Question 1

Complete a trend analysis for sales (round to nearest whole percent and use 2010 as the base year).

Accepted Answer

A. 100%; B. 75% ($45

Question 2

From 2013 to 2014, accounts receivable increased from $4,000 to $4,800. The percent increase is:

Accepted Answer

A) 120% 
B) 16 2/3% 
C) 20% 
D) 55% 
E) None of these 
A) 120% 
B) 16 2/3% 
C) 20% 
D) 55% 
E) None of these

Question 3

Complete the partial comparative balance sheet. Round to nearest hundredth percent.

Accepted Answer

A. $10,500; 
B. $13,500;
 C. 57.14% ($6,

Question 4

Cost of merchandise sold is equal to beginning inventory minus net purchases minus ending inventory.

Accepted Answer

A) True 
 B)False

Question 5

The cost of merchandise sold from the following data is as follows: sales $80,000, beginning inventory $5,000, purchases $21,800, purchase discounts $790, ending inventory $5,100.

Accepted Answer

A) $21,560 
B) $20,190 
C) $20,910 
D) $21,650 
E) None of these 
A) $21,560 
B) $20,190 
C) $20,910 
D) $21,650 
E) None of these

Question 6

Given gross sales of $40,000 and sales returns and allowances of $6,000, what are the net sales?

Accepted Answer

A) $50,000 
B) $46,000 
C) $34,500 
D) $34,000 
E) None of these 
A) $50,000 
B) $46,000 
C) $34,500 
D) $34,000 
E) None of these

Question 7

Complete the following average day's collection:
Account receivables = $66,000; net sales = $360,000 (assume 360 days)

Accepted Answer

The answer of Complete the following average day's collection:
Account receivables...

Question 8

Could we speed up our collections? could be one question raised about the average day's collection ratio.

Accepted Answer

A) True 
 B)False

Question 9

From the following information, could you help Bill calculate his cost of merchandise sold?

Accepted Answer

$2,900
Cost of goods

Question 10

The computer is the only tool needed in monitoring a business's financial condition.

Accepted Answer

A) True 
 B)False

Question 11

The asset turnover is gross sales divided by total assets.

Accepted Answer

A) True 
 B)False

Question 12

Bill's Pizza has an asset turnover of 3.5. The total assets of Bill's were $95,000. The net sales of Bill's Pizza is:

Accepted Answer

A) $27,142.85 
B) $332,500.00 
C) $271,428.50 
D) $33,250.00 
E) None of these 
A) $27,142.85 
B) $332,500.00 
C) $271,428.50 
D) $33,250.00 
E) None of these

Question 13

Complete:

Accepted Answer

The answer of Complete:
 ...

Question 14

In horizontal analysis the old year is the base.

Accepted Answer

A) True 
 B)False

Question 15

As the accountant of Roe Hairdresser, you have been asked to prepare an income statement from the following data for the month ended June 2014:

Accepted Answer

The answer of As the accountant of Roe Hairdresser, you...

Question 16

Net purchases are the cost of purchases minus purchase discounts minus purchase returns and allowances.

Accepted Answer

A) True 
 B)False

Question 17

Solve for (A) current ratio, (B) acid test (quick), (C) average day's collection (D) asset turnover, and (E) profit margin on sales. Round to nearest hundredth or hundredth percent as needed.

Accepted Answer

A. 1.31; B

Question 18

Mel King has asked you to prepare a classified balance sheet for Pad Co. as of December 31, 2014. Ending merchandise inventory was $1,800:

Accepted Answer

The answer of Mel King has asked you to prepare...

Question 19

A comparative statement contains data for less than two successive accounting periods.

Accepted Answer

A) True 
 B)False

Question 20

Jay Corporation has earned $175,900 after tax. The accountant calculated the return on equity as 12.5%. Jay Corporation's stockholders' equity to the nearest dollar is:

Accepted Answer

A) $140,720 
B) $14,720 
C) $1,407,200 
D) $140,720,000 
E) None of these 
A) $140,720 
B) $14,720 
C) $1,407,200 
D) $140,720,000 
E) None of these

Exam 16: How to Read, Analyze, and Interpret Financial Reports

Complete a trend analysis for sales (round to nearest whole percent and use 2010 as the base year).

From 2013 to 2014, accounts receivable increased from $4,000 to $4,800. The percent increase is:

Complete the partial comparative balance sheet. Round to nearest hundredth percent.

Cost of merchandise sold is equal to beginning inventory minus net purchases minus ending inventory.

The cost of merchandise sold from the following data is as follows: sales $80,000, beginning inventory $5,000, purchases $21,800, purchase discounts $790, ending inventory $5,100.

Given gross sales of $40,000 and sales returns and allowances of $6,000, what are the net sales?

Complete the following average day's collection: Account receivables = $66,000; net sales = $360,000 (assume 360 days)

Could we speed up our collections? could be one question raised about the average day's collection ratio.

From the following information, could you help Bill calculate his cost of merchandise sold?

The computer is the only tool needed in monitoring a business's financial condition.

The asset turnover is gross sales divided by total assets.

Bill's Pizza has an asset turnover of 3.5. The total assets of Bill's were $95,000. The net sales of Bill's Pizza is:

Complete:

In horizontal analysis the old year is the base.

As the accountant of Roe Hairdresser, you have been asked to prepare an income statement from the following data for the month ended June 2014:

Net purchases are the cost of purchases minus purchase discounts minus purchase returns and allowances.

Solve for (A) current ratio, (B) acid test (quick), (C) average day's collection (D) asset turnover, and (E) profit margin on sales. Round to nearest hundredth or hundredth percent as needed.

Mel King has asked you to prepare a classified balance sheet for Pad Co. as of December 31, 2014. Ending merchandise inventory was $1,800:

A comparative statement contains data for less than two successive accounting periods.

Jay Corporation has earned $175,900 after tax. The accountant calculated the return on equity as 12.5%. Jay Corporation's stockholders' equity to the nearest dollar is:

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