Exam 9: Managerial Accounting

The current ratio is a measure of all the ratios calculated for the current year.

Lupton Inc.disposes of an unprofitable segment of its business.The operation of the segment suffered a $200000 loss in the year of disposal.The loss on disposal of the segment was $100000.If the tax rate is 30% and income before income taxes was $1600000

The following information pertains to Blue Flower 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 \ 5,000 Accounts receivable (net) 30,000 Inventory 25,000 Property, plant and equipment 210,000 Total Assets \ 310,000 Liabilities and Stockholders' Equity Current liabilities \ 60,000 Long-term liabilities 95,000 Stockholders' equity-common 155,000 Total Liabilities and Stockholders' Equity \ 310,000 Income Statement Sales revenue \ 116,000 Grost of goods sold 66,000 gross ,argin 50,000 Operating expenses 30,000 Net income \ 20,000 Number of shares of common stock 6,000 Market price of common stock \ 20 Dividends per share on common stock 50 Cash provided by operations \ 35,000 What is the price-earnings ratio for this company?

A supplier to a company would be most interested in the

The inventory turnover is calculated by dividing

All of the following statements are true regarding comprehensive income except

A successful grocery store would probably have

A company has an accounts receivable turnover of 10.The average net accounts receivable during the period are $900000.What is the amount of net credit sales for the period?

In horizontal analysis each item is expressed as a percentage of the

The ratios that are used to determine a company's short-term debt-paying ability are

Cochran Corporation Inc.has the following income statement (in millions): COCHRAN CORPORATION, INC. Income Statement For the Year Ended December 31, 2021 Net Sales \ 240 Cost of Goods Sold 150 Gross Profit 90 Operating Expenses 65 Net Income \ 25 Using vertical analysis what percentage is assigned to net income?

The following information pertains to The Unique Boutique 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 \ 4,000 Accounts receivable (net) 25,000 Inventory 20,000 Property, plant and equipment 210,000 Total Assets \ 295,000 Liabilities and Stockholders' Equity Current liabilities \ 60,000 Long-term liabilities 85,000 Stockholders' equity-common 150,000 Total Liabilities and Stockholders' Equity \ 295,000 Income Statement \ 85,000 Coles revenue of goods sold 45,000 Gross margin 40,000 Operating expenses 20,000 Net income \ 20,000 Number of shares of common stock 6,000 Market price of common stock \ 20 Dividends per share on common stock 0.90 Cash provided by operations \ 30,000 What is the profit margin for this company?

The current ratio is one of the most utilized measures of profitability.

Intracompany comparisons of the same financial statement items are often useful to detect changes in financial relationships and significant trends.

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

On January 1 2021 Tri-State Industries had cash and common stock of $180000.At that date the company had no other asset liability or equity balances.On January 2 2021 the company purchased $160000 of equity securities for cash that were classified as available-for-sale.It received cash dividends of $12000 during the year on these securities.In addition it had an unrealized holding gain on these securities of $32000 net of tax.Based on this information what is the amount of comprehensive income in 2021?

The following information pertains to Blue Flower 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 \ 5,000 Accounts receivable (net) 30,000 Inventory 25,000 Property, plant and equipment 210,000 Total Assets \ 310,000 Liabilities and Stockholders' Equity Current liabilities \ 60,000 Long-term liabilities 95,000 Stockholders' equity-common 155,000 Total Liabilities and Stockholders' Equity \ 310,000 Income Statement Sales revenue \ 116,000 Grost of goods sold 66,000 gross ,argin 50,000 Operating expenses 30,000 Net income \ 20,000 Number of shares of common stock 6,000 Market price of common stock \ 20 Dividends per share on common stock 50 Cash provided by operations \ 35,000 What is the current ratio for this company?

The following information is available for Patterson Company: 2021 2020 Accounts receivable \ 360,000 \ 340,000 Inventory 280,000 320,000 Net credit sales 3,000,000 1,400,000 Cost of goods sold 1,800,000 840,000 Net income 300,000 170,000 The inventory turnover for 2021 is

The asset turnover measures

The use of alternative accounting methods