Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

The company's earnings per share for Year 2 is closest to:

Accepted Answer

A) $0.31 per share 
B) $0.47 per share 
C) $0.79 per share 
D) $3.88 per share 
A) $0.31 per share 
B) $0.47 per share 
C) $0.79 per share 
D) $3.88 per share

Question 3

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

Accepted Answer

A) 70.1 days 
B) 1.1 days 
C) 72.1 days 
D) 1.0 days 
A) 70.1 days 
B) 1.1 days 
C) 72.1 days 
D) 1.0 days

Question 4

The times interest earned ratio of Whitney Corporation is 3.0.The interest expense for the year is $21,000, and the corporation's tax rate is 40%.The corporation's after-tax net income must be:

Accepted Answer

A) $63,000 
B) $25,200 
C) $30,000 
D) $42,000 
A) $63,000 
B) $25,200 
C) $30,000 
D) $42,000

Question 5

The inventory turnover for Year 2 is closest to:

Accepted Answer

A) 3.75 
B) 1.20 
C) 4.09 
D) 0.83 
A) 3.75 
B) 1.20 
C) 4.09 
D) 0.83

Question 6

The company's book value per share at the end of Year 2 is closest to:

Accepted Answer

A) $0.38 per share 
B) $8.18 per share 
C) $18.08 per share 
D) $13.93 per share 
A) $0.38 per share 
B) $8.18 per share 
C) $18.08 per share 
D) $13.93 per share

Question 7

Financial statements for Praeger Corporation appear below:     Dividends during Year 2 totaled $45 thousand.The market price of a share of common stock on December 31, Year 2 was $30.
Required:
Compute the following for Year 2:
a.Return on total assets.
b.Working capital.
c.Current ratio.
d.Acid-test (quick)ratio.
e.Accounts receivable turnover.
f.Average collection period.
g.Inventory turnover.
h.Average sale period.
i.Times interest earned ratio.
j.Debt-to-equity ratio.

Accepted Answer

a.Return on total assets = Adjusted net

Question 8

The company's current ratio is closest to:

Accepted Answer

A) 0.47 
B) 0.40 
C) 0.19 
D) 4.25 
A) 0.47 
B) 0.40 
C) 0.19 
D) 4.25

Question 9

All other things the same, purchasing inventory would decrease the inventory turnover ratio.

Accepted Answer

A) True 
 B)False

Question 10

Neiger Corporation has provided the following financial data:     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 ratio 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 - Cur

Question 11

Jaquez Corporation has provided the following financial data:     Dividends on common stock during Year 2 totaled $10,000.The market price of common stock at the end of Year 2 was $5.45 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 total asset turnover for Year 2 is closest to:

Accepted Answer

A) 1.25 
B) 0.80 
C) 6.57 
D) 0.15 
A) 1.25 
B) 0.80 
C) 6.57 
D) 0.15

Question 13

The working capital at the end of Year 2 is:

Accepted Answer

A) $270 
B) $500 
C) $770 
D) $740 
A) $270 
B) $500 
C) $770 
D) $740

Question 14

Pribyl Corporation has provided the following financial data:     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?

Accepted Answer

a.Net profit margin percentage = Net inc

Question 15

Wegener Corporation's most recent balance sheet and income statement appear below:     Required:
Compute the following for Year 2:
a.Working capital.
b.Current ratio.
c.Acid-test (quick)ratio.
d.Accounts receivable turnover.
e.Average collection period.
f.Inventory turnover.
g.Average sale period.

Accepted Answer

a.Working capital = Current assets - Cur

Question 16

Sidell Corporation's most recent balance sheet and income statement appear below:     Required:
Compute the following for Year 2:
a.Times interest earned ratio.
b.Debt-to-equity ratio.

Accepted Answer

a.Times interest earned = Earnings befor

Question 17

The working capital at the end of Year 2 is:

Accepted Answer

A) $260 thousand 
B) $680 thousand 
C) $700 thousand 
D) $540 thousand 
A) $260 thousand 
B) $680 thousand 
C) $700 thousand 
D) $540 thousand

Question 18

Spomer Corporation's inventory at the end of Year 2 was $114,000 and its inventory at the end of Year 1 was $120,000.Cost of goods sold amounted to $710,000 in Year 2.The company's inventory turnover for Year 2 is closest to:

Accepted Answer

A) 5.92 
B) 1.05 
C) 6.07 
D) 6.23 
A) 5.92 
B) 1.05 
C) 6.07 
D) 6.23

Question 19

Rough Corporation's total assets at the end of Year 2 were $1,247,000 and at the end of Year 1 were $1,270,000.The company's total liabilities at the end of Year 2 were $512,000 and at the end of Year 1 were $550,000.The company's total stockholders' equity at the end of Year 2 was $735,000 and at the end of Year 1 was $720,000.The company's equity multiplier is closest to:

Accepted Answer

A) 1.73 
B) 1.44 
C) 0.69 
D) 0.58 
A) 1.73 
B) 1.44 
C) 0.69 
D) 0.58

Question 20

Wittels Corporation has provided the following data:   In Year 2, the company's net operating income was $42,571, its net income before taxes was $21,571, and its net income was $15,100.The company's equity multiplier is closest to:

Accepted Answer

A) 1.14 
B) 0.53 
C) 0.88 
D) 1.87 
A) 1.14 
B) 0.53 
C) 0.88 
D) 1.87

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

The company's earnings per share for Year 2 is closest to:

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

The times interest earned ratio of Whitney Corporation is 3.0.The interest expense for the year is $21,000, and the corporation's tax rate is 40%.The corporation's after-tax net income must be:

The inventory turnover for Year 2 is closest to:

The company's book value per share at the end of Year 2 is closest to:

The company's current ratio is closest to:

All other things the same, purchasing inventory would decrease the inventory turnover ratio.

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

The working capital at the end of Year 2 is:

Wegener Corporation's most recent balance sheet and income statement appear below: Required: Compute the following for Year 2: a.Working capital. b.Current ratio. c.Acid-test (quick)ratio. d.Accounts receivable turnover. e.Average collection period. f.Inventory turnover. g.Average sale period.

Sidell Corporation's most recent balance sheet and income statement appear below: Required: Compute the following for Year 2: a.Times interest earned ratio. b.Debt-to-equity ratio.

The working capital at the end of Year 2 is:

Spomer Corporation's inventory at the end of Year 2 was $114,000 and its inventory at the end of Year 1 was $120,000.Cost of goods sold amounted to $710,000 in Year 2.The company's inventory turnover for Year 2 is closest to:

Wittels Corporation has provided the following data: In Year 2, the company's net operating income was $42,571, its net income before taxes was $21,571, and its net income was $15,100.The company's equity multiplier 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

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Exam 14: Financial Statement Analysis

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

The company's earnings per share for Year 2 is closest to:

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

The times interest earned ratio of Whitney Corporation is 3.0.The interest expense for the year is $21,000, and the corporation's tax rate is 40%.The corporation's after-tax net income must be:

The inventory turnover for Year 2 is closest to:

The company's book value per share at the end of Year 2 is closest to:

The company's current ratio is closest to:

All other things the same, purchasing inventory would decrease the inventory turnover ratio.

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

The working capital at the end of Year 2 is:

Wegener Corporation's most recent balance sheet and income statement appear below: Required: Compute the following for Year 2: a.Working capital. b.Current ratio. c.Acid-test (quick)ratio. d.Accounts receivable turnover. e.Average collection period. f.Inventory turnover. g.Average sale period.

Sidell Corporation's most recent balance sheet and income statement appear below: Required: Compute the following for Year 2: a.Times interest earned ratio. b.Debt-to-equity ratio.

The working capital at the end of Year 2 is:

Spomer Corporation's inventory at the end of Year 2 was $114,000 and its inventory at the end of Year 1 was $120,000.Cost of goods sold amounted to $710,000 in Year 2.The company's inventory turnover for Year 2 is closest to:

Wittels Corporation has provided the following data: In Year 2, the company's net operating income was $42,571, its net income before taxes was $21,571, and its net income was $15,100.The company's equity multiplier 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