1, Stockholders’ equity is an important heading in a corporate balance sheet. Let’s begin the discussion of stockholders’ equity by asking a question: How is the Stockholders’ Equity section of a corporate balance sheet different from that in a single-owner business? At least a paragraph with APA
2, DIFFERENT TOOLS OF FINANCIAL ANALYSIS_WEEK 8
There are different tools for analyzing the financial statements of a company, such as horizontal analysis, vertical analysis, ratios for measuring financial health and profitability, and so forth. But before we begin using these tools, it is important to know the purpose of each tool.
Why do we need different tools for analyzing financial statements? Don’t the numbers in the financial statements speak for themselves?
Response at least a paragraph with APA
Sage Hill Inc. has the following Income Statement (in millions):
SAGE HILL INC.
Income Statement
For the Year Ended December 31, 2023
Net Sales $380
Cost of Goods Sold 266
Gross Profit 114
Operating Expenses 48
Net Income $ 66
Using vertical analysis, what percentage is assigned to gross profit?
100%
30.0%
70.0%
42.9%
2, Given the following data for the Blue Spruce Corp.:
Current liabilities $580
Long-term debt 550
Common stock 880
Retained earnings 190
Total liabilities & stockholders’ equity $2200
How would common stock appear on a common size balance sheet?
40%
106%
42%
32%
3, Whispering Winds Corp. reported net sales of $534400, $735000, and $801600 in the years 2021, 2022, and 2023, respectively. If 2021 is the base year, what percentage do 2023 sales represent of the base?
50%
109%
150%
67%
4, Assume the following sales data for a company:
2023 $966000
2022 871000
2021 696800
If 2021 is the base year, what is the percentage increase in sales from 2021 to 2022?
139%
25%
125%
39%
5, The following schedule is a display of what type of analysis?
Amount Percent
Current assets $100,000 25%
Property, plant, and equipment 300,000 75%
Total assets $400,000 100%
Differential analysis
Ratio analysis
Horizontal analysis
Vertical analysis
6, The use of alternative accounting methods
is not a problem in ratio analysis because the footnotes disclose the method used.
is only a problem in ratio analysis with respect to inventory.
is not a problem in ratio analysis since eventually all methods will lead to the same end.
may be a problem in ratio analysis even if disclosed.
7, An income statement would not include
income from operations.
dividends paid.
other revenue and gains.
discontinued operations.
8, Which one of the following is not a tool in financial statement analysis?
Ratio analysis
Vertical analysis
Circular analysis
Horizontal analysis
9,If Year 1 sales equal $750, Year 2 sales equal $765, and Year 3 sales equal $1090, the percentage to be assigned for Year 2 in a trend analysis, assuming that Year 1 is the base year, is
98%.
102%.
142%.
145%.
10, Marin Inc. has an investment in trading securities of $154000. This investment experienced an unrealized loss of $8400 during the current year. Assuming a 32% tax rate, the amount of this loss that would report as part of other comprehensive income would be:
$49280 loss.
$104720 loss.
$154000 loss.
None.