Question 1

The company's operating cycle for Year 2 is closest to:

Accepted Answer

A) 71.2 days 
B) 93.5 days 
C) 18.6 days 
D) 41.0 days 
A) 71.2 days 
B) 93.5 days 
C) 18.6 days 
D) 41.0 days B

Question 2

Arkin Corporation's total current assets are $290,000, its noncurrent assets are $520,000, its total current liabilities are $210,000, its long-term liabilities are $420,000, and its stockholders' equity is $180,000.
Required:
Compute the company's working capital.Show your work!

Accepted Answer

Working capital = Current assets - Current liabilities
= $290,000 - $210,000 = $80,000

Question 3

The company's price-earnings ratio is closest to:

Accepted Answer

A) 19.79 
B) 0.51 
C) 8.36 
D) 12.53 
A) 19.79 
B) 0.51 
C) 8.36 
D) 12.53 A

Question 4

Buying inventory in large lots to take advantage of quantity discounts can be responsible for a high inventory turnover ratio.

Accepted Answer

A) True 
 B)False

Question 5

The market price of Friden Company's common stock increased from $15 to $18.Earnings per share of common stock remained unchanged.The company's price-earnings ratio would:

Accepted Answer

A) increase. 
B) decrease. 
C) remain unchanged. 
D) impossible to determine. 
A) increase. 
B) decrease. 
C) remain unchanged. 
D) impossible to determine.

Question 6

Valdovinos Corporation has provided the following data:   The company's net profit margin percentage is closest to:

Accepted Answer

A) 38.3% 
B) 3.5% 
C) 1.3% 
D) 2.0% 
A) 38.3% 
B) 3.5% 
C) 1.3% 
D) 2.0%

Question 7

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 8

The company's debt-to-equity ratio at the end of Year 2 is closest to:

Accepted Answer

A) 0.29 
B) 0.38 
C) 0.23 
D) 0.64 
A) 0.29 
B) 0.38 
C) 0.23 
D) 0.64

Question 9

The inventory turnover for Year 2 is closest to:

Accepted Answer

A) 1.06 
B) 0.94 
C) 4.36 
D) 4.24 
A) 1.06 
B) 0.94 
C) 4.36 
D) 4.24

Question 10

Sand Company has an acid-test ratio of 0.8.Which of the following actions would improve the acid-test ratio?

Accepted Answer

A) Collect some accounts receivable. 
B) Acquire some inventory on account. 
C) Sell some equipment for cash. 
D) Use cash to pay off some accounts payable. 
A) Collect some accounts receivable. 
B) Acquire some inventory on account. 
C) Sell some equipment for cash. 
D) Use cash to pay off some accounts payable.

Question 11

The dividend payout ratio is equal to the dividend per share divided by the earnings per share.

Accepted Answer

A) True 
 B)False

Question 12

Data from Estrin Corporation's most recent balance sheet and income statement appear below:   The average sale period for this year is closest to:

Accepted Answer

A) 101 days 
B) 50 days 
C) 108 days 
D) 45 days 
A) 101 days 
B) 50 days 
C) 108 days 
D) 45 days

Question 13

As the accounts receivable turnover ratio decreases, the average collection period increases.

Accepted Answer

A) True 
 B)False

Question 14

Data from Yochem Corporation's most recent balance sheet appear below:   Required:
Compute the company's acid-test (quick)ratio.Show your work!

Accepted Answer

Acid-test ratio = Quick assets* ÷ Curren

Question 15

The company's operating cycle for Year 2 is closest to:

Accepted Answer

A) 10.4 days 
B) 79.5 days 
C) 141.3 days 
D) 72.2 days 
A) 10.4 days 
B) 79.5 days 
C) 141.3 days 
D) 72.2 days

Question 16

If a retailer sells a product whose contribution margin equals the gross margin percentage, the gross margin percentage will be unaffected by the transaction.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

Inventory turnover = Cost of g

Question 18

The company's return on equity for Year 2 is closest to:

Accepted Answer

A) 67.25% 
B) 2.27% 
C) 1.47% 
D) 4.19% 
A) 67.25% 
B) 2.27% 
C) 1.47% 
D) 4.19%

Question 19

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 20

A company could improve its acid-test ratio by selling some equipment it no longer needs for cash.

Accepted Answer

A) True 
 B)False

The company's operating cycle for Year 2 is closest to:

Arkin Corporation's total current assets are $290,000, its noncurrent assets are $520,000, its total current liabilities are $210,000, its long-term liabilities are $420,000, and its stockholders' equity is $180,000. Required: Compute the company's working capital.Show your work!

The company's price-earnings ratio is closest to:

Buying inventory in large lots to take advantage of quantity discounts can be responsible for a high inventory turnover ratio.

The market price of Friden Company's common stock increased from $15 to $18.Earnings per share of common stock remained unchanged.The company's price-earnings ratio would:

Valdovinos Corporation has provided the following data: The company's net profit margin percentage is closest to:

The company's inventory turnover for Year 2 is closest to:

The company's debt-to-equity ratio at the end of Year 2 is closest to:

The inventory turnover for Year 2 is closest to:

Sand Company has an acid-test ratio of 0.8.Which of the following actions would improve the acid-test ratio?

The dividend payout ratio is equal to the dividend per share divided by the earnings per share.

Data from Estrin Corporation's most recent balance sheet and income statement appear below: The average sale period for this year is closest to:

As the accounts receivable turnover ratio decreases, the average collection period increases.

Data from Yochem Corporation's most recent balance sheet appear below: Required: Compute the company's acid-test (quick)ratio.Show your work!

The company's operating cycle for Year 2 is closest to:

If a retailer sells a product whose contribution margin equals the gross margin percentage, the gross margin percentage will be unaffected by the transaction.

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

The company's return on equity for Year 2 is closest to:

A company could improve its acid-test ratio by selling some equipment it no longer needs for cash.

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Product Costs

Job-Order Costing: Cost Flows and External Reporting

Activity-Based Costing

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Master Budgeting

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Flexible Budgets Standard Costs and Variance Analysis

Statement of Cash Flows

Job-Order Costing: Cost Flows and External Reporting

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Flexible Budgets, Standard Costs, and Variance Analysis

Flexible Budgets, Standard Costs, and Variance Analysis

A Capital Budgeting Decisions

A Statement of Cash Flows

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Exam 14: Financial Statement Analysis

The company's operating cycle for Year 2 is closest to:

Arkin Corporation's total current assets are $290,000, its noncurrent assets are $520,000, its total current liabilities are $210,000, its long-term liabilities are $420,000, and its stockholders' equity is $180,000. Required: Compute the company's working capital.Show your work!

The company's price-earnings ratio is closest to:

Buying inventory in large lots to take advantage of quantity discounts can be responsible for a high inventory turnover ratio.

The market price of Friden Company's common stock increased from $15 to $18.Earnings per share of common stock remained unchanged.The company's price-earnings ratio would:

Valdovinos Corporation has provided the following data: The company's net profit margin percentage is closest to:

The company's inventory turnover for Year 2 is closest to:

The company's debt-to-equity ratio at the end of Year 2 is closest to:

The inventory turnover for Year 2 is closest to:

Sand Company has an acid-test ratio of 0.8.Which of the following actions would improve the acid-test ratio?

The dividend payout ratio is equal to the dividend per share divided by the earnings per share.

Data from Estrin Corporation's most recent balance sheet and income statement appear below: The average sale period for this year is closest to:

As the accounts receivable turnover ratio decreases, the average collection period increases.

Data from Yochem Corporation's most recent balance sheet appear below: Required: Compute the company's acid-test (quick)ratio.Show your work!

The company's operating cycle for Year 2 is closest to:

If a retailer sells a product whose contribution margin equals the gross margin percentage, the gross margin percentage will be unaffected by the transaction.

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

The company's return on equity for Year 2 is closest to:

A company could improve its acid-test ratio by selling some equipment it no longer needs for cash.

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Product Costs

Job-Order Costing: Cost Flows and External Reporting

Activity-Based Costing

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Master Budgeting

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Flexible Budgets Standard Costs and Variance Analysis

Statement of Cash Flows

Job-Order Costing: Cost Flows and External Reporting

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Flexible Budgets, Standard Costs, and Variance Analysis

Flexible Budgets, Standard Costs, and Variance Analysis

A Capital Budgeting Decisions

A Statement of Cash Flows

Filters