Exam 9: Managerial Accounting

LKN Company had net credit sales of $5005000 and cost of goods sold of $3500000 for the year.The Accounts Receivable balances at the beginning and end of the year were $600000 and $700000 respectively.The accounts receivable turnover was

Tito Corporation had net income of $2000000 and paid dividends to common stockholders of $300000 in 2021.The weighted average number of shares outstanding in 2021 was 400000 shares.Tito Corporation's common stock is selling for $50 per share on the NASDAQ.Tito Corporation's price-earnings ratio is

Using vertical analysis of the income statement a company's net income as a percentage of net sales is 15%; therefore the cost of goods sold as a percentage of sales must be 85%.

The following information is available for Patterson Company: 2021 2020 Accounts receivable 360,000 \ 340,000 Inventory 280,000 320,000 Net credit sales 3,150,000 2,600,000 Cost of goods sold 1,800,000 840,000 Net income 300,000 170,000 The accounts receivable turnover for 2021 is

Which of the following would be considered an "Other comprehensive income" item?

Hickory Hills Pro Shop had a balance in the Accounts Receivable account of $800000 at the beginning of the year and a balance of $900000 at the end of the year.Net credit sales during the year amounted to $8040000.The average collection period of the receivables in terms of days was

When preparing an income statement which of the following is the proper order for income statement components?

A common measure of liquidity is

Inventory turnover is a measure of liquidity that focuses on efficient use of inventory.

BVI Corporation had net income of $1600000 and paid dividends to common stockholders of $400000 in 2021.The weighted average number of shares outstanding in 2021 was 500000 shares.BVI Corporation's common stock is selling for $40 per share on the NASDAQ.BVI Corporation's price-earnings ratio is

Which one of the following is not a tool in financial statement analysis?

If equal amounts are added to the numerator and the denominator of the current ratio and the ratio is over one the ratio will always

Which one of the following is not a characteristic generally evaluated in ratio analysis?

In analyzing financial statements horizontal analysis is a

If Year 1 equals $700 Year 2 equals $840 and Year 3 equals $630 the percentage to be assigned for Year 1 in a trend analysis assuming that Year 1 is the base year is

The disposal of a significant component of a business is called

When a change in depreciation method occurs

Horizontal analysis is a technique for evaluating a financial statement item in the current year with other items in the current year.

The current assets of Orangette Company are $292500.The current liabilities are $130000.The current ratio expressed as a proportion is

Stockholders are most interested in evaluating