26 terms

Financial Statement Analysis

ACC 201

Terms in this set (...)

income before income tax plus interest charges divided by interest charges
The number of times interest charges are earned is computed as
contains debt financing
A company that is leveraged is one that
Cost of Goods Sold / Average Inventory
inventory turnover
next year's budget
Corporate annual reports typically do not contain which of the following?
(Net Income - Preferred Dividends) / Shares of Common Stock Outstanding
EPS on Common Stock
Net Income / Average Stockholders' Equity
Rate Earned on Stockholders' Equity
(Net Income + Interest Expense) / Average Total Assets
Rate Earned on Total Assets
base year figure
In horizontal analysis each item is expressed as a percentage of the
net sales
In a common-sized financial statement, which of the following is given a percentage of 100 percent?
the ability to convert assets into cash.
the ability of a business to pay debts.
current position analysis
a company's ability to pay its current liabilities, working capital, current ratio, and quick ratio
Current Assets-Current Liabilities
working capital
Current Assets/Current Liabilities
current ratio
Quick Assets/Current Liabilities
quick ratio
Net Sales/Average Accounts receivable
accounts receivable turnover
Average Accounts Receivable/Average Daily Sales (365)
number of days' sales in receivables
Cost of Goods Sold/Average Inventory
inventory turnover
Average Inventory/Average Daily Cost of Goods Sold (365)
number of days' sales in inventory
Total Liabilities/Total Stockholders' Equity
ratio of liabilities to stockholders' equity
Income Before Income Tax+Interest Expense/Interest Expense
number of times interest charges are earned
Net Sales/Average Total Assets
ratio of net sales to assets
Net Income+Interest Expense/Average Total Assets
rate earned on total assets
Net Income/Average Total Stockholders' Equity
rate earned on stockholders' equity
Net Income-Preferred Dividends/Average Common Stockholders' Equity
rate earned on common stockholders' equity
Net Income-Preferred Dividends/Shares of Common Stock Outstanding
earnings per share (EPS) on common stock