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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