Principles Of Accounting Ii

Answer1. Financial statement analysis: Answer E) All of these.2. The building blocks of financial statement analysis include: Answer E) All of these.3. Standards for comparisons in financial statement analysis include: Answer E) All of these.4. Horizontal analysis: Answer A) Is a method used to evaluate changes in financial data across time?5) Selected balances from a company's financial statements are shown below. Calculate the following ratios for 2012: (a) accounts receivable turnover = Net Credit Sales Average Receivables = $312,000 $25,500 = 12.23Times (b) inventory turnover = Cost of Goods Sold Average Inventory = $165,600 $22,500 = 7.36Times (c) days' sales uncollected = 365 / Accounts Receivable Turnover = 365 / 12.23 =29.84 or 30 days (d) days' sales in inventory = 365 / Inventory Turnover = 365 / 7.36 =49.59 or 50 days (e) profit margin. = Net Income * 100 Net Sales = $24,000 /$312,000 *100 = 7.69%(f) Return on total assets. = Net Income * 100 Average Assets = $24,000 /$270,000 *100 = 8.89%