Accounting Analytics complete course is currently being offered by University of Pennsylvania through Coursera platform and is Course 4 of 5 in the Business Analytics Specialization.
About this Course
Accounting Analytics explores how financial statement data and non-financial metrics can be linked to financial performance. In this course, taught by Wharton’s acclaimed accounting professors, you’ll learn how data is used to assess what drives financial performance and to forecast future financial scenarios.
Also Check: How to Apply for Coursera Financial Aid
Q1. Which of the following ratios use de-levered net income?
(check all that apply)
- Return
on Sales
- Return
on Equity
- Financial
Leverage
- Asset
Turnover
- Return
on Assets
Q2. Which of the following companies has achieved its level of
Return on Equity primarily through a high reliance on debt financing?
|
Company |
Return on Equity |
Return on Assets |
Financial Leverage |
Return on Sales |
Asset Turnover |
|
Dog Nation |
0.177 |
0.060 |
3.740 |
0.046 |
1.304 |
|
Dog Shoe Warehouse |
0.178 |
0.119 |
1.501 |
0.065 |
1.828 |
|
Hound Smart |
0.177 |
0.112 |
1.762 |
0.038 |
2.930 |
|
Paw Locker |
0.177 |
0.126 |
1.430 |
0.065 |
1.927 |
|
Pooch Mart |
0.177 |
0.111 |
1.639 |
0.057 |
1.938 |
- Hound
Smart
- Pooch
Mart
- Dog
Nation
- Dog
Shoe Warehouse
- Paw
Locker
Q3. Paw Locker has the highest Return on Assets in its
comparison group. Which of the following could be a secret to its success?
(check all that apply) (Hint: look carefully at the definition of ROA to find
only the items that will affect the ratio)
|
Company |
Return on Equity |
Return on Assets |
Financial Leverage |
Return on Sales |
Asset Turnover |
|
Dog Nation |
0.177 |
0.060 |
3.740 |
0.026 |
2.338 |
|
Dog Shoe Warehouse |
0.178 |
0.119 |
1.501 |
0.065 |
1.828 |
|
Hound Smart |
0.177 |
0.112 |
1.762 |
0.038 |
2.930 |
|
Paw Locker |
0.177 |
0.126 |
1.430 |
0.065 |
1.927 |
|
Pooch Mart |
0.177 |
0.111 |
1.639 |
0.057 |
1.938 |
- Uses
more equity financing than Hound Smart
- Has
lower compensation expense than Pooch Mart
- Uses
less debt financing than Dog Nation
- Has
lower investment in PP&E than Dog Shoe Warehouse
- Has
lower manufacturing costs than Pooch Mart
Q4. Which of the following companies has the lowest Return
on Assets?
|
Return on sales |
Asset turnover |
|
|
Advanced Puppy |
0.066 |
1.501 |
|
Dog Shoe Warehouse |
0.065 |
1.828 |
|
Dogtail Holdings |
0.066 |
1.082 |
|
Lassie Corp |
0.065 |
1.742 |
|
Paw Locker |
0.065 |
1.927 |
- Advanced
Puppy
- Lassie
Corp
- Dogtail
Holdings
- Paw
Locker
- Dog
Shoe Warehouse
Q5. Dogwell decides to pay its suppliers more quickly to
take advantage of discounts and thus acquire its raw materials for a lower
price. Dogwell makes no other changes (e.g., it buys the same volume of raw
material). Which of the following ratios would be affected by this decision?
(check all that apply)
- SG&A-to-sales
- Days
payable
- Days
receivable
- Gross
margin
- Effective
tax rate
Q6. Which of the following companies has the highest
Effective Tax Rate? You can assume they all had similar levels of interest expense
and non-operating gains and losses. (Hint: do not try to calculate the
effective tax rate; just focus on the profitability ratios that combine to
yield Return on Sales)
|
Company |
Return on Sales |
Gross Margin |
SG&A Expense to Sales |
Operating Margin |
|
Advanced Puppy |
0.066 |
0.530 |
0.393 |
0.106 |
|
Dog Shoe Warehouse |
0.065 |
0.347 |
0.212 |
0.109 |
|
Dogtail Holdings |
0.066 |
0.343 |
0.215 |
0.117 |
|
Lassie Corp |
0.065 |
0.384 |
0.259 |
0.101 |
|
Paw Locker |
0.065 |
0.329 |
0.209 |
0.101 |
- Lassie
Corp
- Dog
Shoe Warehouse
- Paw
Locker
- Dogtail
Holdings
- Advanced
Puppy
Q7. Which of the following companies has the highest Net
Trade Cycle?
|
Company |
Asset Turnover |
Days Receivable |
Days Inventory |
Days Payable |
|
BowWow Center |
1.445 |
7.811 |
65.486 |
10.494 |
|
Dogstrom |
1.465 |
62.526 |
65.359 |
48.768 |
|
Mutt Max |
1.440 |
12.237 |
206.248 |
8.208 |
|
Rex Retail |
1.443 |
3.385 |
111.218 |
48.291 |
|
Trans Pup |
1.459 |
4.254 |
221.326 |
125.969 |
- MuttMax
- Rex
Retail
- BowWow
Center
- Dogstrom
- Trans
Pup
Q8. Which company has the strongest short-term liquidity
position?
|
Current Ratio |
Quick Ratio |
Debt-to-Equity |
Long Term Debt-to-Equity |
|
|
Bow-Wow Stores |
1.6988 |
0.082 |
13.7750 |
8.8690 |
|
Destination Kennel |
2.1415 |
0.2119 |
0.5256 |
0.0000 |
|
Dog Orange Group |
1.2649 |
0.2948 |
3.1246 |
2.6663 |
|
Ren Inc |
2.3944 |
0.4173 |
0.5006 |
0.0342 |
|
Spartan Dog |
1.0683 |
0.3476 |
1.3526 |
0.4588 |
- Spartan
Dog
- Bow-Wow
Stores
- Destination
Kennel
- Ren
Inc.
- Dog
Orange Group
Q9. Which of the following is needed to produce pro forma
financial statements? (check all that apply)
- Sales
forecasts
- Common
size income statement
- Common
size cash flow statement
- Twenty
years of historical data
- Common
size balance sheet
Q10. McDognals has sales of $100 million this year and a
gross margin of 30%. Next year, sales are forecasted to grow 10% and the gross
margin is forecasted to remain at 30%. What is McDognals’ forecasted Cost of
Goods Sold for next year?
- $7
million
- $77
million
- $70
million
- $33
million
- $30
million
- $3 million
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