Exam 14: Managerial Accounting

Short-term creditors are usually most interested in evaluating

The acid-test (quick) ratio

Quasar Corporation had net income of $300,000 and paid dividends to common stockholders of $40,000 in 2017.The weighted average number of shares outstanding in 2017 was 60,000 shares.Quasar Corporation's common stock is selling for $35 per share on the New York Stock Exchange. Quasar Corporation's price-earnings ratio is

Beacon, Inc.disposes of an unprofitable segment of its business.The operation of the segment suffered a $350,000 loss in the year of disposal.The loss on disposal of the segment was $150,000.If the tax rate is 30%, and income before income taxes was $2,300,000,

Under which of the following cases may a percentage change be computed?

In horizontal analysis, if an item has a negative amount in the base year, and a positive amount in the following year, no percentage change for that item can be computed.

The following information pertains to Ortiz Company.Assume that all balance sheet amounts represent both average and ending balance figures.Assume that all sales were on credit. Assets Cash and short-term investments \ 45,000 Accounts receivable (net) 25,000 Inventory 12,000 Property, plant and equipment 210,000 Total Assets \2 92,000 Liabilities and Stockholders' Equity Current liabilities \ 50,000 Long-term liabilities 90,000 Stockholders' equity-common 152,000 Total Liabilities and Stockholders' Equity \2 92,000 Income Statement Sales \ 120,000 Cost of goods sold 66,000 Gross profit \5 4,000 Operating expenses 30,000 Net income \2 4,000 Number of shares of common stock 6,000 Market price of common stock \ 20 Dividends per share .50 What is the inventory turnover for Ortiz?

In performing a vertical analysis, the base for sales revenues on the income statement is

Vertical analysis is also known as

Each of the following is a liquidity ratio except the

The following amounts were taken from the financial statements of Leaf Company: 2017 2016 Total assets \ 900,000 \ 1,000,000 Net sales 840,000 650,000 Gross profit 352,000 320,000 Net income 138,600 117,000 Weighted average number of common shares outstanding 90,000 90,000 Market price of common stock \ 35 \ 39 The profit margin for 2017 is

The following information pertains to Rural Company.Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Assets Cash and short-term investments \ 40,000 Accounts receivable (net) 30,000 Inventory 25,000 Property, plant and equipment 215,000 Total Assets \3 10,000 Liabilities and Stockholders' Equity Current liabilities \ 60,000 Long-term liabilities 75,000 Stockholders' equity-common 175,000 Total Liabilities and Stockholders' Equity \3 10,000 Income Statement Sales \ 95,000 Cost of goods sold 45,000 Gross profit \5 0,000 Operating expenses 15,000 Net income \3 5,000 Number of shares of common stock 5,000 Market price of common stock \ 21 Dividends per share 1.00 What is the price-earnings ratio for Rural?

The ratio that uses weighted average common shares outstanding in the denominator is the

Assume the following sales data for a company: 2017 \ 945,000 2016 877,500 2015 675,000 If 2015 is the base year, what is the percentage increase in sales from 2015 to 2016?

Nord Company had $375,000 of current assets and $150,000 of current liabilities before borrowing $70,000 from the bank with a 3-month note payable.What effect did the borrowing transaction have on the amount of Nord Company's working capital?

Jack's by the Tracks has the following partial balance sheet: JACK'S BY THE TRACKS Balance Sheet (partial) Stockholders' Equity: Common Stock \6 ,000,000 Retained Earnings 2,000,000 Total Paid-in capital and retained earnings 8,000,000 Add: Unrealized gain on available-for-sale securities 800,000 Total Stockholders' Equity: \8 ,800,000 What effect will the unrealized gain on available-for-sale securities have on comprehensive income?

If a company has an acid-test ratio of 1.2:1, what respective effects will the borrowing of cash by short-term debt and collection of accounts receivable have on the ratio? 0000

Ale Corporation had net income of $240,000 and paid dividends to common stockholders of $40,000 in 2017.The weighted average number of shares outstanding in 2017 was 60,000 shares.Ale Corporation's common stock is selling for $60 per share on the New York Stock Exchange.Ale Corporation's payout ratio for 2017 is

Profitability ratios are frequently used as a basis for evaluating management's operating effectiveness.

Comprehensive income would not include