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1)
Concord Limited reported the following on its income statement:
| Profit before income taxes | | $550000 |
| Income tax expense | | 147000 |
| Profit | | $403000 |
An analysis of the income statement revealed that interest expense was $44000. Concords interest coverage ratio was
2)
Dieter Incorporated has provided you with the following selected information from 2020 and 2021:
| | | 2021 | | 2020 |
| Interest expense | | $15,500 | | $10,700 |
| Income tax expense | | 18,000 | | 22,000 |
| Profit | | 68,000 | | 60,000 |
| Total assets | | 523,000 | | 497,000 |
| Total liabilities | | 285,000 | | 234,000 |
Which of the following best interprets Dieters debt to total assets ratio analysis?
| | Debt to total asset ratio has weakened compared to prior year, increasing from 47.1% to 54.5%. |
| | Debt to total asset ratio has weakened compared to prior year, decreasing from 2.1 to 1.8. |
| | Debt to total asset ratio has improved compared to prior year, increasing from 47.1% to 54.5%. |
| | Debt to total asset ratio has improved compared to prior year, decreasing from 2.1 to 1.8. |
3)
Fantastic Cleaning Products Ltd. has provided you with the following selected information from 2020 and 2021:
| | | 2021 | | 2020 |
| Sales | | $785,000 | | $740,000 |
| Sales returns and allowances | | 55,200 | | 52,000 |
| Cost of goods sold | | 358,000 | | 305,000 |
| Profit | | 86,800 | | 128,000 |
Using a vertical trend analysis with net sales as a base, which of the following most accurately depicts the information stated above?
| | Cost of goods sold as a percentage of net sales increased by 5 percentage points. |
| | Profit as a percentage of net sales increased by 6.7 percentage points. |
| | Profit as a percentage of net sales did not change significantly from 2020. |
| | Cost of goods sold as a percentage of net sales remained consistent from 2020. |
4)
Raji Upholstery Inc. reported revenue of $250,000 in 2021 and $222,500 in 2020. The horizontal percentage change from 2020 to 2021 is
5)
An intercompany comparative analysis is the process of
| | comparing an item or financial relationship within a company in the current year with one or more prior years. |
| | comparing an item or financial relationship of one company with historical data compiled by one or more competing companies. |
| | comparing an item or financial relationship of one company with the same item or relationship in one or more competing companies. |
| | comparing an item or financial relationship within a company to the internally prepared master budget in order to highlight variances. |
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