COMPLETION STATEMENTS 223. In analyzing and interpreting financial statement information three major characteristics are generally evaluated: (1)____________ (2)_____________ and (3)_____________. 224. ______________ analysis also called trend analysis is a technique for evaluating a percentage increase or decrease for a financial statement item over a period of time. 225. Expressing each item within a financial statement as a percentage of a base amount is called ______________ analysis. 226. The ratios used in evaluating a company’s liquidity and short-term debt paying ability that complement each other are the ______________ ratio and the ______________ ratio. 227. The accounts receivable turnover is calculated by dividing _________________ by average ___________________. 228. If inventory turnover is 8 times and the average inventory was $400 000 the cost of goods sold during the year was $______________ and the days in inventory was ______________ days. 229. Stanton Corporation had net income for the year of $200 000 and a profit margin of 20%. If total average assets were $400 000 the asset turnover ratio was ____________ times. 230. The ______________ ratio measures the percentage of earnings distributed in the form of cash dividends. 231. The lower the ______________ to ______________ ratio the more equity “buffer” there is available to the creditors. 232. Times interest earned is calculated by dividing _____________ before _______________ and ________________ by interest expense. 233. Discontinued operations refers to the disposal of a ______________ of a business. 234. The two criteria necessary for an item to be classified as an extraordinary item are that the transaction or event must be (1) __________________ and (2) ___________________. 235. A change in inventory methods during the year would be classified as a change in __________________.
