Question 1

Smay Corporation has provided the following data:   The accounts receivable turnover for this year is closest to:

Accepted Answer

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

Question 2

Dratif Corporation's working capital is $33,000 and its current liabilities are $80,000.The corporation's current ratio is closest to:

Accepted Answer

A) 1.41 
B) 0.59 
C) 3.42 
D) 0.41 
A) 1.41 
B) 0.59 
C) 3.42 
D) 0.41 A

Question 3

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.

Accepted Answer

A) True 
 B)False  False

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 return on total assets for Year 2 is closest to:

Accepted Answer

A) 2.75% 
B) 1.64% 
C) 1.65% 
D) 2.76% 
A) 2.75% 
B) 1.64% 
C) 1.65% 
D) 2.76%

Question 5

Sidell Corporation's most recent balance sheet and income statement appear below:     Required:
Compute the following for Year 2:
a.Times interest earned.
b.Debt-to-equity ratio.

Accepted Answer

a.Times interest earned = Net

Question 6

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 (age of receivables)for Year 2?
f.What is the company's inventory turnover for Year 2?
g.What is the company's average sale period (turnover in days)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 7

Dilisio Corporation has provided the following data:   Required:
Compute the inventory turnover for this year:

Accepted Answer

Inventory turnover = Cost of g

Question 8

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:

Accepted Answer

A) $70,000 
B) $100,000 
C) $49,000 
D) $125,000 
A) $70,000 
B) $100,000 
C) $49,000 
D) $125,000

Question 9

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 10

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 return on equity for Year 2 is closest to:

Accepted Answer

A) 3.02% 
B) 3.77% 
C) 2.11% 
D) 79.14% 
A) 3.02% 
B) 3.77% 
C) 2.11% 
D) 79.14%

Question 11

Mahoe Corporation has provided the following financial data:     Dividends on common stock during Year 2 totaled $500.The market price of common stock at the end of Year 2 was $8.06 per share. The company's operating cycle for Year 2 is closest to:

Accepted Answer

A) 70.8 days 
B) 10.0 days 
C) 87.7 days 
D) 148.5 days 
A) 70.8 days 
B) 10.0 days 
C) 87.7 days 
D) 148.5 days

Question 12

Straton Corporation has provided the following financial data:     Dividends on common stock during Year 2 totaled $2,100.The market price of common stock at the end of Year 2 was $5.56 per share.
Required:
a.What is the company's net profit margin percentage for Year 2?
b.What is the company's gross margin percentage for Year 2?
c.What is the company's return on total assets for Year 2?
d.What is the company's return on equity for Year 2?
e.What is the company's earnings per share for Year 2?
f.What is the company's price-earnings ratio for Year 2?
g.What is the company's dividend payout ratio for Year 2?
h.What is the company's dividend yield ratio for Year 2?
i.What is the company's book value per share at the end of Year 2?

Accepted Answer

a.Net profit margin percentage = Net inc

Question 13

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 price-earnings ratio for Year 2 is closest to:

Accepted Answer

A) 3.79 
B) 10.58 
C) 0.17 
D) 7.44 
A) 3.79 
B) 10.58 
C) 0.17 
D) 7.44

Question 14

M.K.Berry is the managing director of CE Ltd.a small,family-owned company which manufactures cutlery.His company belongs to a trade association which publishes a monthly magazine.The latest issue of the magazine contains a very brief article based on the analysis of the accounting statements published by the 40 companies which manufacture this type of product.The article contains the following table:   CE Ltd's latest financial statements are as follows:   The country in which the company operates has no corporate income tax.No dividends were paid during the year.All sales are on account.   Required:
a.Calculate each of the ratios listed in the magazine article for this year for CE,and comment briefly on CE Ltd's performance in comparison to the industrial averages.
b.Explain why it could be misleading to compare CE Ltd's ratios with those taken from the article.

Accepted Answer

A.
Return on equity = Net income ÷ Avera

Question 15

Klein Corporation has provided the following data:   The company's equity multiplier is closest to:

Accepted Answer

A) 1.24 
B) 0.56 
C) 1.80 
D) 0.81 
A) 1.24 
B) 0.56 
C) 1.80 
D) 0.81

Question 16

Last year Javer Corporation had a net income of $200,000,income tax expense of $74,000,and interest expense of $20,000.The corporation's times interest earned was closest to:

Accepted Answer

A) 10.0 
B) 11.0 
C) 5.3 
D) 14.7 
A) 10.0 
B) 11.0 
C) 5.3 
D) 14.7

Question 17

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 18

Tweedle Corporation's most recent balance sheet and income statement appear below:     The times interest earned for Year 2 is closest to:

Accepted Answer

A) 6.40 
B) 9.16 
C) 14.51 
D) 10.16 
A) 6.40 
B) 9.16 
C) 14.51 
D) 10.16

Question 19

When fixed costs are included in the cost of goods sold,the gross margin percentage should increase and decrease with sales volume.

Accepted Answer

A) True 
 B)False

Question 20

Mayfield Corporation has provided the following financial data:   The company's acid-test (quick)ratio is closest to:

Accepted Answer

A) 1.90 
B) 1.85 
C) 2.65 
D) 1.81 
A) 1.90 
B) 1.85 
C) 2.65 
D) 1.81

Smay Corporation has provided the following data: The accounts receivable turnover for this year is closest to:

Dratif Corporation's working capital is $33,000 and its current liabilities are $80,000.The corporation's current ratio 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.

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 total assets for Year 2 is closest to:

Sidell Corporation's most recent balance sheet and income statement appear below: Required: Compute the following for Year 2: a.Times interest earned. b.Debt-to-equity ratio.

Dilisio Corporation has provided the following data: Required: Compute the inventory turnover for this year:

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:

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

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 return on equity for Year 2 is closest to:

Mahoe Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $500.The market price of common stock at the end of Year 2 was $8.06 per share. The company's operating cycle for Year 2 is closest to:

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 price-earnings ratio for Year 2 is closest to:

Klein Corporation has provided the following data: The company's equity multiplier is closest to:

Last year Javer Corporation had a net income of $200,000,income tax expense of $74,000,and interest expense of $20,000.The corporation's times interest earned was closest to:

The gross margin percentage is equal to:

Tweedle Corporation's most recent balance sheet and income statement appear below: The times interest earned for Year 2 is closest to:

When fixed costs are included in the cost of goods sold,the gross margin percentage should increase and decrease with sales volume.

Mayfield Corporation has provided the following financial data: The company's acid-test (quick)ratio 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

Supplement: Process Costing Using the Fifo Method

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Activity-Based Costing: a Tool to Aid Decision Making

Master Budgeting

Flexible Budgets and Performance Analysis

Differential Analysis: The Key to Decision Making

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Journal Entries to Record Variance

The Concept of Present Value

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

Filters

Exam 14: Capital Budgeting Decisions

Smay Corporation has provided the following data: The accounts receivable turnover for this year is closest to:

Dratif Corporation's working capital is $33,000 and its current liabilities are $80,000.The corporation's current ratio 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.

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 total assets for Year 2 is closest to:

Sidell Corporation's most recent balance sheet and income statement appear below: Required: Compute the following for Year 2: a.Times interest earned. b.Debt-to-equity ratio.

Dilisio Corporation has provided the following data: Required: Compute the inventory turnover for this year:

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:

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

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 return on equity for Year 2 is closest to:

Mahoe Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $500.The market price of common stock at the end of Year 2 was $8.06 per share. The company's operating cycle for Year 2 is closest to:

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 price-earnings ratio for Year 2 is closest to:

Klein Corporation has provided the following data: The company's equity multiplier is closest to:

Last year Javer Corporation had a net income of $200,000,income tax expense of $74,000,and interest expense of $20,000.The corporation's times interest earned was closest to:

The gross margin percentage is equal to:

Tweedle Corporation's most recent balance sheet and income statement appear below: The times interest earned for Year 2 is closest to:

When fixed costs are included in the cost of goods sold,the gross margin percentage should increase and decrease with sales volume.

Mayfield Corporation has provided the following financial data: The company's acid-test (quick)ratio 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

Supplement: Process Costing Using the Fifo Method

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Activity-Based Costing: a Tool to Aid Decision Making

Master Budgeting

Flexible Budgets and Performance Analysis

Differential Analysis: The Key to Decision Making

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Journal Entries to Record Variance

The Concept of Present Value

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

Filters