LO1&LO2
Consolidated financial statements present financial statement of parent and subsidiary separately.
True/false
False, parent and subsidiary are presented as a unit.
Which of the following statements are true?
A. Classified financial statement is an example of horizontal analysis.
B. Horizontal analysis is to compare a company’s financial condition and performance to a base amount.
C. Horizontal analysis calculates the absolute and percentage change in each account balance on a financial statement.
D. Dollar change is always used to compare between firms of different scales.
C
Company A presents a price earning ration of 15$ whereas its competitor in the same industry Company B has a price earning ration of 30$. Which company will investors more likely invest in?
Company A since P/E is smaller hence the company presents less risk in producing future profits.
What is the most recently released marvel movie?
Captain Marvel
Give three examples of internal users of financial statement analysis.
Managers
Officers
Internal Auditors
Which of the following measures is not suitable for a company to shorten operating cycle?
A. By increasing net sales
B. By increasing average inventory
C. By increasing COGS
D. Altering payment terms with suppliers
B. By increasing average inventory
Generally, should a company use more debt or equity to finance its assets and why?
A. Debt, as it increases financial leverage
B. Equity, as it comes with no legal obligations to pay investors, thus having low risk
C. Debt, as more stockholders leads to dilution of power in the company
D. Equity, as it is easier to obtain
B. Equity, as it comes with no legal obligations to pay investors, thus having low risk
Who is Justin Bieber's new wife?
Hailey Baldwin.
What are the three important factors that might affect a company's performance?
Macroeconomic Factors
Industry-Wide Factors
Company Specific Factors
Name 2 benefits of using common-sized statements.
- Enables comparison of companies that report in different currencies.
If Company C has a net income of 5000$ and a average total assets of 26000$. What would be it’s Return on Assets ?
5000/26000 = 0,1923 or 19,23%
How many teeth does a normal adult have?
32
Look through the example given and identify the factor that affect the firm's performance.
Boeing Stock Plunges to Staggering $28 Billion Loss. -Boeing Co (BA) headed for its ninth drop in ten days in the wake of the Ethiopian Airline crash that killed 157 people last weekend, which came less than five months after a Lion Air 737 Max crashed in Indonesia, killing everyone onboard.
Company specific factor
Barry Best recorded a net income of $120,000 this year, which took up 20% of total revenue. If this year's total revenue was a 10% increase from the base year total revenue and the base year net income took up 18% of that revenue, what is the base year net income (nearest dollar) and what is the percentage change of net income (nearest whole number)?
$98182. +22%
What are the 3 limits to financial statement analysis
1. Changing economic situation
2. Changing accounting principles
3. Sustainability
How many Avengers (current & former) and Guardians of the Galaxy appeared in Avengers: Infinity War?
16.
Iron-Man
Thor
Hulk
Captain America
Black Widow
War Machine
Spider-Man
Vision
Scarlet Witch
Falcon
Mantis
Drax
Gamora
Groot
Rocket
Star-Lord