Question 1

Steinkraus Corporation has provided the following data:   Required:
Compute the accounts receivable turnover for this year.Show your work!

Accepted Answer

Accounts receivable turnover =

Question 2

Narstad Corporation's debt-to-equity ratio at the end of Year 2 was closest to:

Accepted Answer

A) 0.50 
B) 0.36 
C) 0.19 
D) 0.17 
A) 0.50 
B) 0.36 
C) 0.19 
D) 0.17

Question 3

When computing the return on total assets, the interest expense is added back to net income to show what earnings would have been if the company had no debt.

Accepted Answer

A) True 
 B)False

Question 4

All other things the same, those who hold the company's debt (i.e., its creditors)would like a low debt-to-equity ratio to provide a buffer of protection.

Accepted Answer

A) True 
 B)False

Question 5

The average sale period for Year 2 is closest to:

Accepted Answer

A) 58.5 days 
B) 33.4 days 
C) 217.3 days 
D) 56.2 days 
A) 58.5 days 
B) 33.4 days 
C) 217.3 days 
D) 56.2 days

Question 6

The company's gross margin percentage for Year 2 is closest to:

Accepted Answer

A) 4.9% 
B) 61.4% 
C) 38.1% 
D) 2031.9% 
A) 4.9% 
B) 61.4% 
C) 38.1% 
D) 2031.9%

Question 7

Last year Truro Corporation purchased $800,000 of inventory.The cost of goods sold was $750,000 and the ending inventory was $125,000.The inventory turnover for the year was:

Accepted Answer

A) 6.0 
B) 7.5 
C) 6.4 
D) 8.0 
A) 6.0 
B) 7.5 
C) 6.4 
D) 8.0

Question 8

The working capital at the end of Year 2 is:

Accepted Answer

A) $600 
B) $1,000 
C) $880 
D) $240 
A) $600 
B) $1,000 
C) $880 
D) $240

Question 9

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

Question 10

Maraby Corporation's working capital (in thousands of dollars)at the end of Year 2 was closest to:

Accepted Answer

A) $260 
B) $620 
C) $360 
D) $990 
A) $260 
B) $620 
C) $360 
D) $990

Question 11

Medina Corporation has provided the following financial data:     Dividends on common stock during Year 2 totaled $2,000.The market price of common stock at the end of Year 2 was $1.49 per share.
Required:
a.What is the company's times interest earned ratio for Year 2?
b.What is the company's debt-to-equity ratio at the end of Year 2?
c.What is the company's equity multiplier at the end of Year 2?
d.What is the company's net profit margin percentage for Year 2?
e.What is the company's gross margin percentage for Year 2?
f.What is the company's return on total assets for Year 2?
g.What is the company's return on equity for Year 2?
h.What is the company's earnings per share for Year 2?
i.What is the company's price-earnings ratio for Year 2?
j.What is the company's dividend payout ratio for Year 2?
k.What is the company's dividend yield ratio for Year 2?
l.What is the company's book value per share at the end of Year 2?

Accepted Answer

a.Times interest earned = Earnings befor

Question 12

The company's working capital at the end of Year 2 is:

Accepted Answer

A) $732,000 
B) $831,000 
C) $289,000 
D) $590,000 
A) $732,000 
B) $831,000 
C) $289,000 
D) $590,000

Question 13

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

Accepted Answer

A) 1.17 
B) 11.04 
C) 0.09 
D) 0.85 
A) 1.17 
B) 11.04 
C) 0.09 
D) 0.85

Question 14

For Year 2, Etzkorn Corporation's sales were $1,480,000, its gross margin was $580,000, its net operating income was $63,714, its net income before taxes was $42,714, and its net income was $29,900.The company's total stockholders' equity at the end of Year 2 amounted to $829,000 and at the end of Year 1 to $800,000.The company's return on equity for Year 2 is closest to:

Accepted Answer

A) 3.67% 
B) 60.16% 
C) 5.24% 
D) 7.82% 
A) 3.67% 
B) 60.16% 
C) 5.24% 
D) 7.82%

Question 15

A portion of Lapore Corporation's Balance Sheet appears below:   The company's debt-to-equity ratio at the end of Year 2 is closest to:

Accepted Answer

A) 0.60 
B) 0.37 
C) 0.39 
D) 0.27 
A) 0.60 
B) 0.37 
C) 0.39 
D) 0.27

Question 16

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 17

Data from Ben Corporation's most recent balance sheet and income statement appear below:   Required:
Compute the average sale period for this year:

Accepted Answer

Average sale period = 365 days ÷ Invento

Question 18

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 19

The company's average sale period for Year 2 is closest to:

Accepted Answer

A) 91.9 days 
B) 48.9 days 
C) 90.1 days 
D) 198.1 days 
A) 91.9 days 
B) 48.9 days 
C) 90.1 days 
D) 198.1 days

Question 20

The current ratio at the end of Year 2 is closest to:

Accepted Answer

A) 0.32 
B) 0.38 
C) 1.25 
D) 1.20 
A) 0.32 
B) 0.38 
C) 1.25 
D) 1.20

Steinkraus Corporation has provided the following data: Required: Compute the accounts receivable turnover for this year.Show your work!

Narstad Corporation's debt-to-equity ratio at the end of Year 2 was closest to:

When computing the return on total assets, the interest expense is added back to net income to show what earnings would have been if the company had no debt.

All other things the same, those who hold the company's debt (i.e., its creditors)would like a low debt-to-equity ratio to provide a buffer of protection.

The average sale period for Year 2 is closest to:

The company's gross margin percentage for Year 2 is closest to:

Last year Truro Corporation purchased $800,000 of inventory.The cost of goods sold was $750,000 and the ending inventory was $125,000.The inventory turnover for the year was:

The working capital at the end of Year 2 is:

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.

Maraby Corporation's working capital (in thousands of dollars)at the end of Year 2 was closest to:

The company's working capital at the end of Year 2 is:

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

A portion of Lapore Corporation's Balance Sheet appears below: The company's debt-to-equity ratio at the end of 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.

Data from Ben Corporation's most recent balance sheet and income statement appear below: Required: Compute the average sale period for this year:

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

The company's average sale period for Year 2 is closest to:

The current ratio at the end of Year 2 is closest to:

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

Exam 14: Financial Statement Analysis

Steinkraus Corporation has provided the following data: Required: Compute the accounts receivable turnover for this year.Show your work!

Narstad Corporation's debt-to-equity ratio at the end of Year 2 was closest to:

When computing the return on total assets, the interest expense is added back to net income to show what earnings would have been if the company had no debt.

All other things the same, those who hold the company's debt (i.e., its creditors)would like a low debt-to-equity ratio to provide a buffer of protection.

The average sale period for Year 2 is closest to:

The company's gross margin percentage for Year 2 is closest to:

Last year Truro Corporation purchased $800,000 of inventory.The cost of goods sold was $750,000 and the ending inventory was $125,000.The inventory turnover for the year was:

The working capital at the end of Year 2 is:

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.

Maraby Corporation's working capital (in thousands of dollars)at the end of Year 2 was closest to:

The company's working capital at the end of Year 2 is:

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

A portion of Lapore Corporation's Balance Sheet appears below: The company's debt-to-equity ratio at the end of 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.

Data from Ben Corporation's most recent balance sheet and income statement appear below: Required: Compute the average sale period for this year:

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

The company's average sale period for Year 2 is closest to:

The current ratio at the end of Year 2 is closest to:

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