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Quiz-FS Analysis

This document contains a quiz on financial statement analysis with multiple choice and fill-in-the-blank questions. It asks the test taker to identify various financial ratios, compute ratio calculations, and analyze financial statement information to determine specific ratios for companies. The document provides financial data and asks the test taker to compute current, acid-test, receivables turnover, inventory turnover, times interest earned, debt to total assets, return on total assets, and other ratios. It aims to assess understanding of key financial ratios and calculations.

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Vergel Martinez
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© © All Rights Reserved
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Download as DOCX, PDF, TXT or read online on Scribd
106 views

Quiz-FS Analysis

This document contains a quiz on financial statement analysis with multiple choice and fill-in-the-blank questions. It asks the test taker to identify various financial ratios, compute ratio calculations, and analyze financial statement information to determine specific ratios for companies. The document provides financial data and asks the test taker to compute current, acid-test, receivables turnover, inventory turnover, times interest earned, debt to total assets, return on total assets, and other ratios. It aims to assess understanding of key financial ratios and calculations.

Uploaded by

Vergel Martinez
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Quiz in Financial Management

Financial Statement Analysis


“I can do all things through Him who gives me strength.”
Philippians 4:13

Name:__________________________ Date:_________________

I. For each of the ratios below, indicate by the appropriate code letter, whether it is Liquidity Ratio,
Asset Management Ratio, Debt Management Ratio, Profitability Ratio, and Market Value Ratio.

Code:
L= Liquidity Ratio
A= Asset Management Ratio
D= Debt Management Ratio
P= Profitability Ratio
M=Market Value Ratio

____1. Price-earnings ratio ____6. Current ratio

____2. Asset turnover ____7. Acid-test ratio

____3. Receivable turnover ____8. Debt to total assets ratio

____4. Earnings per share ____9. Times interest earned

____5. Payout ratio ____10. Inventory turnover

II. Match the ratios with the appropriate ratio computation by entering the appropriate letter in the
space provided.

A. Current ratio F. Times interest earned


B. Acid-test ratio G. Inventory turnover
C. Profit margin H. Average collection period
D. Asset turnover I. Days in inventory
E. Price-earnings ratio J. Payout ratio

_____1.Cost of Goods Sold


Average Inventory

_____2.Net Income
Net sales

_____3.Cash dividends per share


Earnings per share

_____4.Net sales
Average assets

_____5.Current assets
Current liabilities

_____6.365 days
Receivables turnover

_____7.Market price per share of stock


Earnings per share

_____8.365 days
Inventory turnover

_____9.Income before income taxes and interest expense


Interest expense

_____10.Cash +short term receivables +receivables (net)


Current liabilities

III. Selected financial statement data for Michael Company are presented below.

December 31, 2019 December 31,2018


Cash P20,000 P30,000
Short-term investments 25,000 18,000
Receivables (net) 100,000 80,000
Inventories 85,000 65,000
Total Current liabilities 100,000 90,000

During 2019, net sales were P810,000, and cost of goods sold was P615,000.

Instructions: Compute the following ratios at December 31, 2019. Show all computations.
(a) Current
(b) Acid-test
(c) Receivables turnover
(d) Inventory turnover

IV. Selected information from the comparative financial statements of Fryman Company for the year
ended December 31, appears below:

2019 2018
Accounts Receivable (net) P180,000 200,000
Inventory 140,000 160,000
Total assets 1,200,000 800,000
Current liabilities 140,000 110,000
Long-term debt 340,000 300,000
Net credit sales 1,520,000 700,000
Cost of goods sold 750,000 530,000
Interest expense 40,000 25,000
Income tax expense 60,000 29,000
Net income 160,000 85,000

Instructions: Answer the following questions relating to the year ended December 31, 2019. Show
computations.

1. Inventory turnover for 2019 is _______.


2. Times interest earned in 2019 is ______.
3. The debt to total assets ratio for 2019 is ______.
4. Receivables turnover for 2019 is ______.
5. Return on total assets for 2019 is ______.

V. The financial statements of Dobson Company appear below:

DOBSON COMPANY
Comparative Balance Sheet
December 31, 2018 & 2019
2019 2018
Assets P35,000 P40,000
Cash 15,000 60,000
Short-term investments 50,000 30,000
Accounts Receivable (net) 50,000 70,000
Property, plant and equipment (net) 250,000 300,000
Total assets P400,000 P500,000

Liabilities and stockholders’ equity


Accounts payable P10,000 P30,000
Short-term notes payable 40,000 90,000
Bonds payable 88,000 160,000
Common stock 160,000 145,000
Retained Earnings 102,000 75,000
Total liabilities and stockholder’s P400,000 P500,000
equity

DOBSON COMPANY
Income Statement
For the Year Ended December 31, 2019

Net sales P360,000


Cost of goods sold 198,000
Gross profit 162,000
Expenses
Administrative expenses 59,000
Selling expenses 40,000
Interest expense 12,000
Total expenses 111,000
Income before income taxes 51,000
Income tax expense 15,000
Net income P36,000

Additional information:
a. Cash dividends of P9,000 were declared and paid in 2019.
b. Weighted-average number of shares of common stock outstanding during 2019 was P30,000
shares.
c. Market value of common stock on December 31, 2019, was P21 per share.

Instructions: Using the financial statements and additional information, compute for the following
ratios for Coulter Company for 2019. Show all computations.

1. Current ratio _____.


2. Return on common stockholders’ equity _____.
3. Price-earnings ratio _____.
4. Acid-test ratio _____.
5. Receivables turnover _____.
6. Times interest earned _____.
7. Profit margin _____.
8. Days in inventory _____.
9. Payout ratio _____.
10. Return on assets _____.

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