1. A stockholder is interested in the ability of a firm to (Points: 2)
2. Horizontal analysis is also called (Points: 2)
3. Vertical analysis is also known as (Points: 2)
4. Assume the following cost of goods sold data for a company:
2009 $1,500,000
2008 1,200,000
2007 900,000
If 2007 is the base year, what is the percentage increase in cost of goods sold from 2007 to 2009? (Points: 2)
5. Walker Clothing Store had a balance in the Accounts Receivable account of $780,000 at the beginning of the year and a balance of $820,000 at the end of the year. Net credit sales during the year amounted to $8,000,000. The average collection period of the receivables in terms of days was (Points: 2)
6. Waters Department Store had net credit sales of $12,000,000 and cost of goods sold of $9,000,000 for the year. The average inventory for the year amounted to $2,000,000.
The average number of days in inventory during the year was (Points: 2)
7. Which of the following is not a profitability ratio? (Points: 2)
8. Times interest earned is also called the (Points: 2)
9. The ratio that uses weighted average common shares outstanding in the denominator is the (Points: 2)
10. Each of the following is an extraordinary item except the (Points: 2)
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