Nunn Company reported the following data: \[\begin{array} { | l | r | } \hline \text { Quick Assets } & \$ 55,000 \\ \hline \text { Current assets } & 150,000 \\ \hline \text { Total Liabilities } & 12,600 \\ \hline \text { Average net receivables } & 107,600 \\ \hline \text { Beginning inventory } & 38,000 \\ \hline \text { Long-term liabilities } & 200,000 \\ \hline \text { Net credit sales } & 126,000 \\ \hline \text { Cost of goods sold } & 84,000 \\ \hline \text { Ending inventory } & 46,000 \\ \hline \end{array}\] What was the current ratio?

A) 0.5 to 1 B) 0.75 to 1 C) 1.5 to 1 D) 2.5 to 1 A) 0.5 to 1 B) 0.75 to 1 C) 1.5 to 1 D) 2.5 to 1

For each of the following items indicate where you would most likely find the information A.Statement of financial position. B. Statement of earnings C. Statement of stockholders ' equity. D. Statement of cash flows. E. Notes to the financial statements. F. Auditor's report. G. Management's discussion and analysis. H. The information circular \[\begin{array} { | l | l | } \hline 1 . & \text { Details concerning the compensation of the CEO, CFO, and other key executive officers } \\ \hline 2 . & \text { Detailed information about the term, cost and maturity of debt. } \\ \hline 3 . & \text { Changes to the company's equity accounts. } \\ \hline 4 . & \text { An unqualified opinion. } \\ \hline 5 . & \text { Assets. } \\ \hline 6 . & \text { Attestation to the fairness of financial statements. } \\ \hline 7 . & \text { Discussion of the company's liquidity. } \\ \hline 8 . & \text { Cash inflows from investing activities. } \\ \hline 9 . & \text { A breakdown of sales increases into price and volume components. } \\ \hline 10 . & \text { Summary of significant accounting policies. } \\ \hline \end{array}\]

Please review the following information:

Exam 12: Statement Cash Flows

The records of Sage Company showed the following: Assets \ 230,000 Liabilities 130,000 Shareholders' equity* 100,000 Revenues \ 100,000 (81,000) Interest expense (2,000) Profit \ 17,000 *10,000 shares outstanding; current market price, $30 **Including income tax; income tax rate, 30% (1) The return on assets is \% (2) The return on equity is \%. (3) The financial leverage factor is \% (4) Is the financial leverage positive or negative?

(Essay)

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Question 21

The average days' supply in inventory is computed by dividing the days in the year by the ending balance of inventory.

(True/False)

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Question 22

Which of the following is an important measure of the average movement of goods "on and off the shelf" of a company?

(Multiple Choice)

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Question 23

Accounting methods, estimates, and assumptions used in preparing ﬁnancial statements are found

(Multiple Choice)

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Question 24

Financial leverage will always be which of the following?

(Multiple Choice)

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Question 25

The inventory turnover ratio is a measure of liquidity that focuses on eﬃcient use of inventory.

(True/False)

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Question 26

Which of the following statements about ROA is true?

(Multiple Choice)

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Question 27

P Co's earnings per share ratios were $1.31 and $1.36 respectively for 20X2 and 20X1. P Co's share was trading at $40 7/16 in 20X2 and $34 11/16 in 20X1. They paid cash dividends of $.515 per share in 20X2 and $.46 per share in 20X1. Total shareholders' equity was $6,401 million and $6,936 million in 20X2 and 20011 respectively. The common shares outstanding were approximately 1,519,000,000 and 1,570,000,000 in 20X2 and 20X1 respectively. -Calculate P Co's dividend payout for 20X2 and 20X1 respectively.

(Multiple Choice)

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Question 28

Hayes Company had an average age of accounts receivable of 25 days and net credit sales of $31,000. Assume a 365-day year. What was the amount of the average net receivables?

(Multiple Choice)

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Question 29

Nunn Company reported the following data: Quick Assets \ 55,000 Current assets 150,000 Total Liabilities 12,600 Average net receivables 107,600 Beginning inventory 38,000 Long-term liabilities 200,000 Net credit sales 126,000 Cost of goods sold 84,000 Ending inventory 46,000 What was the current ratio?

(Multiple Choice)

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Question 30

For each of the following items indicate where you would most likely find the information A.Statement of financial position. B. Statement of earnings C. Statement of stockholders ' equity. D. Statement of cash flows. E. Notes to the financial statements. F. Auditor's report. G. Management's discussion and analysis. H. The information circular 1. Details concerning the compensation of the CEO, CFO, and other key executive officers 2. Detailed information about the term, cost and maturity of debt. 3. Changes to the company's equity accounts. 4. An unqualified opinion. 5. Assets. 6. Attestation to the fairness of financial statements. 7. Discussion of the company's liquidity. 8. Cash inflows from investing activities. 9. A breakdown of sales increases into price and volume components. 10. Summary of significant accounting policies.

(Essay)

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Question 31

Which proﬁt measure is best for assessing how well a ﬁrm operates within their industry?

(Multiple Choice)

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Question 32

List four categories of accounting ratios described in the text.

(Short Answer)

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Question 33

A solvency ratio measures the earnings or operating success of a company for a given period of time.

(True/False)

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Question 34

The quick ratio of a company will always be less than or equal to the current ratio (working capital ratio).

(True/False)

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Question 35

Easy Company reported the following data at year-end: Total shareholders' equity \ 200,000 Current liabilities 75,000 Total assets 350,000 Current assets 80,000 Common stock (par \1 0) 125,000 (a) Compute the debt/equity ratio: (b) Compute shareholders' equity to total equities: (c) Compute creditors' equity to total equities: (d) Compute the current ratio:

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Question 36

Which of the following actions would be considered as contributing to low quality of ﬁnancial reporting?

(Multiple Choice)

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Question 37

A liquidity ratio measures the

(Multiple Choice)

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Question 38

-Calculate C Co's times interest earned ratio for 20X2 and 20X1 respectively.

(Multiple Choice)

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Question 39

At the end of 20X2, Storage Company reported 15,000 outstanding common shares. Total liabilities were $440,000 and total assets were $860,000. The company had no preferred shares. What was the book value per share of common share?

(Multiple Choice)

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Question 40

The average days' supply in inventory is computed by dividing the days in the year by the ending balance of inventory.

Which of the following is an important measure of the average movement of goods "on and off the shelf" of a company?

Accounting methods, estimates, and assumptions used in preparing ﬁnancial statements are found

Financial leverage will always be which of the following?

The inventory turnover ratio is a measure of liquidity that focuses on eﬃcient use of inventory.

Which of the following statements about ROA is true?

Hayes Company had an average age of accounts receivable of 25 days and net credit sales of $31,000. Assume a 365-day year. What was the amount of the average net receivables?

Which proﬁt measure is best for assessing how well a ﬁrm operates within their industry?

List four categories of accounting ratios described in the text.

A solvency ratio measures the earnings or operating success of a company for a given period of time.

The quick ratio of a company will always be less than or equal to the current ratio (working capital ratio).

Which of the following actions would be considered as contributing to low quality of ﬁnancial reporting?

A liquidity ratio measures the

-Calculate C Co's times interest earned ratio for 20X2 and 20X1 respectively.

At the end of 20X2, Storage Company reported 15,000 outstanding common shares. Total liabilities were $440,000 and total assets were $860,000. The company had no preferred shares. What was the book value per share of common share?

Business Decisions and Financial Accounting

The Balance Sheet

The Income Statement

Adjustments, Financial Statements, and Financial Results

Fraud, Internal Control, and Cash

Merchandising Operations and the Multistep Income Statement

Inventory and Cost of Goods Sold

Receivables, Bad Debt Expense, and Interest Revenue

Long-Lived Tangible and Intangible Assets

Liabilities

Stockholders Equity

Measuring and Evaluating Financial Performance

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