A portion of Lapore Corporation's Balance Sheet appears below: $\begin{array}{lrr} \text { Liabilities and Stockholders' Equity }&{\text { Year 2 }} & \text { Year 1 } \\ \text { Current liabilities: }& \\ \text {Accounts payable }&\$ 209,000 & \$ 200,000 \\ \text {Accrued liabilities }&27,000 & 30,000 \\ \text {Notes payable,short term }&94,000 & 90,000 \\ \text { Total current liabilities. }&330,000 & 320,000 \\ \text {Bonds payable. }&280,000 & 280,000 \\ \text {otal liabilities }& 610,000 & 600,000\\\text { Stockholders' equity: }\\ \text {Common stock, \( \$ 4 $ parvalue }&360,000 & 360,000 \\ \text {Additional paid-in capital }&70,000 & 70,000 \\ \text {Retained earnings }&589,000 & 570,000\\ \text {Total stockholders' equity. }&1,019,000&1,000,000\\ \text {Total liabilities \& stockholders' equity. }&\$1,629,000&\$1,600,000 \end{array}\) The company's debt-to-equity ratio at the end of Year 2 is closest to:

A) 0.60 B) 0.37 C) 0.39 D) 0.27 A) 0.60 B) 0.37 C) 0.39 D) 0.27

Ribaudo Corporation has provided the following financial data from its balance sheet and income statement: $\begin{array}{lrr}&\text { Year 2 } & \text { Year 1 } \\ \text { Cash}&\$ 74,000 & \$ 130,000 \\ \text { Accounts receivable, net}&\$ 255,000 & \$ 240,000 \\ \text {Inventory. }&\$ 173,000 & \$ 180,000 \\ \text {Total current assets }&\$ 564,000 & \$ 610,000 \\ \text {Total assets. }&\$ 1,350,000 & \$ 1,330,000 \\ \text {Accounts payable }&\$ 170,000 & \$ 160,000 \\ \text {Total liabilities }&\$ 633,000 & \$ 620,000 \\ \text {Total stockholders' equity. }&\$ 717,000 & \$ 710,000 \\ \text {Sales (all on account) }&\$ 1,290,000 & \\ \text {Cost of goods sold }&\$ 700,000 & \end{array}$ -The company's average sale period for Year 2 is closest to:

A) 91.9 days B) 48.9 days C) 90.1 days D) 198.1 days A) 91.9 days B) 48.9 days C) 90.1 days D) 198.1 days

Smay Corporation has provided the following data: $\begin{array}{lll}&\text { This Year}&\text { Last Year }\\ \text { Accounts receivable ....... } & \$ 107,000 & \$ 108,000 \\ \text { Inventory ..................... } & \$ 179,000 & \$ 187,000 \\ \text { Sales on account .......... } & \$ 654,000 & \\ \text { Cost of goods sold.......... } & \$ 461,000 & \end{array}$ The accounts receivable turnover for this year is closest to:

A) 1.01 B) 0.99 C) 6.08 D) 6.11 A) 1.01 B) 0.99 C) 6.08 D) 6.11

Ribaudo Corporation has provided the following financial data from its balance sheet and income statement: $\begin{array}{lrr}&\text { Year 2 } & \text { Year 1 } \\ \text { Cash}&\$ 74,000 & \$ 130,000 \\ \text { Accounts receivable, net}&\$ 255,000 & \$ 240,000 \\ \text {Inventory. }&\$ 173,000 & \$ 180,000 \\ \text {Total current assets }&\$ 564,000 & \$ 610,000 \\ \text {Total assets. }&\$ 1,350,000 & \$ 1,330,000 \\ \text {Accounts payable }&\$ 170,000 & \$ 160,000 \\ \text {Total liabilities }&\$ 633,000 & \$ 620,000 \\ \text {Total stockholders' equity. }&\$ 717,000 & \$ 710,000 \\ \text {Sales (all on account) }&\$ 1,290,000 & \\ \text {Cost of goods sold }&\$ 700,000 & \end{array}$ -The company's accounts receivable turnover for Year 2 is closest to:

A) 1.06 B) 5.06 C) 5.21 D) 0.94 A) 1.06 B) 5.06 C) 5.21 D) 0.94

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 average collection period for Year 2 is closest to:

A) 1.1 days B) 0.9 days C) 84.3 days D) 87.3 days A) 1.1 days B) 0.9 days C) 84.3 days D) 87.3 days

Exam 15: Financial Statement Analysis

The Seabury Corporation has a current ratio of 3.5 and an acid-test ratio of 2.8.The corporation's current assets consist of cash,marketable securities,accounts receivable,and inventories.Inventory equals $49,000.Seabury Corporation's current liabilities must be:

(Multiple Choice)

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Question 261

If the acid-test ratio is less than one,then paying off some current liabilities with cash will increase the acid-test (quick)ratio.

(True/False)

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Question 262

A portion of Lapore Corporation's Balance Sheet appears below: Liabilities and Stockholders' Equity Year 2 Year 1 Current liabilities: Accounts payable \ 209,000 \ 200,000 Accrued liabilities 27,000 30,000 Notes payable,short term 94,000 90,000 Total current liabilities. 330,000 320,000 Bonds payable. 280,000 280,000 otal liabilities 610,000 600,000 Stockholders' equity: Common stock, \ 4 parvalue 360,000 360,000 Additional paid-in capital 70,000 70,000 Retained earnings 589,000 570,000 Total stockholders' equity. 1,019,000 1,000,000 Total liabilities \& stockholders' equity. \1 ,629,000 \1 ,600,000 The company's debt-to-equity ratio at the end of Year 2 is closest to:

(Multiple Choice)

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Question 263

Lasch Corporation has provided the following financial data from its balance sheet and income statement: -The company's times interest earned ratio for Year 2 is closest to:

(Multiple Choice)

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Question 264

Vogelsberg Corporation has provided the following financial data: The company's net operating income in Year 2 was $62,308; its interest expense was $12,000; and its net income was $32,700.Dividends on common stock during Year 2 totaled $2,700.The market price of common stock at the end of Year 2 was $6.37 per share. Required: a.What is the company's times interest earned ratio for Year 2? b.What is the company's debt-to-equity ratio at the end of Year 2? c.What is the company's equity multiplier at the end of Year 2? d.What is the company's earnings per share for Year 2? e.What is the company's price-earnings ratio for Year 2? f.What is the company's dividend payout ratio for Year 2? g.What is the company's dividend yield ratio for Year 2? h.What is the company's book value per share at the end of Year 2?

(Essay)

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Question 265

Ribaudo Corporation has provided the following financial data from its balance sheet and income statement: Year 2 Year 1 Cash \ 74,000 \ 130,000 Accounts receivable, net \ 255,000 \ 240,000 Inventory. \ 173,000 \ 180,000 Total current assets \ 564,000 \ 610,000 Total assets. \ 1,350,000 \ 1,330,000 Accounts payable \ 170,000 \ 160,000 Total liabilities \ 633,000 \ 620,000 Total stockholders' equity. \ 717,000 \ 710,000 Sales (all on account) \ 1,290,000 Cost of goods sold \ 700,000 -The company's average sale period for Year 2 is closest to:

(Multiple Choice)

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Question 266

All other things the same,when a company increases its inventories in anticipation of later higher sales,the accounts receivable turnover ratio for the current period increases.

(True/False)

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Question 267

Financial statements for Maraby Corporation appear below: -Maraby Corporation's current ratio at the end of Year 2 was closest to:

(Multiple Choice)

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Question 268

For Year 2,Etzkorn Corporation's sales were $1,480,000,its gross margin was $580,000,its net operating income was $63,714,its net income before taxes was $42,714,and its net income was $29,900.The company's total stockholders' equity at the end of Year 2 amounted to $829,000 and at the end of Year 1 to $800,000.The company's return on equity for Year 2 is closest to:

(Multiple Choice)

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Question 269

Sperle Corporation has provided the following data concerning its stockholders' equity accounts: Net income for Year 2 was $30,400. Dividends on common stock during Year 2 totaled $6,400. The market price of common stock at the end of Year 2 was $3.08 per share. -The company's earnings per share for Year 2 is closest to:

(Multiple Choice)

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Question 270

The gross margin percentage is computed by dividing sales by the gross margin.

(True/False)

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Question 271

All other things the same,purchasing merchandise inventory would have no effect on the accounts receivable turnover ratio at a retailer.

(True/False)

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Question 272

Excerpts from Sydner Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,390 and the cost of goods sold was $900. -The average sale period for Year 2 is closest to:

(Multiple Choice)

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Question 273

Smay Corporation has provided the following data: This Year Last Year Accounts receivable ....... \ 107,000 \ 108,000 Inventory ..................... \ 179,000 \ 187,000 Sales on account .......... \ 654,000 Cost of goods sold.......... \ 461,000 The accounts receivable turnover for this year is closest to:

(Multiple Choice)

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Question 274

Two-Rivers Inc.(TRI)manufactures a variety of consumer products.The company's founders have run the company for thirty years and are now interested in retiring.Consequently,they are seeking a purchaser,and a group of investors is looking into the acquisition of TRI.To evaluate its financial stability,TRI was requested to provide its latest financial statements and selected financial ratios.Summary information provided by TRI is presented below. Required: a.Calculate the select financial ratios for the fiscal year Year 2. b.Interpret what each of these financial ratios means in terms of TRI's financial stability and operating efficiency.

(Essay)

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Question 275

Medina Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $2,000.The market price of common stock at the end of Year 2 was $1.49 per share. Required: a.What is the company's times interest earned ratio for Year 2? b.What is the company's debt-to-equity ratio at the end of Year 2? c.What is the company's equity multiplier at the end of Year 2? d.What is the company's net profit margin percentage for Year 2? e.What is the company's gross margin percentage for Year 2? f.What is the company's return on total assets for Year 2? g.What is the company's return on equity for Year 2? h.What is the company's earnings per share for Year 2? i.What is the company's price-earnings ratio for Year 2? j.What is the company's dividend payout ratio for Year 2? k.What is the company's dividend yield ratio for Year 2? l.What is the company's book value per share at the end of Year 2?

(Essay)

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Question 276

Schepp Corporation has provided the following financial data: Required: a.What is the company's times interest earned ratio for Year 2? b.What is the company's debt-to-equity ratio at the end of Year 2? c.What is the company's equity multiplier at the end of Year 2? d.What is the company's net profit margin percentage for Year 2? e.What is the company's gross margin percentage for Year 2? f.What is the company's return on total assets for Year 2? g.What is the company's return on equity for Year 2?

(Essay)

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Question 277

Ribaudo Corporation has provided the following financial data from its balance sheet and income statement: Year 2 Year 1 Cash \ 74,000 \ 130,000 Accounts receivable, net \ 255,000 \ 240,000 Inventory. \ 173,000 \ 180,000 Total current assets \ 564,000 \ 610,000 Total assets. \ 1,350,000 \ 1,330,000 Accounts payable \ 170,000 \ 160,000 Total liabilities \ 633,000 \ 620,000 Total stockholders' equity. \ 717,000 \ 710,000 Sales (all on account) \ 1,290,000 Cost of goods sold \ 700,000 -The company's accounts receivable turnover for Year 2 is closest to:

(Multiple Choice)

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Question 278

Data from Dunshee Corporation's most recent balance sheet appear below: Year 2 Year 1 Current assets: Cash \ 130 \ 100 Accounts receivable, net. 270 290 Inventory 90 110 Prepaid expenses 10 10 Total current assets. \5 00 \5 10 Total current liabilities \2 30 \2 20 Sales on account in Year 2 amounted to $1,170 and the cost of goods sold was $730. -The average collection period for Year 2 is closest to:

(Multiple Choice)

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Question 279

Dahn Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $1,600. The market price of common stock at the end of Year 2 was $2.37 per share. -The company's total asset turnover for Year 2 is closest to:

(Multiple Choice)

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Question 280

The Seabury Corporation has a current ratio of 3.5 and an acid-test ratio of 2.8.The corporation's current assets consist of cash,marketable securities,accounts receivable,and inventories.Inventory equals $49,000.Seabury Corporation's current liabilities must be:

If the acid-test ratio is less than one,then paying off some current liabilities with cash will increase the acid-test (quick)ratio.

Lasch Corporation has provided the following financial data from its balance sheet and income statement: -The company's times interest earned ratio for Year 2 is closest to:

All other things the same,when a company increases its inventories in anticipation of later higher sales,the accounts receivable turnover ratio for the current period increases.

Financial statements for Maraby Corporation appear below: -Maraby Corporation's current ratio at the end of Year 2 was closest to:

The gross margin percentage is computed by dividing sales by the gross margin.

All other things the same,purchasing merchandise inventory would have no effect on the accounts receivable turnover ratio at a retailer.

Excerpts from Sydner Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,390 and the cost of goods sold was $900. -The average sale period for Year 2 is closest to:

Dahn Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $1,600. The market price of common stock at the end of Year 2 was $2.37 per share. -The company's total asset turnover 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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