Question
1)
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Rio Imports
Information from the financial statements are provided below:
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2015
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2014
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Current Liabilities
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$460,000
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$320,000
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Long-Term Liabilities
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240,000
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640,000
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Stockholders’ Equity
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840,000
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1,080,000
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Net Cash Flows from Operating Activities
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160,000
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102,000
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Interest and Principal Payments
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24,000
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16,000
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Net Sales
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950,000
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900,000
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Net Income
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180,000
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144,000
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Interest Expense
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17,000
|
23,000
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Income Taxes
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32,000
|
29,000
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Dividends Paid to Common Stockholders
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30,000
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60,000
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Refer to Rio Imports. The net profit margin percentage for 2015is:
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2)
|
Rio Imports
Information from the financial statements are provided below:
|
|
2015
|
2014
|
|
Current Liabilities
|
$460,000
|
$320,000
|
|
Long-Term Liabilities
|
240,000
|
640,000
|
|
Stockholders’ Equity
|
840,000
|
1,080,000
|
|
Net Cash Flows from Operating Activities
|
160,000
|
102,000
|
|
Interest and Principal Payments
|
24,000
|
16,000
|
|
Net Sales
|
950,000
|
900,000
|
|
Net Income
|
180,000
|
144,000
|
|
Interest Expense
|
17,000
|
23,000
|
|
Income Taxes
|
32,000
|
29,000
|
|
Dividends Paid to Common Stockholders
|
30,000
|
60,000
|
|
|
|
Refer to Rio Imports. The net profit margin percentage for 2015is:
3)
A company reported the following amounts in its financialstatements:
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2015
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2014
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Average inventory
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$100,000
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$60,000
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Cost of goods sold
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2,000,000
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1,500,000
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From 2014 to 2015, the company’s efficiency in managing inventorywas:
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a. Improving, because the inventory turnover ratio isdecreasing.
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b. Declining, because the inventory turnover ratio isdecreasing.
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c. Improving, because the inventory turnover ratio isincreasing.
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d. Declining, because the inventory turnover ratio isincreasing.
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4)
When a financial analyst determines the percentage change inoperating income for the five-year period from 2011 to 2015, she isperforming a:
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c. Cross-sectional analysis.
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d. Profitability analysis.
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