SECTION A-PRINCIPLES AND TERMINOLOGY-STATEMENT ANALYSIS-60% INSTRUCTIONS: Complete each of the following statements by writing the appropriate words or amounts in the Answers column. Answers For Scoring 0. The percent of current assets to total assets is an example of (type of analysis)...... vertical analysis 0. 1. The net income was $27 per common share for Year A. At the beginning of Year B, the number of shares outstanding was increased because of a 3-for-1 stock split. The earnings per share for Year A, adjusted to place them on a comparable basis with Year B, are 1. ---2-3.- A company with working capital of $500,000 and a current ratio of 2:1 pays a $100,000 short-term llability. 2. The amount of working capital Immediately after the payment is.... 2. 3. The current ratio immediately after the payment is ...... 4. If the acld-test ratio is 0.9:1, the receipt of cash from the sale of marketable securities at their book value will cause the ratio to (increase, decrease, not be affected) ..... 5-6. Three types of retall businesses are being compared: (a) jewelry store, (b) book store, and (c) grocery supermarket. 5. The type with the highest inventory turnover is most likely to be..... 6. The type with the lowest rate of gross profit is most likely to be ... 6. 7. A financial statement in which all items are in relative terms is called a 7. 8. The ability of a business to pay its debts as they come due is referred to as the factor of ...... 9. The sum of cash, receivables, and marketable securities is sometimes called........ 9. 10. The tendency of the rate eamed on stockholders' equity to vary disproportionately from the rate earned on total assets is sometimes referred to as ... 10. 11. The ratio of the sum of cash, receivables, and marketable securities to current liabilities is called...... 11. 12. Working capital is the excess of current assets over... 12. 13. The current ratio is computed by dividirig current assets by.. 13. 14-15. Three types of enterprises are being compared: (a) grocery supermarket, (b) department store, and (c) telephone company. 14. The type most likely to have the highest ratio of plant assets to total assets is. 14. 15. The type most likely to have the lowest ratio of stockholders' equity to liabilities is 15. 5. CO