FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 4: Profitability Analysis

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 31

Short Answer

Review LaterAdd Note

Review Later

________________________________________ is the level of earnings and the growth in the levels of earnings expected to persist in the future.

Correct Answer

verified

Sustainabl...

View Answer

Show Answer

Question 32

Multiple Choice

Review LaterAdd Note

Review Later

Adjustments for dilutive securities and the adjustment to weighted average number of shares outstanding presumes that the dilutive securities are converted to common shares:

A) as of the beginning of the year.
B) as of the end of the year.
C) as of the middle of the year.
D) as of the point in time where the maximum number of shares are outstanding.

Correct Answer

verified

Show Answer

Question 33

Short Answer

Review LaterAdd Note

When calculating the return on fixed assets sales is divided by _________________

Firms and industries characterized by heavy fixed capacity costs and lengthy periods required to add new capacity operate under a(n)___________________________________.

When calculating Basic earnings per share net income is adjusted by____________

Orca Industries Below are the two most recent balance sheets and most recent income statement for Orca Industries.The company has an effective tax rate of 35%. Income Statement For the year ended December 31,2011 -Refer to the information for Orca Industries.The return on assets for Orca Industries is:

Which of the following industries would you expect to have,on average,high asset turnover and low profit margin?

Which factor does not explain differences or changes in ROA?

Return on assets will likely differ across firms and across time.Three elements of risk that will help explain these differences are ________________________________________,cyclicality of sales and stage and length of product life cycle.

EPS is an ambiguous measure of profitability because it reflects operating performance in the numerator and ________________________________________ in the denominator.

Common-size analysis requires the analyst to be aware that percentages can change because of all of the following except:

The rationale for adding back the _______________________________________________________ relates to attaining consistency in the numerator and denominator of ROA.

Accounts receivable turnover is calculated by dividing ________________________________________ by average net accounts receivable.

Economic theory suggests that higher levels of ____________________ in any activity should lead to higher levels of ___________________________________.

Extreme Sports Company and All Sports Corporation Below is financial information for two sporting goods retailers.Extreme Sports Company operates a retail business and franchising business.At the end 2011,Extreme Sports had 263 Company-owned and 120 franchise-operated retail stores.Extreme's stores are located in suburban,strip mall and regional mall locations,the company operates in 32 states.All Sports Corporation sells sporting goods and related products at over 2,500 Company-operated retail stores. Selected Data for All Sports and Extreme Sports (amounts in millions) -Refer to the information for Extreme Sports Company and All Sports Corporation. Compute the Asset Turnover for All Sports.

The ___________________________________ of interest expense on net income equals one minus the marginal tax rate times interest expense.

Ramos Company Ramos Company included the following information in its annual report: -Refer to the information for Ramos Company.In a percentage change income statement over the period of 2009 to 2011,what is the change in net income?

Return on assets can be a misleading ratio when analyzing technology firms because two important assets,______________________________ and ______________________________ do not appear on their balance sheets

Orca Industries Below are the two most recent balance sheets and most recent income statement for Orca Industries.The company has an effective tax rate of 35%. Income Statement For the year ended December 31,2011 -Refer to the information for Orca Industries.Orca's basic earnings per share is:

When an analyst uses measures of past profitability to forecast the firm's future profitability the expectation is that those revenues,gains,expenses and losses will ____________________.