Question 1

Calculate the current ratio and the acid-test ratio. Is the company healthy based on the guidelines given in the text?
-

Accepted Answer

A) Current ratio = 2.24 which is fine
Acid-test ratio = 0.25 which is very low 
B) Current ratio = 2.24 which is fine
Acid-test ratio = 8.89 which is fine 
C) Current ratio = 0.25 which is very low
Acid-test ratio = 2.24 which is fine 
D) Current ratio = 8.89 which is fine
Acid-test ratio = 0.25 which is very low 
A) Current ratio = 2.24 which is fine
Acid-test ratio = 0.25 which is very low 
B) Current ratio = 2.24 which is fine
Acid-test ratio = 8.89 which is fine 
C) Current ratio = 0.25 which is very low
Acid-test ratio = 2.24 which is fine 
D) Current ratio = 8.89 which is fine
Acid-test ratio = 0.25 which is very low

Question 2

Find (a) the gross profit, (b) the net income before taxes, and (c) the net income after taxes.
-Steel Master Sales had a cost of goods sold of $244,000, operating expenses of $157,000, returns of $16,000, taxes of $26,900, and gross sales of $538,000.

Accepted Answer

A) (a)$381,000 (b)$121,000 (c)$94,100 
B) (a)$294,000 (b)$121,000 (c)$94,100 
C) (a)$278,000 (b)$121,000 (c)$94,100 
D) (a)$365,000 (b)$121,000 (c)$94,100 
A) (a)$381,000 (b)$121,000 (c)$94,100 
B) (a)$294,000 (b)$121,000 (c)$94,100 
C) (a)$278,000 (b)$121,000 (c)$94,100 
D) (a)$365,000 (b)$121,000 (c)$94,100

Question 3

Complete the horizontal analysis for the balance sheet. Round to the nearest tenth of a percent.
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Accepted Answer

A) -55.8%, 99.8%, 4.0%, 64.1%, 19.8%, -32.4%, 13.2% 
B) -126.7%, 50.0%, 3.8%, 39.1%, 16.6%, -48.0%, 11.7% 
C) 226.7%, 50.0%, 96.2%, 60.9%, 83.4%, 148.0%, 88.3% 
D) -55.9%, 100.0%, 4.0%, 64.1%, 19.8%, -32.4%, 13.3% 
A) -55.8%, 99.8%, 4.0%, 64.1%, 19.8%, -32.4%, 13.2% 
B) -126.7%, 50.0%, 3.8%, 39.1%, 16.6%, -48.0%, 11.7% 
C) 226.7%, 50.0%, 96.2%, 60.9%, 83.4%, 148.0%, 88.3% 
D) -55.9%, 100.0%, 4.0%, 64.1%, 19.8%, -32.4%, 13.3%

Question 4

Complete the horizontal analysis for the comparative income statement. Round to the nearest tenth of a percent.
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Accepted Answer

A) -27.6%, 35.7%, -28.9%, -7.6%, -40.6%, -34.4%, -41.0% 
B) 27.6%, -35.7%, 28.9%, 7.6%, 40.6%, 34.4%, 41.0% 
C) 21.6%, -55.6%, 22.4%, 7.0%, 28.9%, 25.6%, 29.1% 
D) 13.7%, -107.1%, 14.7%, -32.3%, 18.6%, -278.1%, 17.5% 
A) -27.6%, 35.7%, -28.9%, -7.6%, -40.6%, -34.4%, -41.0% 
B) 27.6%, -35.7%, 28.9%, 7.6%, 40.6%, 34.4%, 41.0% 
C) 21.6%, -55.6%, 22.4%, 7.0%, 28.9%, 25.6%, 29.1% 
D) 13.7%, -107.1%, 14.7%, -32.3%, 18.6%, -278.1%, 17.5%

Question 5

The following chart shows some figures from an income statement. Prepare a vertical analysis by expressing each item as a percent of net sales. Round percents to the nearest tenth of a percent.
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Accepted Answer

A) 40.7%, 8.2%, 5.0%, 4.7% 
B) 40.7%, 8.3%, 12.2%, 11.6% 
C) 40.7%, 8.2%, 60.6%, 4.7% 
D) 40.7%, 20.2%, 12.2%, 11.6% 
A) 40.7%, 8.2%, 5.0%, 4.7% 
B) 40.7%, 8.3%, 12.2%, 11.6% 
C) 40.7%, 8.2%, 60.6%, 4.7% 
D) 40.7%, 20.2%, 12.2%, 11.6%

Question 6

Complete the balance sheet.
-Mullen's Hardware: mortgage $36,000; notes payable $20,000; accounts payable $18,000; long-term notes $27,000; fixed assets $92,000; inventory $65,000; accounts receivable $42,000; notes receivable
$17,000; cash $9,000; owner's equity $124,000

Accepted Answer

A) Assets: 9,000; 17,000; 42,000; 65,000; 133,000; 92,000; 225,000
Liabilities: 20,000; 18,000; 38,000; 36,000; 27,000; 63,000; 101,000
Owner's Equity: 124,000; 225,000 
B) Assets: 9,000; 17,000; 42,000; 65,000; 133,000; 92,000; 225,000
Liabilities: 27,000; 18,000; 45,000; 36,000; 20,000; 56,000; 124,000
Owner's Equity: 101,000; 225,000 
C) Assets: 9,000; 17,000; 42,000; 65,000; 133,000; 92,000; 225,000
Liabilities: 27,000; 18,000; 45,000; 36,000; 20,000; 56,000; 101,000
Owner's Equity: 124,000; 225,000 
D) Assets: 9,000; 17,000; 42,000; 133,000; 65,000; 92,000; 225,000
Liabilities: 27,000; 18,000; 45,000; 36,000; 20,000; 56,000; 101,000
Owner's Equity: 124,000; 225,000 
A) Assets: 9,000; 17,000; 42,000; 65,000; 133,000; 92,000; 225,000
Liabilities: 20,000; 18,000; 38,000; 36,000; 27,000; 63,000; 101,000
Owner's Equity: 124,000; 225,000 
B) Assets: 9,000; 17,000; 42,000; 65,000; 133,000; 92,000; 225,000
Liabilities: 27,000; 18,000; 45,000; 36,000; 20,000; 56,000; 124,000
Owner's Equity: 101,000; 225,000 
C) Assets: 9,000; 17,000; 42,000; 65,000; 133,000; 92,000; 225,000
Liabilities: 27,000; 18,000; 45,000; 36,000; 20,000; 56,000; 101,000
Owner's Equity: 124,000; 225,000 
D) Assets: 9,000; 17,000; 42,000; 133,000; 65,000; 92,000; 225,000
Liabilities: 27,000; 18,000; 45,000; 36,000; 20,000; 56,000; 101,000
Owner's Equity: 124,000; 225,000

Question 7

Find the ratio of net income after taxes to average owner's equity. Round to the nearest tenth of a percent.
-Owner's equity at beginning of year: $602,000. Owner's equity at end of year: $806,000. Net income after taxes: $93,500.

Accepted Answer

A) 15.5% 
B) 11.6% 
C) 15.6% 
D) 13.3% 
A) 15.5% 
B) 11.6% 
C) 15.6% 
D) 13.3%

Question 8

The table compares the national averages for an industry to the results for a given company in the industry. Identify any areas that might require attention by management and offer suggestions.
-

Accepted Answer

Net income is lower while wage

Question 9

Calculate the current ratio and the acid-test ratio. Is the company healthy based on the guidelines given in the text?
-

Accepted Answer

A) Current ratio = 1.31 which is too low
Acid-test ratio = 2.09 which is fine 
B) Current ratio = 2.09 which is fine
Acid-test ratio = 1.60 which is fine 
C) Current ratio = 2.09 which is fine
Acid-test ratio = 1.31 which is fine 
D) Current ratio = 1.60 which is low
Acid-test ratio = 1.31 which is fine 
A) Current ratio = 1.31 which is too low
Acid-test ratio = 2.09 which is fine 
B) Current ratio = 2.09 which is fine
Acid-test ratio = 1.60 which is fine 
C) Current ratio = 2.09 which is fine
Acid-test ratio = 1.31 which is fine 
D) Current ratio = 1.60 which is low
Acid-test ratio = 1.31 which is fine

Question 10

Complete the balance sheet using vertical analysis. Round to the nearest tenth of a percent.
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Accepted Answer

The answer of Complete the balance sheet using vertical analysis....

Question 11

Find the ratio of net income after taxes to average owner's equity. Round to the nearest tenth of a percent.
-Owner's equity at beginning of year: $1,748,000. Owner's equity at end of year: $2,122,000. Net income after taxes: $447,500.

Accepted Answer

A) 23.1% 
B) 21.1% 
C) 25.7% 
D) 25.6% 
A) 23.1% 
B) 21.1% 
C) 25.7% 
D) 25.6%

Question 12

Prepare a vertical analysis. Round percents to the nearest tenth of a percent.
-Wandell's Garden Shop had a cost of goods sold of $111,000, operating expenses of $43,000, and net sales of $203,000.

Accepted Answer

A) Percent cost of goods sold = 21.2%
Percent operating expenses = 54.7% 
B) Percent cost of goods sold = 33.5%
Percent operating expenses = 54.7% 
C) Percent cost of goods sold = 54.7%
Percent operating expenses = 21.2% 
D) Percent cost of goods sold = 54.7%
Percent operating expenses = 33.5% 
A) Percent cost of goods sold = 21.2%
Percent operating expenses = 54.7% 
B) Percent cost of goods sold = 33.5%
Percent operating expenses = 54.7% 
C) Percent cost of goods sold = 54.7%
Percent operating expenses = 21.2% 
D) Percent cost of goods sold = 54.7%
Percent operating expenses = 33.5%

Question 13

The table compares the national averages for an industry to the results for a given company in the industry. Identify any areas that might require attention by management and offer suggestions.
-

Accepted Answer

Net income is lower

Question 14

Complete the balance sheet.
-Clara's Secretarial Services: net worth $71,000; cash $39,000; accounts receivable $24,000; inventory $41,000; fixed assets $40,000; long-term notes $26,000; mortgages $10,000; accounts payable
$14,000; notes payable $23,000

Accepted Answer

A) Assets: 39,000; 0; 24,000; 41,000; 104,000; 40,000; 144,000
Liabilities: 26,000; 14,000; 40,000; 10,000; 23,000; 33,000; 73,000
Owner's Equity: 71,000; 144,000 
B) Assets: 39,000; 0; 24,000; 41,000; 104,000; 40,000; 144,000
Liabilities: 23,000; 14,000; 37,000; 10,000; 26,000; 36,000; 73,000
Owner's Equity: 71,000; 144,000 
C) Assets: 39,000; 0; 24,000; 104,000; 41,000; 40,000; 144,000
Liabilities: 26,000; 14,000; 40,000; 10,000; 23,000; 33,000; 73,000
Owner's Equity: 71,000; 144,000 
D) Assets: 39,000; 0; 24,000; 41,000; 104,000; 40,000; 144,000
Liabilities: 26,000; 14,000; 40,000; 10,000; 23,000; 33,000; 71,000
Owner's Equity: 73,000; 144,000 
A) Assets: 39,000; 0; 24,000; 41,000; 104,000; 40,000; 144,000
Liabilities: 26,000; 14,000; 40,000; 10,000; 23,000; 33,000; 73,000
Owner's Equity: 71,000; 144,000 
B) Assets: 39,000; 0; 24,000; 41,000; 104,000; 40,000; 144,000
Liabilities: 23,000; 14,000; 37,000; 10,000; 26,000; 36,000; 73,000
Owner's Equity: 71,000; 144,000 
C) Assets: 39,000; 0; 24,000; 104,000; 41,000; 40,000; 144,000
Liabilities: 26,000; 14,000; 40,000; 10,000; 23,000; 33,000; 73,000
Owner's Equity: 71,000; 144,000 
D) Assets: 39,000; 0; 24,000; 41,000; 104,000; 40,000; 144,000
Liabilities: 26,000; 14,000; 40,000; 10,000; 23,000; 33,000; 71,000
Owner's Equity: 73,000; 144,000

Calculate the current ratio and the acid-test ratio. Is the company healthy based on the guidelines given in the text? -

Find (a) the gross profit, (b) the net income before taxes, and (c) the net income after taxes. -Steel Master Sales had a cost of goods sold of $244,000, operating expenses of $157,000, returns of $16,000, taxes of $26,900, and gross sales of $538,000.

Complete the horizontal analysis for the balance sheet. Round to the nearest tenth of a percent. -

Complete the horizontal analysis for the comparative income statement. Round to the nearest tenth of a percent. -

The following chart shows some figures from an income statement. Prepare a vertical analysis by expressing each item as a percent of net sales. Round percents to the nearest tenth of a percent. -

Complete the balance sheet. -Mullen's Hardware: mortgage $36,000; notes payable $20,000; accounts payable $18,000; long-term notes $27,000; fixed assets $92,000; inventory $65,000; accounts receivable $42,000; notes receivable $17,000; cash $9,000; owner's equity $124,000

Find the ratio of net income after taxes to average owner's equity. Round to the nearest tenth of a percent. -Owner's equity at beginning of year: $602,000. Owner's equity at end of year: $806,000. Net income after taxes: $93,500.

The table compares the national averages for an industry to the results for a given company in the industry. Identify any areas that might require attention by management and offer suggestions. -

Calculate the current ratio and the acid-test ratio. Is the company healthy based on the guidelines given in the text? -

Complete the balance sheet using vertical analysis. Round to the nearest tenth of a percent. -

Find the ratio of net income after taxes to average owner's equity. Round to the nearest tenth of a percent. -Owner's equity at beginning of year: $1,748,000. Owner's equity at end of year: $2,122,000. Net income after taxes: $447,500.

Prepare a vertical analysis. Round percents to the nearest tenth of a percent. -Wandell's Garden Shop had a cost of goods sold of $111,000, operating expenses of $43,000, and net sales of $203,000.

The table compares the national averages for an industry to the results for a given company in the industry. Identify any areas that might require attention by management and offer suggestions. -

Complete the balance sheet. -Clara's Secretarial Services: net worth $71,000; cash $39,000; accounts receivable $24,000; inventory $41,000; fixed assets $40,000; long-term notes $26,000; mortgages $10,000; accounts payable $14,000; notes payable $23,000

Whole Numbers and Decimals

Fractions

Percents

Equations and Formulas

Bank Services

Payroll

Mathematics of Buying

Mathematics of Selling

Simple Interest

Compound Interest and Inflation

Annuities, Stocks, and Bonds

Business and Consumer Loans

Taxes and Insurance

Depreciation

Budgeting and Business Statistics

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Exam 15: Financial Statements and Ratios

Calculate the current ratio and the acid-test ratio. Is the company healthy based on the guidelines given in the text? -

Find (a) the gross profit, (b) the net income before taxes, and (c) the net income after taxes. -Steel Master Sales had a cost of goods sold of $244,000, operating expenses of $157,000, returns of $16,000, taxes of $26,900, and gross sales of $538,000.

Complete the horizontal analysis for the balance sheet. Round to the nearest tenth of a percent. -

Complete the horizontal analysis for the comparative income statement. Round to the nearest tenth of a percent. -

The following chart shows some figures from an income statement. Prepare a vertical analysis by expressing each item as a percent of net sales. Round percents to the nearest tenth of a percent. -

Complete the balance sheet. -Mullen's Hardware: mortgage $36,000; notes payable $20,000; accounts payable $18,000; long-term notes $27,000; fixed assets $92,000; inventory $65,000; accounts receivable $42,000; notes receivable $17,000; cash $9,000; owner's equity $124,000

Find the ratio of net income after taxes to average owner's equity. Round to the nearest tenth of a percent. -Owner's equity at beginning of year: $602,000. Owner's equity at end of year: $806,000. Net income after taxes: $93,500.

The table compares the national averages for an industry to the results for a given company in the industry. Identify any areas that might require attention by management and offer suggestions. -

Calculate the current ratio and the acid-test ratio. Is the company healthy based on the guidelines given in the text? -

Complete the balance sheet using vertical analysis. Round to the nearest tenth of a percent. -

Find the ratio of net income after taxes to average owner's equity. Round to the nearest tenth of a percent. -Owner's equity at beginning of year: $1,748,000. Owner's equity at end of year: $2,122,000. Net income after taxes: $447,500.

Prepare a vertical analysis. Round percents to the nearest tenth of a percent. -Wandell's Garden Shop had a cost of goods sold of $111,000, operating expenses of $43,000, and net sales of $203,000.

The table compares the national averages for an industry to the results for a given company in the industry. Identify any areas that might require attention by management and offer suggestions. -

Complete the balance sheet. -Clara's Secretarial Services: net worth $71,000; cash $39,000; accounts receivable $24,000; inventory $41,000; fixed assets $40,000; long-term notes $26,000; mortgages $10,000; accounts payable $14,000; notes payable $23,000

Whole Numbers and Decimals

Fractions

Percents

Equations and Formulas

Bank Services

Payroll

Mathematics of Buying

Mathematics of Selling

Simple Interest

Compound Interest and Inflation

Annuities, Stocks, and Bonds

Business and Consumer Loans

Taxes and Insurance

Depreciation

Budgeting and Business Statistics

Filters