# Chapter 14 Practice Quiz 1

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question
Comparisons of data within a company are an example of the following comparative basis:
Intracompany.
question
In horizontal analysis, each item is expressed as a percentage of the:
base year amount.
question
In vertical analysis, the base amount for depreciation expense is generally:
net sales.
question
The following schedule is a display of what type of analysis Amount/Percent Current assets \$200,000/25% Property, plant, and equipment 600,000/75% Total assets \$800,000/100%
vertical analysis
question
Sammy Corporation reported net sales of \$300,000, \$330,000, and \$360,000 in the years, 2009, 2010, and 2011, respectively. If 2009 is the base year, what is the trend percentage for 2011?
120%
question
Which of the following measures is an evaluation of a firm's ability to pay current liabilities?
Both acid-test ratio and current ratio
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A measure useful in evaluating the efficiency in managing inventories is:
c. Both (a) and (b).
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Financial statement information follows as of the end of each year. 2011 2010 Inventory \$54,000 \$48,000 Current assets 81,000 106,000 Total assets 382,000 326,000 Net sales 784,000 697,000 Cost of goods sold 306,000 277,000 Compute the days in inventory for 2011.
60.8 days
question
Financial statement information follows as of the end of each year. 2011 2010 Inventory \$54,000 \$48,000 Current assets 81,000 106,000 Total assets 382,000 326,000 Current liabilities 27,000 36,000 Total liabilities 102,000 88,000 Compute the current ratio for 2011.
3.0:1
question
Financial statement information follows as of the end of each year. 2011 2010 Inventory \$54,000 \$48,000 Net sales 784,000 697,000 Cost of goods sold 306,000 277,000 Net income 134,000 90,000 Compute the profit margin ratio for 2011.
17.1%
question
Financial statement information follows as of the end of each year. 2011 2010 Stockholders' equity \$280,000 \$238,000 Net income 134,000 90,000 Tax expense 22,000 18,000 Interest expense 12,000 12,000 Dividends paid to preferred stockholders 20,000 20,000 Dividends paid to common stockholders 15,000 10,000 Compute the return on common stockholders' equity for 2011.
44.0%
question
Financial statement information follows as of the end of each year. 2011 2010 Stockholders' equity \$280,000 \$238,000 Net income 134,000 90,000 Tax expense 22,000 18,000 Interest expense 12,000 12,000 Dividends paid to preferred stockholders 20,000 20,000 Dividends paid to common stockholders 15,000 10,000 Compute the times interest earned for 2011.