Question 1

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 2

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

Accepted Answer

A) True 
 B)False

Question 3

Data from Keniston Corporation's most recent balance sheet and income statement appear below: $\begin{array}{ll}
&\text { This Year } & \text { Last Year } \
\text {Accounts receivable. }&\$ 128,000 & \$ 114,000 \
\text {Inventory. }&\$228,000 & \$ 193,000 \
\text {Sales on account. }&\$813,000 & \
\text {Cost of goods sold }&\$ 597,000 &
\end{array}$ The average collection period for this year is closest to:

Accepted Answer

A) 39.1 days 
B) 45.1 days 
C) 54.3 days 
D) 57.5 days 
A) 39.1 days 
B) 45.1 days 
C) 54.3 days 
D) 57.5 days

Question 4

When computing the return on equity, retained earnings should be excluded from the average total stockholders' equity.

Accepted Answer

A) True 
 B)False

Question 5

Mars Corporation has provided the following data for Year 2:   The company's total stockholders' equity at the end of Year 2 amounted to $1,095,000 and at the end of Year 1 to $1,060,000. The company's return on equity for Year 2 is closest to:

Accepted Answer

A) 5.91% 
B) 7.40% 
C) 3.84% 
D) 71.20% 
A) 5.91% 
B) 7.40% 
C) 3.84% 
D) 71.20%

Question 6

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

Question 7

Fongeallaz Corporation's income statement for Year 2 appears below:   The company's total stockholders' equity at the end of Year 2 amounted to $841,000 and at the end of Year 1 to $810,000. The company's return on equity for Year 2 is closest to:

Accepted Answer

A) 64.40% 
B) 8.93% 
C) 6.75% 
D) 4.72% 
A) 64.40% 
B) 8.93% 
C) 6.75% 
D) 4.72%

Question 8

Financial statements for Maraby Corporation appear below:

-Maraby Corporation's average collection period for Year 2 was closest to:

Accepted Answer

A) 38.6 days 
B) 46.6 days 
C) 32.6 days 
D) 27.0 days 
A) 38.6 days 
B) 46.6 days 
C) 32.6 days 
D) 27.0 days

Question 9

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 book value per share at the end of Year 2 is closest to:

Accepted Answer

A) $17.94 per share 
B) $28.26 per share 
C) $0.19 per share 
D) $11.54 per share 
A) $17.94 per share 
B) $28.26 per share 
C) $0.19 per share 
D) $11.54 per share

Question 10

Sabino Corporation's total common stock was $500,000 at the end of both Year 2 and Year 1. The par value of common stock is $5 per share. The company's total stockholders' equity at the end of Year 2 amounted to $1,125,000 and at the end of Year 1 to $1,090,000. The company's total liabilities and stockholders' equity at the end of Year 2 amounted to $1,581,000 and at the end of Year 1 to $1,540,000. The company's retained earnings at the end of Year 2 amounted to $545,000 and at the end of Year 1 to $510,000. The company's net income in Year 2 was $39,000. 
-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 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 inventory turnover for Year 2 is closest to:

Accepted Answer

A) 6.54 
B) 5.67 
C) 6.07 
D) 0.87 
A) 6.54 
B) 5.67 
C) 6.07 
D) 0.87

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 in

Question 13

Walker Corporation has provided the following financial data:   The company's net operating income for Year 2 was $63,615 and its interest expense was $15,000.
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 times interest earned for Year 2?
e. What is the company's debt-to-equity ratio at the end of Year 2?
f. What is the company's equity multiplier at the end of Year 2?

Accepted Answer

a. Working capital = Current assets - Cu

Question 14

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 total assets for Year 2 is closest to:

Accepted Answer

A) 1.38% 
B) 2.18% 
C) 1.37% 
D) 2.19% 
A) 1.38% 
B) 2.18% 
C) 1.37% 
D) 2.19%

Question 15

Orem Corporation's current liabilities are $75,000, its long-term liabilities are $225,000, and its working capital is $100,000. If the corporation's debt-to-equity ratio is 0.30, total long-term assets must equal:

Accepted Answer

A) $1,000,000 
B) $1,300,000 
C) $1,125,000 
D) $1,225,000 
A) $1,000,000 
B) $1,300,000 
C) $1,125,000 
D) $1,225,000

Question 16

Sabino Corporation's total common stock was $500,000 at the end of both Year 2 and Year 1. The par value of common stock is $5 per share. The company's total stockholders' equity at the end of Year 2 amounted to $1,125,000 and at the end of Year 1 to $1,090,000. The company's total liabilities and stockholders' equity at the end of Year 2 amounted to $1,581,000 and at the end of Year 1 to $1,540,000. The company's retained earnings at the end of Year 2 amounted to $545,000 and at the end of Year 1 to $510,000. The company's net income in Year 2 was $39,000. 
-The company's current ratio at the end of Year 2 is closest to:

Accepted Answer

A) 0.83 
B) 1.96 
C) 0.45 
D) 0.37 
A) 0.83 
B) 1.96 
C) 0.45 
D) 0.37

Question 17

Turner Co. presently has a current ratio of 0.8. The company has been informed by its bank that it must improve its current ratio to qualify for a line of credit. Which of the following actions would improve the current ratio?

Accepted Answer

A) Use cash to pay off some current liabilities. 
B) Purchase additional marketable securities with cash. 
C) Acquire a parcel of land in exchange for common stock. 
D) Purchase additional inventory on credit. 
A) Use cash to pay off some current liabilities. 
B) Purchase additional marketable securities with cash. 
C) Acquire a parcel of land in exchange for common stock. 
D) Purchase additional inventory on credit.

Question 18

Financial statements for Narstad Corporation appear below:

-Narstad Corporation's times interest earned for Year 2 was closest to:

Accepted Answer

A) 11.0 
B) 10.0 
C) 18.0 
D) 7.0 
A) 11.0 
B) 10.0 
C) 18.0 
D) 7.0

Question 19

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 20

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 price-earnings ratio for Year 2 is closest to:

Accepted Answer

A) 19.00 
B) 12.53 
C) 7.46 
D) 1.52 
A) 19.00 
B) 12.53 
C) 7.46 
D) 1.52

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

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

When computing the return on equity, retained earnings should be excluded from the average total stockholders' equity.

Mars Corporation has provided the following data for Year 2: The company's total stockholders' equity at the end of Year 2 amounted to $1,095,000 and at the end of Year 1 to $1,060,000. The company's return on equity for Year 2 is closest to:

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

Fongeallaz Corporation's income statement for Year 2 appears below: The company's total stockholders' equity at the end of Year 2 amounted to $841,000 and at the end of Year 1 to $810,000. The company's return on equity for Year 2 is closest to:

Financial statements for Maraby Corporation appear below: -Maraby Corporation's average collection period for Year 2 was 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 book value per share at the end of 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 inventory turnover for Year 2 is closest to:

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 total assets for Year 2 is closest to:

Orem Corporation's current liabilities are $75,000, its long-term liabilities are $225,000, and its working capital is $100,000. If the corporation's debt-to-equity ratio is 0.30, total long-term assets must equal:

Turner Co. presently has a current ratio of 0.8. The company has been informed by its bank that it must improve its current ratio to qualify for a line of credit. Which of the following actions would improve the current ratio?

Financial statements for Narstad Corporation appear below: -Narstad Corporation's times interest earned for Year 2 was 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:

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 price-earnings ratio for Year 2 is closest to:

Master Budgeting

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Journal Entries to Record Variances

Performance Measurement in Decentralized Organizations

Transfer Pricing

Service Department Charges

Differential Analysis: the Key to Decision Making

Capital Budgeting Decisions

The Concept of Present Value

Income Taxes and the Net Present Value Method

Statement of Cash Flows

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

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Exam 15: Financial Statement Analysis

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

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

When computing the return on equity, retained earnings should be excluded from the average total stockholders' equity.

Mars Corporation has provided the following data for Year 2: The company's total stockholders' equity at the end of Year 2 amounted to $1,095,000 and at the end of Year 1 to $1,060,000. The company's return on equity for Year 2 is closest to:

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

Fongeallaz Corporation's income statement for Year 2 appears below: The company's total stockholders' equity at the end of Year 2 amounted to $841,000 and at the end of Year 1 to $810,000. The company's return on equity for Year 2 is closest to:

Financial statements for Maraby Corporation appear below: -Maraby Corporation's average collection period for Year 2 was 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 book value per share at the end of 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 inventory turnover for Year 2 is closest to:

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 total assets for Year 2 is closest to:

Orem Corporation's current liabilities are $75,000, its long-term liabilities are $225,000, and its working capital is $100,000. If the corporation's debt-to-equity ratio is 0.30, total long-term assets must equal:

Turner Co. presently has a current ratio of 0.8. The company has been informed by its bank that it must improve its current ratio to qualify for a line of credit. Which of the following actions would improve the current ratio?

Financial statements for Narstad Corporation appear below: -Narstad Corporation's times interest earned for Year 2 was 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:

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 price-earnings ratio for Year 2 is closest to:

Master Budgeting

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Journal Entries to Record Variances

Performance Measurement in Decentralized Organizations

Transfer Pricing

Service Department Charges

Differential Analysis: the Key to Decision Making

Capital Budgeting Decisions

The Concept of Present Value

Income Taxes and the Net Present Value Method

Statement of Cash Flows

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

Filters