The Following Information Pertains to Blue Flower Company
13- 1
Financial Analysis: The Big Picture
191. The following information pertains to Blue Flower Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.
Assets
Cash and short-term investments $ 45,000
Accounts receivable (net) 30,000
Inventory 15,000
Property, plant and equipment 210,000
Total Assets $300,000
Liabilities and Stockholders' Equity
Current liabilities $ 60,000
Long-term liabilities 90,000
Stockholders' equity—common 15,000
Total Liabilities and Stockholders' Equity $300,000
Income Statement
Sales revenue $ 121,000
Cost of goods sold 66,000
Gross margin 55,000
Operating expenses 30,000
Net income $ 25,000
Number of shares of common stock 6,000
Market price of common stock $20
Dividends per share on common stock .50
Cash provided by operations $40,000
What is the current ratio for this company?
a. 1.00
b. 1.25
c. 1.50
d. 0.67
192. The following information pertains to Blue Flower Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.
Assets
Cash and short-term investments $ 45,000
Accounts receivable (net) 30,000
Inventory 15,000
Property, plant and equipment 210,000
Total Assets $300,000
Liabilities and Stockholders' Equity
Current liabilities $ 60,000
Long-term liabilities 90,000
Stockholders' equity—common 150,000
Total Liabilities and Stockholders' Equity $300,000
Income Statement
Sales revenue $ 121,000
Cost of goods sold 66,000
Gross margin 55,000
Operating expenses 30,000
Net income $ 25,000
Number of shares of common stock 6,000
Market price of common stock $20
Dividends per share on common stock .50
Cash provided by operations $40,000
What is the accounts receivable turnover for this company?
a. 2.2 times
b. 4.4 times
c. 8.1 times
d. 4.0 times
193. The following information pertains to Blue Flower Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.
Assets
Cash and short-term investments $ 45,000
Accounts receivable (net) 30,000
Inventory 15,000
Property, plant and equipment 210,000
Total Assets $300,000
Liabilities and Stockholders' Equity
Current liabilities $ 60,000
Long-term liabilities 90,000
Stockholders' equity—common 150,000
Total Liabilities and Stockholders' Equity $300,000
193. (Cont.)
Income Statement
Sales revenue $ 121,000
Cost of goods sold 66,000
Gross margin 55,000
Operating expenses 30,000
Net income $ 25,000
Number of shares of common stock 6,000
Market price of common stock $20
Dividends per share on common stock .50
Cash provided by operations $40,000
What is the inventory turnover for this company?
a. 4.4 times
b. 8.1 times
c. 8.8 times
d. 0.23 time
194. The following information pertains to Blue Flower Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.
Assets
Cash and short-term investments $ 45,000
Accounts receivable (net) 30,000
Inventory 15,000
Property, plant and equipment 210,000
Total Assets $300,000
Liabilities and Stockholders' Equity
Current liabilities $ 60,000
Long-term liabilities 90,000
Stockholders' equity—common 150,000
Total Liabilities and Stockholders' Equity $300,000
Income Statement
Sales revenue $ 121,000
Cost of goods sold 66,000
Gross margin 55,000
Operating expenses 30,000
Net income $ 25,000
Number of shares of common stock 6,000
Market price of common stock $20
Dividends per share on common stock .50
Cash provided by operations $40,000
194. (Cont.)
What is the return on assets for this company?
a. 18.3%
b. 13.3%
c. 8.3%
d. 16.7%
195. The following information pertains to Blue Flower Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.
Assets
Cash and short-term investments $ 45,000
Accounts receivable (net) 30,000
Inventory 15,000
Property, plant and equipment 210,000
Total Assets $300,000
Liabilities and Stockholders' Equity
Current liabilities $ 60,000
Long-term liabilities 90,000
Stockholders' equity—common 150,000
Total Liabilities and Stockholders' Equity $300,000
Income Statement
Sales revenue $ 121,000
Cost of goods sold 66,000
Gross margin 55,000
Operating expenses 30,000
Net income $ 25,000
Number of shares of common stock 6,000
Market price of common stock $20
Dividends per share on common stock .50
Cash provided by operations $40,000
What is the profit margin for this company?
a. 41.3%
b. 45.5%
c. 33.1%
d. 20.7%
196. The following information pertains to Blue Flower Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.
Assets
Cash and short-term investments $ 45,000
Accounts receivable (net) 30,000
Inventory 15,000
Property, plant and equipment 210,000
Total Assets $300,000
Liabilities and Stockholders' Equity
Current liabilities $ 60,000
Long-term liabilities 90,000
Stockholders' equity—common 150,000
Total Liabilities and Stockholders' Equity $300,000
Income Statement
Sales revenue $ 121,000
Cost of goods sold 66,000
Gross margin 55,000
Operating expenses 30,000
Net income $ 25,000
Number of shares of common stock 6,000
Market price of common stock $20
Dividends per share on common stock .50
Cash provided by operations $40,000
What is the return on common stockholders' equity for this company?
a. 33.3%
b. 16.7%
c. 26.7%
d. 36.7%
197. The following information pertains to Blue Flower Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.
Assets
Cash and short-term investments $ 45,000
Accounts receivable (net) 30,000
Inventory 15,000
Property, plant and equipment 210,000
Total Assets $300,000
Liabilities and Stockholders' Equity
Current liabilities $ 60,000
Long-term liabilities 90,000
Stockholders' equity—common 150,000
Total Liabilities and Stockholders' Equity $300,000
197. (Cont.)
Income Statement
Sales revenue $ 121,000
Cost of goods sold 66,000
Gross margin 55,000
Operating expenses 30,000
Net income $ 25,000
Number of shares of common stock 6,000
Market price of common stock $20
Dividends per share on common stock .50
Cash provided by operations $40,000
What is the price earnings ratio for this company?
a. 1.9 times
b. 2.7 times
c. 3.8 times
d. 4.8 times
198. The following information pertains to Blue Flower Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.
Assets
Cash and short-term investments $ 45,000
Accounts receivable (net) 30,000
Inventory 15,000
Property, plant and equipment 210,000
Total Assets $300,000
Liabilities and Stockholders' Equity
Current liabilities $ 60,000
Long-term liabilities 90,000
Stockholders' equity—common 150,000
Total Liabilities and Stockholders' Equity $300,000
Income Statement
Sales revenue $ 121,000
Cost of goods sold 66,000
Gross margin 55,000
Operating expenses 30,000
Net income $ 25,000
Number of shares of common stock 6,000
Market price of common stock $20
Dividends per share on common stock .50
Cash provided by operations $40,000
198. (Cont.)
What is the current cash debt coverage ratio for this company?
a. 0.67 times
b. 1.5 times
c. 0.27 times
d. 0.44 times
199. The following information is available for Patterson Company:
2014 2013
Accounts receivable $ 360,000 $ 340,000
Inventory 280,000 320,000
Net credit sales 3,000,000 2,600,000
Cost of goods sold 1,500,000 840,000
Net income 300,000 170,000
The accounts receivable turnover for 2014 is
a. 8.3 times.
b. 4.3 times.
c. 8.6 times.
d. 7.6 times.
200. The following information is available for Patterson Company:
2014 2013
Accounts receivable $ 360,000 $ 340,000
Inventory 280,000 320,000
Net credit sales 3,000,000 1,400,000
Cost of goods sold 1,500,000 840,000
Net income 300,000 170,000
The inventory turnover for 2014 is
a. 5.4 times.
b. 5.0 times.
c. 2.5 times.
d. 3.0 times.
Source: https://scholaron.com/homework-answers/13-1-financial-analysis-the-big-1785282
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