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For Garrison Corporation,the working capital at the end of the current year is $10,000 more than the working capital at the end of the preceding year,reported as follows:​​ For Garrison Corporation,the working capital at the end of the current year is $10,000 more than the working capital at the end of the preceding year,reported as follows:​​ Has the current position of Garrison Corporation improved? Explain. Has the current position of Garrison Corporation improved? Explain.

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The amount of working capital and the ch...

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Revenue and expense data for Bluestem Company are as follows:​ Revenue and expense data for Bluestem Company are as follows:​ ​ Round percentages to one decimal place. ​ Revenue and expense data for Bluestem Company are as follows:​ ​ Round percentages to one decimal place. Round percentages to one decimal place.

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An analysis in which all the components of an income statement are expressed as a percentage of sales is a


A) vertical analysis
B) horizontal analysis
C) liquidity analysis
D) solvency analysis

E) All of the above
F) B) and C)

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The following items were taken from the financial statements of Tilden,Inc.,over a three-year period:​​ The following items were taken from the financial statements of Tilden,Inc.,over a three-year period:​​ Compute the following for each of the items listed.​​ Round percentages to one decimal place. Compute the following for each of the items listed.​​ The following items were taken from the financial statements of Tilden,Inc.,over a three-year period:​​ Compute the following for each of the items listed.​​ Round percentages to one decimal place. Round percentages to one decimal place.

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Match each ratio that follows to its use (items a-h) . Items may be used more than once. -Quick ratio


A) Assess the profitability of the assets
B) Assess how effectively assets are used
C) Indicate the ability to pay current liabilities
D) Indicate how much of the company is financed by debt and equity
E) Indicate instant debt-paying ability
F) Assess the profitability of the investment by common stockholders
G) Indicate future earnings prospects
H) Indicate the extent to which earnings are being distributed to common stockholders

I) C) and E)
J) A) and B)

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Income statement information for Lucy Company is provided below.​ Income statement information for Lucy Company is provided below.​ Prepare a vertical analysis of the income statement for Lucy Company. Prepare a vertical analysis of the income statement for Lucy Company.

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Why would you or why wouldn't you compare an organization like Ford Motor Company to the local car dealer "Johnson City Ford/Lincoln/Mercury" using vertical and horizontal analysis?

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Ford Motor Company is an automobile manu...

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The excess of current assets over current liabilities is referred to as working capital.

A) True
B) False

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Match each definition that follows with the term (a-h) it defines. -A company's ability to make interest payments and repay debt at maturity


A) Solvency
B) Leverage
C) Times interest earned
D) Horizontal analysis
E) Vertical analysis
F) Common-sized financial statements
G) Current position analysis
H) Profitability analysis

I) A) and F)
J) B) and C)

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Match each ratio that follows to its use (items a-h) . Items may be used more than once. -Price-earnings (P/E) ratio


A) Assess the profitability of the assets
B) Assess how effectively assets are used
C) Indicate the ability to pay current liabilities
D) Indicate how much of the company is financed by debt and equity
E) Indicate instant debt-paying ability
F) Assess the profitability of the investment by common stockholders
G) Indicate future earnings prospects
H) Indicate the extent to which earnings are being distributed to common stockholders

I) A) and D)
J) A) and F)

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The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Use this information to answer the questions that follow. ​ Assets The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Use this information to answer the questions that follow. ​ Assets Liabilities and Stockholders' Equity Income Statement -Using the data provided for Diane Company,what is the dividend yield? A) 7.5% B) 0.75% C) 13.3% D) 1.3% Liabilities and Stockholders' Equity The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Use this information to answer the questions that follow. ​ Assets Liabilities and Stockholders' Equity Income Statement -Using the data provided for Diane Company,what is the dividend yield? A) 7.5% B) 0.75% C) 13.3% D) 1.3% Income Statement The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Use this information to answer the questions that follow. ​ Assets Liabilities and Stockholders' Equity Income Statement -Using the data provided for Diane Company,what is the dividend yield? A) 7.5% B) 0.75% C) 13.3% D) 1.3% The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Use this information to answer the questions that follow. ​ Assets Liabilities and Stockholders' Equity Income Statement -Using the data provided for Diane Company,what is the dividend yield? A) 7.5% B) 0.75% C) 13.3% D) 1.3% -Using the data provided for Diane Company,what is the dividend yield?


A) 7.5%
B) 0.75%
C) 13.3%
D) 1.3%

E) B) and C)
F) C) and D)

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A company reports the following:​ A company reports the following:​ Determine the (a)inventory turnover and (b)number of days' sales in inventory. Round your answers to one decimal place. Determine the (a)inventory turnover and (b)number of days' sales in inventory. Round your answers to one decimal place.

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In horizontal analysis,the current year is the base year.

A) True
B) False

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The ratio of fixed assets to long-term liabilities provides a measure of a firm's ability to pay dividends.

A) True
B) False

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The following items are reported on a company's balance sheet:​ The following items are reported on a company's balance sheet:​ Determine the (a)current ratio and (b)quick ratio.Round your answers to one decimal place. Determine the (a)current ratio and (b)quick ratio.Round your answers to one decimal place.

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Condensed data taken from the ledger of St.Louis Company at December 31,for the current and preceding years,are as follows:​ Condensed data taken from the ledger of St.Louis Company at December 31,for the current and preceding years,are as follows:​ Prepare a comparative balance sheet,with horizontal analysis,for December 31,Year 2 and Year 1. (Round percents to one decimal place.) Prepare a comparative balance sheet,with horizontal analysis,for December 31,Year 2 and Year 1. (Round percents to one decimal place.)

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A change from one acceptable accounting method to another is reported


A) on the statement of retained earnings, as a correction to the beginning balance
B) on the income statement, below income from continuing operations
C) on the income statement, above income tax expense
D) through a retroactive restatement of prior period earnings

E) All of the above
F) B) and D)

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A clean audit opinion is not the same as an unmodified opinion.

A) True
B) False

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Match each definition that follows with the term (a-h) it defines. -A percentage analysis of increases and decreases in related items on comparative financial statements


A) Solvency
B) Leverage
C) Times interest earned
D) Horizontal analysis
E) Vertical analysis
F) Common-sized financial statements
G) Current position analysis
H) Profitability analysis

I) B) and H)
J) None of the above

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Use the information below for Privett Company to answer the questions that follow. ​ Use the information below for Privett Company to answer the questions that follow. ​ -Based on the data for Privett Company,what is the amount of quick assets? A) $168,000 B) $96,000 C) $60,000 D) $61,000 -Based on the data for Privett Company,what is the amount of quick assets?


A) $168,000
B) $96,000
C) $60,000
D) $61,000

E) B) and C)
F) All of the above

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