be able to determine from acommon-size analysis of a company’s balance sheet over several periods?A . An increase or decrease in sales.

Which of the following is the most useful in analyzing companies of different sizes? a.comparative statements b.common-sized financial statements c.price-level accounting d.audit report

Ratios provide a _________ measure of a company’s performance and condition. a. Gross b. Relative c. Qualitative d. Definitive

Studypug.com   Which of the following statements is not true of horizontal analysis?   a.Each item on a financial statement is compared with a total amount from the same statement. b.It can be useful in analyzing trends. c.Each item on a current financial statement is compared to the same item on an earlier statement. d.It can be useful in interpreting the financial performance of a company.

Which of the following is used to determine how the sales revenue of a company has changed from one year to the next? A horizontal analysis of the income statement B vertical analysis of the income statement C vertical analysis of the balance sheet D horizontal analysis of the balance sheet

A company can use comparisons of its financial data to the data of other companies and industry averages to evaluate its position. Group of answer choices True False

One of the most important applications of ratio analysis is to compare a company’s performance with that of other players in the industry or to compare its own performance over a period of time. Such analyses are referred to as a comparative analysis and trend analysis, respectively. A common size analysis requires the representation of financial statement data relative to a single financial statement item (or base account or value). What is the most commonly used base item for a common size balance sheet? A. Earnings before interest and taxes   B. Total assets   C. Net sales   D. Net income     Suppose you are conducting an analysis of the financial performance of Blue Hamster Manufacturing Inc. over the past three years. The company did not issue new shares during these three years and has faced some operational difficulties. The company has thus pilot tested some new forecasting strategies for better operations management. You have collected the company’s…