Exam 9: Managerial Accounting

Savory Thymes Inc.had net credit sales of $9000000 and cost of goods sold of $5250000 for the year.The average inventory for the year amounted to $1250000.The inventory turnover for the year is

In vertical analysis the base amount for salaries and wages expense is generally

In a common size income statement the 100% figure is

Ratios are used as tools in financial analysis

Comparisons of data within a company are an example of the following comparative basis

In a common size balance sheet total assets are represented by 100%.

Bill's Dollar 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 $6400000.The accounts receivable turnover was

In a common size income statement net sales are represented by 100%.

In ratio analysis the ratios are never expressed as a

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 profit margin for this company?

Assume the following sales data for a company: 2022 \ 960,000 2021 750,000 2020 600,000 If 2020 is the base year what is the percentage increase in sales from 2020 to 2021?

Alternative accounting methods affect the quality of earnings.

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 return on assets for this company?

Which of the following is the best definition of sustainable income?

In performing a vertical analysis the base for cost of goods sold is

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 current ratio would be of most interest to

If the average collection period is 73 days what is the accounts receivable turnover?

Declining profitability and liquidity ratios are indications that a company may not survive.

Salamagundi Inc.has the following Income Statement (in millions): SALAMAGUNDI, INC. Income Statement For the Year Ended December 31, 2021 Net Sales \ 160 Cost of Goods Sold 100 Gross Profit 60 Operating Expenses 40 Net Income \ 20 Using vertical analysis what percentage is assigned to gross profit?