Question 1

Calculate the return on common shareholders' equity for 20 × 4

Accepted Answer

($116,000 + $102,000)/2 = $109,000
$23,000/$109,000 = 21.10%

Question 2

Lisa Inc.'s current ratio at December 31,20 × 7,was closest to:

Accepted Answer

A)  0.6 to 1. 
B)  1.1 to 1. 
C)  1.8 to 1. 
D)  2.0 to 1. 
A)  0.6 to 1. 
B)  1.1 to 1. 
C)  1.8 to 1. 
D)  2.0 to 1. D

Question 3

Jimbob Co.is considering ways to finance a planned business expansion after which the company will have $150,000 in earnings before interest and income taxes.The income tax rate is 30%.One alternative being considered is to issue new long-term debt of $500,000 with an annual interest rate of 8%.The company's common shareholders' equity is expected to average $500,000.What will be the return on common shareholders' equity if this alternative is taken?

Accepted Answer

A)  0%. 
B)  10.5%. 
C)  15.4%. 
D)  30%. 
A)  0%. 
B)  10.5%. 
C)  15.4%. 
D)  30%. C

Question 4

Marcial Company's accounts receivable turnover for 20 × 6 was closest to:

Accepted Answer

A)  8.4 times. 
B)  10.4 times. 
C)  12.1 times. 
D)  14.8 times. 
A)  8.4 times. 
B)  10.4 times. 
C)  12.1 times. 
D)  14.8 times.

Question 5

March Company's accounts receivable turnover for 20 × 6 was closest to:

Accepted Answer

A)  7.2 times. 
B)  7.5 times. 
C)  10.4 times. 
D)  10.7 times. 
A)  7.2 times. 
B)  7.5 times. 
C)  10.4 times. 
D)  10.7 times.

Question 6

Marcial Company's average collection period (age of receivables)for 20 × 6 was closest to:

Accepted Answer

A)  24.6 days. 
B)  30.2 days. 
C)  35.2 days. 
D)  43.2 days. 
A)  24.6 days. 
B)  30.2 days. 
C)  35.2 days. 
D)  43.2 days.

Question 7

The dividend payout ratio for the prior year was:

Accepted Answer

A)  55.6%. 
B)  85.7%. 
C)  114.3%. 
D)  140.0%. 
A)  55.6%. 
B)  85.7%. 
C)  114.3%. 
D)  140.0%.

Question 8

Oratz Company's average collection period (age of receivables)for 20 × 6 was closest to:

Accepted Answer

A)  29.1 days. 
B)  40.3 days. 
C)  41.6 days. 
D)  57.6 days. 
A)  29.1 days. 
B)  40.3 days. 
C)  41.6 days. 
D)  57.6 days.

Question 9

Calculate the acid-test (quick)ratio for 20 × 4

Accepted Answer

$48,800/$1

Question 10

Grapp Company had $130,000 in sales on account last year.The beginning accounts receivable balance was $18,000 and the ending accounts receivable balance was $16,000.The company's average collection period (age of receivables)was closest to:

Accepted Answer

A)  44.92 days. 
B)  47.73 days. 
C)  50.54 days. 
D)  95.46 days. 
A)  44.92 days. 
B)  47.73 days. 
C)  50.54 days. 
D)  95.46 days.

Question 11

Narlock Company's times interest earned for 20 × 6 was closest to:

Accepted Answer

A)  5.0 times. 
B)  7.2 times. 
C)  8.2 times. 
D)  13.6 times. 
A)  5.0 times. 
B)  7.2 times. 
C)  8.2 times. 
D)  13.6 times.

Question 12

Narumi Company's debt-to-equity ratio at the end of 20 × 6 was closest to:

Accepted Answer

A)  0.42 to 1. 
B)  0.56 to 1. 
C)  0.98 to 1. 
D)  2.07 to 1. 
A)  0.42 to 1. 
B)  0.56 to 1. 
C)  0.98 to 1. 
D)  2.07 to 1.

Question 13

Larosa Company's dividend payout ratio for 20 × 6 was closest to:

Accepted Answer

A)  6.5%. 
B)  10.6%. 
C)  17.9%. 
D)  21.7%. 
A)  6.5%. 
B)  10.6%. 
C)  17.9%. 
D)  21.7%.

Question 14

Irally Company,a retailer,had cost of goods sold of $150,000 last year.The beginning inventory balance was $26,000 and the ending inventory balance was $24,000.The company's average sale period (turnover in days)was closest to:

Accepted Answer

A)  58.40 days. 
B)  60.83 days. 
C)  63.27 days. 
D)  121.67 days. 
A)  58.40 days. 
B)  60.83 days. 
C)  63.27 days. 
D)  121.67 days.

Question 15

March Company's current ratio at the end of 20 × 6 was closest to:

Accepted Answer

A)  0.47 to 1. 
B)  0.49 to 1. 
C)  1.27 to 1. 
D)  1.45 to 1. 
A)  0.47 to 1. 
B)  0.49 to 1. 
C)  1.27 to 1. 
D)  1.45 to 1.

Question 16

Which one of the following would increase the working capital of a company?

Accepted Answer

A)  Cash payment of payroll taxes payable. 
B)  Refinancing a short-term note payable with a two-year note payable. 
C)  Cash collection of accounts receivable. 
D)  Payment of a 20-year mortgage payable with cash. 
A)  Cash payment of payroll taxes payable. 
B)  Refinancing a short-term note payable with a two-year note payable. 
C)  Cash collection of accounts receivable. 
D)  Payment of a 20-year mortgage payable with cash.

Question 17

Oratz Company's dividend yield ratio on December 31,20 × 6 was closest to:

Accepted Answer

A)  0.5%. 
B)  5.2%. 
C)  5.5%. 
D)  5.7%. 
A)  0.5%. 
B)  5.2%. 
C)  5.5%. 
D)  5.7%.

Question 18

Calculate the current ratio for 20 × 4

Accepted Answer

$74,000/18

Question 19

Larosa Company's dividend yield ratio on December 31,20 × 6 was closest to:

Accepted Answer

A)  1.0%. 
B)  1.8%. 
C)  2.4%. 
D)  3.1%. 
A)  1.0%. 
B)  1.8%. 
C)  2.4%. 
D)  3.1%.

Question 20

What is the amount of the company's working capital?

Accepted Answer

A)  $160.000. 
B)  $170,000. 
C)  $600,000. 
D)  $740,000. 
A)  $160.000. 
B)  $170,000. 
C)  $600,000. 
D)  $740,000.

Calculate the return on common shareholders' equity for 20 × 4

Lisa Inc.'s current ratio at December 31,20 × 7,was closest to:

Marcial Company's accounts receivable turnover for 20 × 6 was closest to:

March Company's accounts receivable turnover for 20 × 6 was closest to:

Marcial Company's average collection period (age of receivables)for 20 × 6 was closest to:

The dividend payout ratio for the prior year was:

Oratz Company's average collection period (age of receivables)for 20 × 6 was closest to:

Calculate the acid-test (quick)ratio for 20 × 4

Grapp Company had $130,000 in sales on account last year.The beginning accounts receivable balance was $18,000 and the ending accounts receivable balance was $16,000.The company's average collection period (age of receivables)was closest to:

Narlock Company's times interest earned for 20 × 6 was closest to:

Narumi Company's debt-to-equity ratio at the end of 20 × 6 was closest to:

Larosa Company's dividend payout ratio for 20 × 6 was closest to:

Irally Company,a retailer,had cost of goods sold of $150,000 last year.The beginning inventory balance was $26,000 and the ending inventory balance was $24,000.The company's average sale period (turnover in days)was closest to:

March Company's current ratio at the end of 20 × 6 was closest to:

Which one of the following would increase the working capital of a company?

Oratz Company's dividend yield ratio on December 31,20 × 6 was closest to:

Calculate the current ratio for 20 × 4

Larosa Company's dividend yield ratio on December 31,20 × 6 was closest to:

What is the amount of the company's working capital?

An Introduction to Managerial Accounting and Cost Concepts

Systems Design: Job-Order Costing

Systems Design: Activity-Based Costing

Systems Design: Process Costing

Cost Behavior: Analysis and Use

Cost-Volume-Profit Relationships

Profit Planning

Standard Costs

Flexible Budgets and Overhead Analysis

Decentralization

Relevant Costs for Decision Making

Capital Budgeting Decisions

How Well Am I Doing Financial Statement Analysis

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Exam 13: How Well Am I Doing Statement of Cash Flows

Calculate the return on common shareholders' equity for 20 × 4

Lisa Inc.'s current ratio at December 31,20 × 7,was closest to:

Marcial Company's accounts receivable turnover for 20 × 6 was closest to:

March Company's accounts receivable turnover for 20 × 6 was closest to:

Marcial Company's average collection period (age of receivables)for 20 × 6 was closest to:

The dividend payout ratio for the prior year was:

Oratz Company's average collection period (age of receivables)for 20 × 6 was closest to:

Calculate the acid-test (quick)ratio for 20 × 4

Grapp Company had $130,000 in sales on account last year.The beginning accounts receivable balance was $18,000 and the ending accounts receivable balance was $16,000.The company's average collection period (age of receivables)was closest to:

Narlock Company's times interest earned for 20 × 6 was closest to:

Narumi Company's debt-to-equity ratio at the end of 20 × 6 was closest to:

Larosa Company's dividend payout ratio for 20 × 6 was closest to:

Irally Company,a retailer,had cost of goods sold of $150,000 last year.The beginning inventory balance was $26,000 and the ending inventory balance was $24,000.The company's average sale period (turnover in days)was closest to:

March Company's current ratio at the end of 20 × 6 was closest to:

Which one of the following would increase the working capital of a company?

Oratz Company's dividend yield ratio on December 31,20 × 6 was closest to:

Calculate the current ratio for 20 × 4

Larosa Company's dividend yield ratio on December 31,20 × 6 was closest to:

What is the amount of the company's working capital?

An Introduction to Managerial Accounting and Cost Concepts

Systems Design: Job-Order Costing

Systems Design: Activity-Based Costing

Systems Design: Process Costing

Cost Behavior: Analysis and Use

Cost-Volume-Profit Relationships

Profit Planning

Standard Costs

Flexible Budgets and Overhead Analysis

Decentralization

Relevant Costs for Decision Making

Capital Budgeting Decisions

How Well Am I Doing Financial Statement Analysis

Filters