DATA ANALYTICS FOR ACCOUNTING W/CONNECT
1st Edition
ISBN: 9781260574449
Author: RICHARDSON
Publisher: MCG
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Question
Chapter 4, Problem 3P
To determine
Identify the chart that is suitable for comparing the earnings per share over many periods. Also, explain if there are only a few periods.
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Students have asked these similar questions
Horizontal analysis :
a. Is a technique for evaluating a series of financial statement data over a period of time.
b. Is also known as trend analysis
c. Is used to determine the increase or decrease that has taken place.
d. Is expressed as either an amount or a percentage.
e. All of the above.
2
Tiger Audio declared and paid a cash dividend of $7,925 in the current year. Its comparative financial
statements, prepared at December 31, reported the following summarized information:
Current
Previous
Income Statement
$342,000 $281,000
175,650
166,350
63,600
6,400
96,350
28,905
Sales Revenue
Cost of Goods Sold
159,000
122,000
52,930
5,670
63,400
19,020
Gross Profit
Operating Expenses
Interest Expense
Income before Income Tax Expense
Income Tax Expense (30%)
Net Income
$ 67,445
$ 44,380
Balance Sheet
$ 72,520
32,900
49,000
151,000
$305,420
$ 45, 200
28,000
46,000
138, 200
Cash
Accounts Receivable, Net
Inventory
Property and Equipment, Net
Total Assets
$257,400
$ 39,000
4,800
101,900
145,700
39,400
120,320
$ 37,000
4,000
116, 200
157, 200
39,400
60,800
Accounts Payable
Income Tax Payable
Note Payable (long-term)
Total Liabilities
Common Stock (par $1)
Retained Earnings
Total Liabilities and Stockholders' Equity $305,420 $257,400
Which of the following statements about earnings per share (EPS) is
correct?
Multiple Choice
EPS is an indicator of how well a company will
perform in the future.
Net income in dollar amount is a better measure
to use in comparing different companies.
EPS can be used to compare companies of
different sizes.
EPS is expected to remain constant over a
period of time.
Chapter 4 Solutions
DATA ANALYTICS FOR ACCOUNTING W/CONNECT
Ch. 4 - Prob. 1MCQCh. 4 - In the late 1960s, Ed Altman developed a model to...Ch. 4 - Justin Zobel suggests that revising your writing...Ch. 4 - Prob. 4MCQCh. 4 - The Fahrenheit scale of temperature measurement...Ch. 4 - _______ data would be considered the least...Ch. 4 - ________ data would be considered the most...Ch. 4 - Prob. 8MCQCh. 4 - Exhibit 4-8 gives chart suggestions for what data...Ch. 4 - Prob. 10MCQ
Ch. 4 - Prob. 1DQCh. 4 - Prob. 2DQCh. 4 - Prob. 3DQCh. 4 - Prob. 4DQCh. 4 - Prob. 5DQCh. 4 - Based on the data from datavizcatalogue.com, how...Ch. 4 - Prob. 7DQCh. 4 - Prob. 8DQCh. 4 - Prob. 9DQCh. 4 - Prob. 1PCh. 4 - Prob. 2PCh. 4 - Prob. 3PCh. 4 - According to Exhibit 4-8, which is the best chart...Ch. 4 - Prob. 5PCh. 4 - Prob. 6PCh. 4 - Prob. 7P
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Similar questions
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- 4. How do horizontal analysis and vertical analysis of financial statements differ? 5. “Financial statement users should focus attention on each item showing a large percentage change from one year to the next.” Is this statement correct? Why? 6. What are trend percentages and how are they calculated? What pitfalls must financial statement users avoid when preparing trend percentages? 7. What are common-size financial statements and how are they used? 8. What item is the key figure (that is, 100 percent) in a common-size income statement? A common-size balance sheetarrow_forwardWhy do you think The Gap reports more than one year of data in its financial statements?arrow_forwardWhich 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.arrow_forward
- Using the data in the table:, a. What was the average annual return of Microsoft stock from 2005-2017? b. What was the annual volatility for Microsoft stock from 2005-2017? a. What was the average annual return of Microsoft stock from 2005-2017? The average annual return is %. (Round to two decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Realized Return for the S&P 500, Microsoft, and Treasury Bills, 2005-2017 S&P 500 Realized Return Microsoft Realized Return Dividends Paid* Year End 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 S&P 500 Index 1211.92 1248.29 3.00% 4.80% 1418.30 1468.36 903.25 4.70% 1.50% 0.10% 0.10% 1115.10 1257.64 1257.61 0.00% 1426.19 0.10% 1848.36 0.00% 0.00% 2058.90 2043.94 0.00% 0.20% 2238.83 2673.61 0.80% *Total dividends paid by the 500 stocks in the portfolio, based on the number of shares of each stock in the index, adjusted until the end of the year, assuming they were…arrow_forwardWhen performing a horizontal analysis on an income statement, the percentage change inany individual item is calculated by dividing the dollar amount of the change from the baseperiod to the current period bya. the base period amount.b. the current period amount.c. the amount estimated for the future period.d. the average of the base and the current period amounts.arrow_forwardVertical analysis compares each item on a financial statement with: a corresponding item on a different statement of the same year. B. a total or key amount on the same statement. an industry average. a total or key amount on the financial statement of the previous period.arrow_forward
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