fsa3e quiz mod02
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Module 2 – Financial Statement Analysis & Valuation, 3 edition by Easton, McAnally, Sommers
& Zhang
Practice Quiz
1. Following are selected income statement and balance sheet data for companies in different industries. Which company reports the highest ratio of net income to equity?
a.
b.
c.
d.
Harley-Davidson
Nike, Inc.
Starbucks Corp.
Target Corp.
2. Following are selected income statement and balance sheet data for companies in different industries. Which company has financed itself with the highest percentage of liabilities to equity?
a.
b.
c.
d.
Harley-Davidson
Nike, Inc.
Starbucks Corp.
Target Corp.
Cambridge Business Publishers, ©2013
Quiz 2-1
Financial Statement Analysis & Valuation, 3rd Edition
3. Following are selected accounts for Target Corporation. Compute its net profit margin.
a.
4.10%
b.
3.82%
c.
7.83%
d. 11.22%
4. Indicate which of the following items would be reported in the balance sheet.
A. Net income
B. Retained earnings
C. Depreciation expense
a.
b.
c.
d.
D. Accumulated depreciation
E. Wages expense
F. Wages payable
G. Interest expense
H. Interest payable
I. Sales
C, E, G, I
A, D, F, G
B, C, E, H
B, D, F, H
5. Healy Corporation recorded service revenues of $200,000 in 2012, of which $80,000 were on credit and $120,000 were for cash. Moreover, of the $80,000 credit sales for 2012, Healy collected $20,000 cash on those receivables before year-end 2012. The company also paid $40,000 cash for 2012 wages. Its employees also earned another $20,000 in wages for 2012, which were not yet paid at year-end 2012. Compute the company’s net income for 2012.
a.
b.
c.
d.
$140,000
$ 80,000
$ 60,000
$160,000
Cambridge Business Publishers, ©2013
Quiz 2-2
Financial Statement Analysis & Valuation, 3rd Edition
6. Plexi Corporation recorded service revenues of $150,000 in 2012, of which $80,000 were on credit and $70,000 were for cash. Moreover, of the $80,000 credit sales for 2012, Plexi collected $30,000 cash on those receivables before
Module 2 – Financial Statement Analysis & Valuation, 3 edition by Easton, McAnally, Sommers
& Zhang
Practice Quiz
1. Following are selected income statement and balance sheet data for companies in different industries. Which company reports the highest ratio of net income to equity?
a.
b.
c.
d.
Harley-Davidson
Nike, Inc.
Starbucks Corp.
Target Corp.
2. Following are selected income statement and balance sheet data for companies in different industries. Which company has financed itself with the highest percentage of liabilities to equity?
a.
b.
c.
d.
Harley-Davidson
Nike, Inc.
Starbucks Corp.
Target Corp.
Cambridge Business Publishers, ©2013
Quiz 2-1
Financial Statement Analysis & Valuation, 3rd Edition
3. Following are selected accounts for Target Corporation. Compute its net profit margin.
a.
4.10%
b.
3.82%
c.
7.83%
d. 11.22%
4. Indicate which of the following items would be reported in the balance sheet.
A. Net income
B. Retained earnings
C. Depreciation expense
a.
b.
c.
d.
D. Accumulated depreciation
E. Wages expense
F. Wages payable
G. Interest expense
H. Interest payable
I. Sales
C, E, G, I
A, D, F, G
B, C, E, H
B, D, F, H
5. Healy Corporation recorded service revenues of $200,000 in 2012, of which $80,000 were on credit and $120,000 were for cash. Moreover, of the $80,000 credit sales for 2012, Healy collected $20,000 cash on those receivables before year-end 2012. The company also paid $40,000 cash for 2012 wages. Its employees also earned another $20,000 in wages for 2012, which were not yet paid at year-end 2012. Compute the company’s net income for 2012.
a.
b.
c.
d.
$140,000
$ 80,000
$ 60,000
$160,000
Cambridge Business Publishers, ©2013
Quiz 2-2
Financial Statement Analysis & Valuation, 3rd Edition
6. Plexi Corporation recorded service revenues of $150,000 in 2012, of which $80,000 were on credit and $70,000 were for cash. Moreover, of the $80,000 credit sales for 2012, Plexi collected $30,000 cash on those receivables before