Exam 9: Managerial Accounting

Return on common stockholders' equity is most closely related to

Improper recognition of income is not one of the factors affecting the quality of earnings.

A company with $60000 in current assets and $35000 in current liabilities pays a $1000 current liability.As a result of this transaction the current ratio and working capital will

The following amounts were taken from the financial statements of Ando Company: 2021 2020 Total assets \ 800,000 \ 1,000,000 Net sales 720,000 650,000 Gross profit 352,000 320,000 Net income 108,000 117,000 Weighted average number of common shares outstanding 90,000 90,000 Market price of common stock \ 42 \ 39 The return on assets for 2021 is

An income statement would not include

Akers Corporation reported net income $36000; net sales $480000; and average assets $800000 for 2021.What is the 2021 profit margin?

One objective of the income statement is to separate the results of continuing operations from those of discontinued operations.

Beta Corporation had net income of $325000 and paid dividends to common stockholders of $39000 in 2021.The weighted average number of shares outstanding in 2021 was 50000 shares.Beta Corporation's common stock is selling for $52 per share on the New York Stock Exchange.Beta Corporation's price-earnings ratio is

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 accounts receivable turnover for this company?

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

Short-term creditors are usually most interested in assessing

Dandy Candy Company sold its licorice division resulting in a loss of $80000.Assuming a tax rate of 25% the loss on this disposal will be reported on the income statement at what amount?

The return on assets will be greater than the rate of return on common stockholders' equity if the company has been successful in trading on the equity at a gain.

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 accounts receivable turnover for this company?

Which of these is not a liquidity ratio?

BVI Corporation had net income of $1600000 and paid dividends to common stockholders of $320000 in 2021.The weighted average number of shares outstanding in 2021 was 500000 shares.BVI Corporation's common stock is selling for $50 per share on the NASDAQ.BVI Corporation's payout ratio for 2021 is

The following amounts were taken from the financial statements of Ando Company: 2021 2020 Total assets \ 800,000 \ 1,000,000 Net sales 720,000 650,000 Gross profit 352,000 320,000 Net income 108,000 117,000 Weighted average number of common shares outstanding 90,000 90,000 Market price of common stock \ 42 \ 39 The profit margin ratio for 2021 is

A change in accounting principle occurs when the principle used by a company in the current year is different from the one used by its competitors in the current year.

Vertical analysis is also known as

Free cash flow