Question 1

Financial statements for Maraby Corporation appear below:
    
-Maraby Corporation's average sale period for Year 2 was closest to:

Accepted Answer

A)  38.8 days 
B)  32.6 days 
C)  46.6 days 
D)  27.0 days 
A)  38.8 days 
B)  32.6 days 
C)  46.6 days 
D)  27.0 days A

Question 2

Kopas Corporation has provided the following data:
$\begin{array}{lrr}&\text { This Year}&\text { Last Year }\
\text { Accounts receivable ....... } & \$ 89,000 & \$ 107,000 \
\text { Inventory .................... } & \$ 160,000 & \$ 156,000 \
\text { Sales on account .......... } & \$ 627,000 & \
\text { Cost of goods sold.......... } & \$ 488,000 &
\end{array}$ The inventory turnover for this year is closest to:

Accepted Answer

A)  3.09 
B)  0.98 
C)  1.03 
D)  3.05 
A)  3.09 
B)  0.98 
C)  1.03 
D)  3.05 A

Question 3

Financial statements for Maraby Corporation appear below:
    
-Maraby Corporation's acid-test (quick)ratio at the end of Year 2 was closest to:

Accepted Answer

A)  0.51 
B)  0.47 
C)  1.14 
D)  1.95 
A)  0.51 
B)  0.47 
C)  1.14 
D)  1.95 C

Question 4

Settles Corporation has provided the following financial data:
     Dividends on common stock during Year 2 totaled $5,400. The market price of common stock at the end of Year 2 was $5.89 per share.
-The company's book value per share at the end of the year is closest to:

Accepted Answer

A)  $11.37 per share 
B)  $7.37 per share 
C)  $0.19 per share 
D)  $16.81 per share 
A)  $11.37 per share 
B)  $7.37 per share 
C)  $0.19 per share 
D)  $16.81 per share

Question 5

Data from Dunshee Corporation's most recent balance sheet appear below:
 $\begin{array}{lrr}
&\text { Year 2 } & \text { Year 1 } \\text { Current assets: }\
\text { Cash}&\$ 130 & \$ 100 \
\text { Accounts receivable, net.}&270 & 290 \
\text {Inventory }&90 & 110 \
\text {Prepaid expenses }&10 & 10\
\text { Total current assets. }&\$500&\$510\
\text { Total current liabilities }&\$230&\$220
\end{array}$ Sales on account in Year 2 amounted to $1,170 and the cost of goods sold was $730.
-The acid-test (quick)ratio at the end of Year 2 is closest to:

Accepted Answer

A)  2.17 
B)  1.78 
C)  1.74 
D)  1.06 
A)  2.17 
B)  1.78 
C)  1.74 
D)  1.06

Question 6

Deflorio Corporation's inventory at the end of Year 2 was $156,000 and its inventory at the end of Year 1 was $140,000.The company's total assets at the end of Year 2 were $1,416,000 and its total assets at the end of Year 1 were $1,390,000.Sales amounted to $1,320,000 in Year 2.The company's total asset turnover for Year 2 is closest to:

Accepted Answer

A)  0.94 
B)  1.06 
C)  5.38 
D)  0.19 
A)  0.94 
B)  1.06 
C)  5.38 
D)  0.19

Question 7

Settles Corporation has provided the following financial data:
     Dividends on common stock during Year 2 totaled $5,400. The market price of common stock at the end of Year 2 was $5.89 per share.
-The company's return on equity for Year 2 is closest to:

Accepted Answer

A)  3.31% 
B)  8.50% 
C)  5.09% 
D)  50.52% 
A)  3.31% 
B)  8.50% 
C)  5.09% 
D)  50.52%

Question 8

Younis Corporation's income statement appears below:
$\begin{array}{lr}\text { Income Statement }\
\text {Sales (all on account) }&\$1,240,000\
\text {Cost of goods sold }&780,000\
\text { Gross margin}&460,000\
\text {Operating expenses. }&416,571\
\text {Net operating income }&43,429\
\text {Interest expense }&14,000\
\text {Net income before taxes }&29,429\
\text {Income taxes (35\%) }&8,829\
\text {Net income }&\$20,600\
\end{array}$ The company's net profit margin percentage is closest to:

Accepted Answer

A)  37.1% 
B)  3.5% 
C)  2.4% 
D)  1.7% 
A)  37.1% 
B)  3.5% 
C)  2.4% 
D)  1.7%

Question 9

Data from Dalpiaz Corporation's most recent balance sheet and income statement appear below:
   Required:
Compute the average collection period for this year:

Accepted Answer

Average collection period = 365 days ÷ A

Question 10

The gross margin percentage is equal to:

Accepted Answer

A)  (Net operating income + Selling and administrative expenses)/Sales 
B)  Net operating income/Sales 
C)  Cost of goods sold/Sales 
D)  Cost of goods sold/Net income 
A)  (Net operating income + Selling and administrative expenses)/Sales 
B)  Net operating income/Sales 
C)  Cost of goods sold/Sales 
D)  Cost of goods sold/Net income

Question 11

Garrott Corporation's total assets were $1,505,000 at the end of Year 2 and $1,520,000 at the end of Year 1. Its total stockholders' equity was $1,197,000 at the end of Year 2 and $1,180,000 at the end of Year 1.
  
-The company's gross margin percentage for Year 2 is closest to:

Accepted Answer

A)  4.9% 
B)  61.4% 
C)  38.1% 
D)  2031.9% 
A)  4.9% 
B)  61.4% 
C)  38.1% 
D)  2031.9%

Question 12

Abdool Corporation has provided the following financial data:
     Required:
a.What is the company's working capital at the end of Year 2?
b.What is the company's current ratio at the end of Year 2?
c.What is the company's acid-test (quick)ratio at the end of Year 2?
d.What is the company's accounts receivable turnover for Year 2?
e.What is the company's average collection period for Year 2?
f.What is the company's inventory turnover for Year 2?
g.What is the company's average sale period for Year 2?
h.What is the company's operating cycle for Year 2?
i.What is the company's total asset turnover for Year 2?

Accepted Answer

a.Working capital = Current assets - Cur

Question 13

McRae Corporation's total current assets are $380,000,its noncurrent assets are $500,000,its total current liabilities are $340,000,its long-term liabilities are $250,000,and its stockholders' equity is $290,000.Working capital is:

Accepted Answer

A)  $380,000 
B)  $40,000 
C)  $250,000 
D)  $290,000 
A)  $380,000 
B)  $40,000 
C)  $250,000 
D)  $290,000

Question 14

Norton Inc.could improve its current ratio of 2 by:

Accepted Answer

A)  paying a previously declared stock dividend. 
B)  writing off an uncollectible receivable. 
C)  selling merchandise on credit at a profit. 
D)  purchasing inventory on credit. 
A)  paying a previously declared stock dividend. 
B)  writing off an uncollectible receivable. 
C)  selling merchandise on credit at a profit. 
D)  purchasing inventory on credit.

Question 15

The accounts receivable for Note Corporation was $240,000 at the beginning of the year and $260,000 at the end of the year.If the accounts receivable turnover for the year was 8 and 20% of the total sales were cash sales,the total sales for the year were:

Accepted Answer

A)  $2,600,000 
B)  $2,000,000 
C)  $2,400,000 
D)  $2,500,000 
A)  $2,600,000 
B)  $2,000,000 
C)  $2,400,000 
D)  $2,500,000

Question 16

Neef Corporation has provided the following financial data from its balance sheet and income statement:
    
-The company's net profit margin percentage for Year 2 is closest to:

Accepted Answer

A)  37.3% 
B)  2.6% 
C)  1.4% 
D)  0.9% 
A)  37.3% 
B)  2.6% 
C)  1.4% 
D)  0.9%

Question 17

Shipley Corporation has provided the following data from its most recent balance sheet:
$$\begin{array} { l l l } 
\text { Tatal assets......... } & \$ 760,000 \
\text { Tatal liabilities } \ldots \ldots \ldots & \$ 590,00\
\text { Tatal stackhalders' equity...... } & \$ 170,000
\end{array}$$ The debt-to-equity ratio is closest to:

Accepted Answer

A)  0.29 
B)  3.47 
C)  0.22 
D)  0.78 
A)  0.29 
B)  3.47 
C)  0.22 
D)  0.78

Question 18

Doonan Corporation has provided the following financial data from its balance sheet and income statement:
   The market price of common stock at the end of Year 2 was $4.79 per share.
-The company's earnings per share for Year 2 is closest to:

Accepted Answer

A)  $6.33 per share 
B)  $0.29 per share 
C)  $0.45 per share 
D)  $0.62 per share 
A)  $6.33 per share 
B)  $0.29 per share 
C)  $0.45 per share 
D)  $0.62 per share

Question 19

The acid-test ratio is usually greater than the current ratio.

Accepted Answer

A) True 
 B)False

Question 20

Leflore Corporation has provided the following data:
  Dividends on common stock during Year 2 totaled $6,000.The market price of common stock at the end of Year 2 was $1.38 per share.The company's dividend yield ratio for Year 2 is closest to:

Accepted Answer

A)  4.3% 
B)  1.2% 
C)  35.0% 
D)  50.0% 
A)  4.3% 
B)  1.2% 
C)  35.0% 
D)  50.0%

Exam 15: Financial Statement Analysis

Financial statements for Maraby Corporation appear below: -Maraby Corporation's average sale period for Year 2 was closest to:

Kopas Corporation has provided the following data: This Year Last Year Accounts receivable ....... \ 89,000 \ 107,000 Inventory .................... \ 160,000 \ 156,000 Sales on account .......... \ 627,000 Cost of goods sold.......... \ 488,000 The inventory turnover for this year is closest to:

Financial statements for Maraby Corporation appear below: -Maraby Corporation's acid-test (quick)ratio at the end of Year 2 was closest to:

Settles Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $5,400. The market price of common stock at the end of Year 2 was $5.89 per share. -The company's book value per share at the end of the year is closest to:

Settles Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $5,400. The market price of common stock at the end of Year 2 was $5.89 per share. -The company's return on equity for Year 2 is closest to:

Data from Dalpiaz Corporation's most recent balance sheet and income statement appear below: Required: Compute the average collection period for this year:

The gross margin percentage is equal to:

Garrott Corporation's total assets were $1,505,000 at the end of Year 2 and $1,520,000 at the end of Year 1. Its total stockholders' equity was $1,197,000 at the end of Year 2 and $1,180,000 at the end of Year 1. -The company's gross margin percentage for Year 2 is closest to:

McRae Corporation's total current assets are $380,000,its noncurrent assets are $500,000,its total current liabilities are $340,000,its long-term liabilities are $250,000,and its stockholders' equity is $290,000.Working capital is:

Norton Inc.could improve its current ratio of 2 by:

The accounts receivable for Note Corporation was $240,000 at the beginning of the year and $260,000 at the end of the year.If the accounts receivable turnover for the year was 8 and 20% of the total sales were cash sales,the total sales for the year were:

Neef Corporation has provided the following financial data from its balance sheet and income statement: -The company's net profit margin percentage for Year 2 is closest to:

Shipley Corporation has provided the following data from its most recent balance sheet: Tatal assets......... \ 760,000 Tatal liabilities \ldots\ldots\ldots \ 590,00 Tatal stackhalders' equity...... \ 170,000 The debt-to-equity ratio is closest to:

Doonan Corporation has provided the following financial data from its balance sheet and income statement: The market price of common stock at the end of Year 2 was $4.79 per share. -The company's earnings per share for Year 2 is closest to:

The acid-test ratio is usually greater than the current ratio.

Leflore Corporation has provided the following data: Dividends on common stock during Year 2 totaled $6,000.The market price of common stock at the end of Year 2 was $1.38 per share.The company's dividend yield ratio for Year 2 is closest to:

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Production Costs

Job-Order Costing: Cost Flows and External Reporting

Process Costing

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Super-Variable Costing

Master Budgeting

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Statement of Cash Flows

Cost of Quality

Activity-Based Absorption Costing

The Predetermined Overhead Rate and Capacity

Job-Order Costing: a Microsoft Excel-Based Approach

Fifo Method

Service Department Allocations

Analyzing Mixed Costs

Time-Driven Activity-Based Costing: a Microsoft Excel-Based Approach

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Standard Cost Systems: a Financial Reporting Perspective Using Microsoft Excel

Transfer Pricing

Service Department Charges

Pricing Decisions

The Concept of Present Value

Income Taxes and the Present Value Method

the Direct Method of Determining the Net Cash Provided by Operating Activities

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