Exam 9: Managerial Accounting

Which one of the following would not be considered a liquidity ratio?

All of the following may be indicators of channel stuffing except

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 return on assets for this company?

Using borrowed money to increase the rate of return on common stockholders' equity is called "trading on the equity."

Comparative balance sheets

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 accounts receivable turnover was

The profit margin is calculated by dividing

Horizontal vertical and circular analyses are the basic tools of financial statement analysis.

Horizontal analysis is also known as

Trading on the equity (leverage) refers to the

From a creditor's point of view the higher the debt to assets ratio the lower the risk that the company may be unable to pay its obligations.

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 cost of goods sold?

Winsor Clothing Store had a balance in the Accounts Receivable account of $760000 at the beginning of the year and a balance of $840000 at the end of the year.Net credit sales during the year amounted to $7200000.The average collection period of the accounts receivable in terms of days was

If a company has a discontinued operation gain of $30000 and a 32% tax rate what is the effect on net income?

Vertical analysis is a technique for evaluating a series of financial statement data over a period of time to determine the increase (decrease) that has taken place.

Comparisons of company data with industry averages provide information about a company's relative position within the industry.

The loss on disposal of a significant component of a business is disclosed in the statement of retained earnings.

The order of presentation of items that may appear on the statement of comprehensive income is

The following amounts were taken from the financial statements of R.Dodd Company: 2021 2020 Current liabilities \ 1,280,000 \ 1,220,000 Long-term liabilities 1,800,000 1,600,000 Interest expense 100,000 50,000 Income tax expense 50,000 30,000 Net income 300,000 170,000 Net cash provided by operating activity 325,000 270,000 The times interest earned for 2021 is

Liquidity ratios measure the ability of the company to survive over a long period of time.