Question 1

Acquiring land by taking out a long-term mortgage will not affect the current ratio.

Accepted Answer

A) True 
 B)False

Question 2

Natcher Corporation's accounts receivable at the end of Year 2 was $126,000 and its accounts receivable at the end of Year 1 was $130,000. The company's inventory at the end of Year 2 was $127,000 and its inventory at the end of Year 1 was $120,000. Sales, all on account, amounted to $1,380,000 in Year 2. Cost of goods sold amounted to $800,000 in Year 2. The company's operating cycle for Year 2 is closest to:

Accepted Answer

A) 44.7 days 
B) 17.3 days 
C) 62.8 days 
D) 90.2 days 
A) 44.7 days 
B) 17.3 days 
C) 62.8 days 
D) 90.2 days

Question 3

Kearin Corporation has provided the following financial data:     Dividends on common stock during Year 2 totaled $8,000. The market price of common stock at the end of Year 2 was $2.02 per share. The company's return on equity for Year 2 is closest to:

Accepted Answer

A) 71.44% 
B) 4.72% 
C) 2.97% 
D) 1.93% 
A) 71.44% 
B) 4.72% 
C) 2.97% 
D) 1.93%

Question 4

Lindboe Corporation has provided the following financial data:     Dividends on common stock during Year 2 totaled $4,800. The market price of common stock at the end of Year 2 was $5.46 per share.
Required:
a. What is the company's times interest earned 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?

Accepted Answer

a. Times interest earned = Net operating

Question 5

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 6

Cameron Corporation had 50,000 shares of common stock issued and outstanding that it originally issued for $40 per share. The following information pertains to these shares:   The total dividend on common stock for the year was $400,000. Cameron Corporation's dividend yield ratio for the year was:

Accepted Answer

A) 20.00% 
B) 11.43% 
C) 9.41% 
D) 8.89% 
A) 20.00% 
B) 11.43% 
C) 9.41% 
D) 8.89%

Question 7

Fayer Corporation has provided the following financial data:     Dividends on common stock during Year 2 totaled $4,500. The market price of common stock at the end of Year 2 was $10.88 per share. The company's times interest earned for Year 2 is closest to:

Accepted Answer

A) 7.71 
B) 2.61 
C) 5.01 
D) 4.01 
A) 7.71 
B) 2.61 
C) 5.01 
D) 4.01

Question 8

Tweedle Corporation's most recent balance sheet and income statement appear below:     The debt-to-equity ratio at the end of Year 2 is closest to:

Accepted Answer

A) 0.43 
B) 0.24 
C) 0.17 
D) 0.54 
A) 0.43 
B) 0.24 
C) 0.17 
D) 0.54

Question 9

A company's current ratio and an acid-test ratio are both greater than 1. Payment of an account payable would:

Accepted Answer

A) increase the current ratio but the acid-test ratio would not be affected. 
B) increase the acid-test ratio but the current ratio would not be affected. 
C) increase both the current and acid-test ratios. 
D) decrease both the current and acid-test ratios. 
A) increase the current ratio but the acid-test ratio would not be affected. 
B) increase the acid-test ratio but the current ratio would not be affected. 
C) increase both the current and acid-test ratios. 
D) decrease both the current and acid-test ratios.

Question 10

As the inventory turnover increases, the average sales period decreases.

Accepted Answer

A) True 
 B)False

Question 11

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 accounts receivable turnover for Year 2 is closest to:

Accepted Answer

A) 0.97 
B) 10.38 
C) 1.03 
D) 10.22 
A) 0.97 
B) 10.38 
C) 1.03 
D) 10.22

Question 12

Guttery Corporation has provided the following financial data from its balance sheet:   Sales on account in Year 2 totaled $1,450,000 and cost of goods sold totaled $900,000. The company's inventory turnover for Year 2 is closest to:

Accepted Answer

A) 5.17 
B) 5.56 
C) 6.00 
D) 0.86 
A) 5.17 
B) 5.56 
C) 6.00 
D) 0.86

Question 13

Steinkraus Corporation has provided the following data:   Required:
Compute the accounts receivable turnover for this year. Show your work!

Accepted Answer

Accounts receivable turnover =

Question 14

Data from Dunshee Corporation's most recent balance sheet appear below:   Sales on account in Year 2 amounted to $1,170 and the cost of goods sold was $730. The average sale period for Year 2 is closest to:

Accepted Answer

A) 28.1 days 
B) 45.0 days 
C) 50.0 days 
D) 227.7 days 
A) 28.1 days 
B) 45.0 days 
C) 50.0 days 
D) 227.7 days

Question 15

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%

Question 16

Financial statements for Praeger Corporation appear below:     Dividends during Year 2 totaled $45 thousand. The market price of a share of common stock on December 31, Year 2 was $30.
Required:
Compute the following for Year 2:
a. Return on total assets.
b. Working capital.
c. Current ratio.
d. Acid-test ratio.
e. Accounts receivable turnover.
f. Average collection period.
g. Inventory turnover.
h. Average sale period.
i. Times interest earned.
j. Debt-to-equity ratio.

Accepted Answer

a. Return on total assets = Adjusted net

Question 17

The ratio of total cash, marketable securities, accounts receivable, and short-term notes to current liabilities is:

Accepted Answer

A) the debt-to-equity ratio. 
B) the current ratio. 
C) the acid-test ratio. 
D) working capital. 
A) the debt-to-equity ratio. 
B) the current ratio. 
C) the acid-test ratio. 
D) working capital.

Question 18

Symons Corporation has provided the following financial data:     Dividends on common stock during Year 2 totaled $2,500. The market price of common stock at the end of Year 2 was $2.01 per share. The company's earnings per share for Year 2 is closest to:

Accepted Answer

A) $0.53 per share 
B) $11.54 per share 
C) $0.19 per share 
D) $0.27 per share 
A) $0.53 per share 
B) $11.54 per share 
C) $0.19 per share 
D) $0.27 per share

Question 19

Wyand Corporation's net operating income last year was $212,000; its interest expense was $26,000; its total stockholders' equity was $1,000,000; and its total liabilities were $370,000.
Required:
Compute the following for Year 2:
a. Times interest earned.
b. Debt-to-equity ratio.

Accepted Answer

a. Times interest earned = Net

Question 20

All other things the same, purchasing inventory would decrease the inventory turnover ratio.

Accepted Answer

A) True 
 B)False

Acquiring land by taking out a long-term mortgage will not affect the current ratio.

Kearin Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $8,000. The market price of common stock at the end of Year 2 was $2.02 per share. The company's return on equity for Year 2 is closest to:

The gross margin percentage is equal to:

Cameron Corporation had 50,000 shares of common stock issued and outstanding that it originally issued for $40 per share. The following information pertains to these shares: The total dividend on common stock for the year was $400,000. Cameron Corporation's dividend yield ratio for the year was:

Fayer Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $4,500. The market price of common stock at the end of Year 2 was $10.88 per share. The company's times interest earned for Year 2 is closest to:

Tweedle Corporation's most recent balance sheet and income statement appear below: The debt-to-equity ratio at the end of Year 2 is closest to:

A company's current ratio and an acid-test ratio are both greater than 1. Payment of an account payable would:

As the inventory turnover increases, the average sales period decreases.

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 accounts receivable turnover for Year 2 is closest to:

Guttery Corporation has provided the following financial data from its balance sheet: Sales on account in Year 2 totaled $1,450,000 and cost of goods sold totaled $900,000. The company's inventory turnover for Year 2 is closest to:

Steinkraus Corporation has provided the following data: Required: Compute the accounts receivable turnover for this year. Show your work!

Data from Dunshee Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,170 and the cost of goods sold was $730. The average sale period for Year 2 is closest to:

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:

The ratio of total cash, marketable securities, accounts receivable, and short-term notes to current liabilities is:

Symons Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $2,500. The market price of common stock at the end of Year 2 was $2.01 per share. The company's earnings per share for Year 2 is closest to:

Wyand Corporation's net operating income last year was $212,000; its interest expense was $26,000; its total stockholders' equity was $1,000,000; and its total liabilities were $370,000. Required: Compute the following for Year 2: a. Times interest earned. b. Debt-to-equity ratio.

All other things the same, purchasing inventory would decrease the inventory turnover ratio.

Managerial Accounting and Cost Concepts

Job-Order Costing

Activity-Based Costing

Process Costing

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Master Budgeting

Flexible Budgets, Standard Costs, and Variance Analysis

Performance Measurement in Decentralized Organizations

Differential Analysis: the Key to Decision Making

Capital Budgeting Decisions

Statement of Cash Flows

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Journal Entries to Record Variances

The Concept of Present Value

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

Filters

Exam 13: Financial Statement Analysis

Acquiring land by taking out a long-term mortgage will not affect the current ratio.

Kearin Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $8,000. The market price of common stock at the end of Year 2 was $2.02 per share. The company's return on equity for Year 2 is closest to:

The gross margin percentage is equal to:

Cameron Corporation had 50,000 shares of common stock issued and outstanding that it originally issued for $40 per share. The following information pertains to these shares: The total dividend on common stock for the year was $400,000. Cameron Corporation's dividend yield ratio for the year was:

Fayer Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $4,500. The market price of common stock at the end of Year 2 was $10.88 per share. The company's times interest earned for Year 2 is closest to:

Tweedle Corporation's most recent balance sheet and income statement appear below: The debt-to-equity ratio at the end of Year 2 is closest to:

A company's current ratio and an acid-test ratio are both greater than 1. Payment of an account payable would:

As the inventory turnover increases, the average sales period decreases.

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 accounts receivable turnover for Year 2 is closest to:

Guttery Corporation has provided the following financial data from its balance sheet: Sales on account in Year 2 totaled $1,450,000 and cost of goods sold totaled $900,000. The company's inventory turnover for Year 2 is closest to:

Steinkraus Corporation has provided the following data: Required: Compute the accounts receivable turnover for this year. Show your work!

Data from Dunshee Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,170 and the cost of goods sold was $730. The average sale period for Year 2 is closest to:

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:

The ratio of total cash, marketable securities, accounts receivable, and short-term notes to current liabilities is:

Symons Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $2,500. The market price of common stock at the end of Year 2 was $2.01 per share. The company's earnings per share for Year 2 is closest to:

Wyand Corporation's net operating income last year was $212,000; its interest expense was $26,000; its total stockholders' equity was $1,000,000; and its total liabilities were $370,000. Required: Compute the following for Year 2: a. Times interest earned. b. Debt-to-equity ratio.

All other things the same, purchasing inventory would decrease the inventory turnover ratio.

Managerial Accounting and Cost Concepts

Job-Order Costing

Activity-Based Costing

Process Costing

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Master Budgeting

Flexible Budgets, Standard Costs, and Variance Analysis

Performance Measurement in Decentralized Organizations

Differential Analysis: the Key to Decision Making

Capital Budgeting Decisions

Statement of Cash Flows

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Journal Entries to Record Variances

The Concept of Present Value

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

Filters