The Following Is a Summary of Information Presented on the Financial

question 50

Multiple Choice

The following is a summary of information presented on the financial statements of The Cake Company on December 31, 2014. What would a horizontal analysis report with respect to current assets?

• A)An inventory turnover of 8 times
• B)A 30% increase in current assets
• C)A current ratio of .87
• D)Current assets that are 33.33% of total assets

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Definitions:

Dividend Yield

A metric indicating the proportion of a company's annual dividends in relation to its share price.

Par Preferred Stock

Preferred stock with a nominal value assigned in the corporate charter, which determines the issue price and face value for dividend calculations.

Par Common Stock

The nominal or face value assigned to a share of common stock, as stated in the corporate charter.

Market Value

The immediate market value at which one can buy or sell an asset or service.