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Exam 18: Analyzing Financial Statements

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Question 31

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Tri-Sports had net sales of $765,000 and average total assets of $658,225.Calculate the total asset turnover.

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$765,000/$...

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Question 32

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The days' sales in inventory is calculated by dividing ending inventory by cost of goods sold and multiplying the result by 365.

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Question 33

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The average number of times a company's inventory is sold during an accounting period,calculated by dividing cost of goods sold by the average merchandise inventory balance,is the:

The debt ratio is calculated by dividing total assets by total liabilities.

Maggis has current assets of $19,000 and current liabilities of $9,500.Its current ratio is 1.6 to 1.

Vente had gross sales of $2,860 million and net sales of $2,730 million.Its average total assets for the period were $2,350 million.Vente's total asset turnover was:

Profit margin is:

Chapter's had net sales of $26,125 million.Its cost of goods sold was $16,022 million.Its net income was $997 million.Its gross profit ratio was:

Accounts receivable turnover is calculated by dividing net sales by average accounts receivable.

Three of the most common tools of financial analysis include horizontal analysis,vertical analysis,and ratio analysis.

Quick assets include cash,inventory,and receivables.

The current ratio:

The merchandise turnover ratio is used to measure profitability.

Stride Rite has liabilities of $112 million and total assets of $350 million.Its debt ratio is 30.4%.

In April,Stride Rite had $4,875 million in sales and $990 million in accounts receivable.For the same period,Geox had $5,595 million in sales and $834 million in accounts receivable.Calculate the days' sales uncollected for both companies.Which company is doing a better job at managing collection of its receivables?

West Coast Kids had cost of goods sold of $3,000 million,ending inventory of $1,500 million,and average inventory of $1,000 million.The merchandise turnover is:

Explain the four building blocks of financial analysis.

A merchandising company's ability to pay its short-term obligations depends on how quickly it sells its merchandise inventory.

Describe vertical financial statement analysis.

Trend analysis is also called: