Cash Accounts Receivable, Net Inventory Property, Plant and Equipment, net Total Assets Accounts Payable Mortgage Payable Common Stock, par $5 Retained Earnings Total Liabilities and Owners' Equity Sales for the year Cost of Goods Sold Net Income for the year 2021 25 65 50 140 280 50 100 90 40 280 4. Calculate the earnings per share. Show work. A. $3.00 B. $4.00 C. $2.00 D. $2.50 $100 50 36 2. Using horizontal analysis, what is the change in inventory? A. 35% increase B. 35% decrease C. 25% increase D. 25% decrease Using the information above, answer the following questions. 1. Using vertical analysis, what percentage is Mortgage Payable for year 2021? Show work. A. 34.23% B. 35.71% C. 40% D. 36.71% 3. Calculate the Accounts Receivable Turnover. Show work A. 1.6 times B. 1.6% C. 1.8 times D. 1.8 % 2020 30 60 40 155 285 60 110 90 25 285

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
Problem 1Q: Define each of the following terms: Liquidity ratios: current ratio; quick, or acid test,...
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Question
Cash
Accounts Receivable, Net
Inventory
Property, Plant and Equipment, net
Total Assets
Accounts Payable
Mortgage Payable
Common Stock, par $5
Retained Earnings
Total Liabilities and Owners' Equity
Sales for the year
Cost of Goods Sold
Net Income for the year
2021
25
65
50
140
280
50
100
90
40
280
4. Calculate the earnings per share. Show work.
A. $3.00
B. $4.00
$100
C. $2.00
D. $2.50
50
36
2. Using horizontal analysis, what is the change in inventory?
A. 35% increase
B. 35% decrease
C. 25% increase
D. 25% decrease
Using the information above, answer the following questions.
1. Using vertical analysis, what percentage is Mortgage Payable for year 2021? Show work.
A. 34.23%
B. 35.71%
C. 40%
D. 36.71%
3. Calculate the Accounts Receivable Turnover. Show work
A. 1.6 times
B. 1.6%
C. 1.8 times
D. 1.8%
2020
30
60
40
155
285
60
110
90
25
285
Transcribed Image Text:Cash Accounts Receivable, Net Inventory Property, Plant and Equipment, net Total Assets Accounts Payable Mortgage Payable Common Stock, par $5 Retained Earnings Total Liabilities and Owners' Equity Sales for the year Cost of Goods Sold Net Income for the year 2021 25 65 50 140 280 50 100 90 40 280 4. Calculate the earnings per share. Show work. A. $3.00 B. $4.00 $100 C. $2.00 D. $2.50 50 36 2. Using horizontal analysis, what is the change in inventory? A. 35% increase B. 35% decrease C. 25% increase D. 25% decrease Using the information above, answer the following questions. 1. Using vertical analysis, what percentage is Mortgage Payable for year 2021? Show work. A. 34.23% B. 35.71% C. 40% D. 36.71% 3. Calculate the Accounts Receivable Turnover. Show work A. 1.6 times B. 1.6% C. 1.8 times D. 1.8% 2020 30 60 40 155 285 60 110 90 25 285
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