Financial Statement analysis Self Test Chapter 13
A detailed annual report, consisting of audited financials and in-depth information about the company, its key officers and employees , that is submitted annually to the S E C is called a
10k
If a company's stock is selling for 60 and its earnings per share is 3, the its price earning Ratio (PE Ratio) is
20
An inventory Turnover of 4 times means the company probably has inventory on hand equal to
3 month's sales
Net Credit sales divided by average accounts receivable is:
Accounts receivable turnover
Inventory Turnover is calculated by dividing "Average Inventory" into
Cost of goods sold
In an annual report, an auditor's opinion applies to the four formal financial statements, the supporting notes to the financials and the financial forecasts.
False, no forecasts
The Type of Balance Sheet and Income Statement analysis that shows for each line item, the dollar amount and percentage increase or decrease from one year to the next is called
Horizontal analysis
When converting an Income statement to percentages by the vertical analysis method, the 100% figure is always:
Net Sales
In an Annual Report, Social Responsibility Statements would most likely be found in the:
President's letter to the stockholders
When converting a Balance sheet to percentages by the Vertical methodm the 100% figure is always:
Total assets
An "unusual and infrequent" natural disaster would be reported on the income statement as an "Extraordinary Item"?
True
Current Assets divided by current liabilities is called the current ratio
True
Current Assets minus current liabilities is called working capital
True
Free Cash Flow is the Total cash flow from the cash flow report less capital expenditures and less cash dividends
True
Payout Ratio is calculated as Cash Dividends paid on common stock divided by net Income
True
When an auditor's opinion contains the words "except for " or "subject to" , the opinion is said to be "qualified"
True