Listed below in the left column is a specific ratio. In the right column is a business transaction.
Indicate the effect of this transaction on the given ratio. Use + for increase, - for decrease,
and 0 for no effect.
Earnings per sh
Answer the questions below.
Firm Using LIFO Inventory
Selected Balance Sheet Data:
Total current assets
Total current liabilities
Total long-term debt
The following data are presented for Zero Company.
Earnings before interest and taxes
Market value of equity
Book value of total debt
In 2011, Firm X has net income of $182,000, income tax of $80,000, and interest expense of
Compute the degree of financial leverage.
In 2012, if earnings before interest and tax increase by 10%, what should be the
change in net income?
The following data relate to Sparrow Company for the current year.
Income before extraordinary item
Less: Preferred stock dividends
Income available to common stockholders
Net income available to common stockholders
Columbia Inc. reported the following financial data in its December 31, 2012, report to
Preferred Stock, 8%, $100 Par
Common Stock, $10 par, 20,000 Shares
Issued and Outstanding
Paid-In Capital in Excess of Par
For Bob and Jane, the assets and liabilities and the effective income tax rates are as follows at December
Pat and Lou Krammer purchased their home in Mt. Vernon in 1997 for $60,000. The unpaid mortgage is
$10,000. A new roof was added for $4,000 immediately after the purchase. Real estate prices in Mt.
Vernon increased 20% since the purchase. What
Finance 4328 Financial Statements Analysis
Comparative income statements for 2012 and 2011 follow.
Cost of Sales
Earnings Before Tax
Homework Chapter 7
FIN 4318 Financial Statements Analysis
The following information is computed from Fast Food Chain's annual report for 2012.
ADVANCED MICRO DEVICES, INC.
Consolidated Statements of Operations (In part)
Three Years Ended December 25, 2010
Cost of sales
Operating income (loss)
Question-1: (points 12)
Listed below are several accounting principles and assumptions.
Required: Match the letter of each principle or assumption or qualitative characteristic with the
a. Business entity
b. Going concern
c. Time pe
Question-1: (points 12)
An item of equipment acquired on January 1, at a cost of $100,000, has an estimated use of 50,000 hours.
During the first three years, the equipment was used 11,000, 8,000, and 7,000 hours, respectively. The
equipment has an estima