Question 1

Younis Corporation's income statement appears below:   The company's net profit margin percentage is closest to:

Accepted Answer

A) 37.1% 
B) 3.5% 
C) 2.4% 
D) 1.7% 
A) 37.1% 
B) 3.5% 
C) 2.4% 
D) 1.7%

Question 2

The times interest earned ratio for Year 2 is closest to:

Accepted Answer

A) 6.40 
B) 9.16 
C) 14.51 
D) 10.16 
A) 6.40 
B) 9.16 
C) 14.51 
D) 10.16

Question 3

As the inventory turnover increases, the average sales period decreases.

Accepted Answer

A) True 
 B)False

Question 4

The formula for total asset turnover is: Total asset turnover = Total assets ÷ Total stockholders' equity.

Accepted Answer

A) True 
 B)False

Question 5

The company's earnings per share is closest to:

Accepted Answer

A) $7.37 per share 
B) $0.45 per share 
C) $0.30 per share 
D) $0.19 per share 
A) $7.37 per share 
B) $0.45 per share 
C) $0.30 per share 
D) $0.19 per share

Question 6

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

Accepted Answer

A) 0.45 
B) 1.93 
C) 0.44 
D) 1.04 
A) 0.45 
B) 1.93 
C) 0.44 
D) 1.04

Question 7

The average sale period for Year 2 is closest to:

Accepted Answer

A) 63.0 days 
B) 89.2 days 
C) 236.3 days 
D) 97.3 days 
A) 63.0 days 
B) 89.2 days 
C) 236.3 days 
D) 97.3 days

Question 8

Gambino Corporation has provided the following financial data:     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?

Accepted Answer

a.Times interest earned = Earnings befor

Question 9

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

Accepted Answer

A) 1.77% 
B) 2.46% 
C) 1.80% 
D) 2.42% 
A) 1.77% 
B) 2.46% 
C) 1.80% 
D) 2.42%

Question 10

Groeneweg Corporation has provided the following data:   Dividends on common stock during Year 2 totaled $4,500.The market price of common stock at the end of Year 2 was $9.45 per share.The company's dividend payout ratio for Year 2 is closest to:

Accepted Answer

A) 8.7% 
B) 13.4% 
C) 4.5% 
D) 1.0% 
A) 8.7% 
B) 13.4% 
C) 4.5% 
D) 1.0%

Question 11

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

Accepted Answer

A) 1.38% 
B) 2.18% 
C) 1.37% 
D) 2.19% 
A) 1.38% 
B) 2.18% 
C) 1.37% 
D) 2.19%

Question 12

Maraby Corporation's inventory turnover for Year 2 was closest to:

Accepted Answer

A) 11.2 
B) 7.8 
C) 9.4 
D) 13.5 
A) 11.2 
B) 7.8 
C) 9.4 
D) 13.5

Question 13

The formula for the times interest earned ratio is: Times interest earned = Earnings before interest expense and income taxes ÷ Interest expense.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) $0.53 per share 
B) $11.54 per share 
C) $0.19 per share 
D) $0.27 per share 
A) $0.53 per share 
B) $11.54 per share 
C) $0.19 per share 
D) $0.27 per share

Question 15

All other things the same, if long-term debt is exchanged for short-term debt, the debt-to-equity ratio will be unchanged.

Accepted Answer

A) True 
 B)False

Question 16

Braverman Corporation's net income last year was $75,000 and its interest expense was $10,000.Total assets at the beginning of the year were $650,000 and total assets at the end of the year were $610,000.The corporation's income tax rate was 30%.The corporation's return on total assets for the year was closest to:

Accepted Answer

A) 13.5% 
B) 12.4% 
C) 13.0% 
D) 11.9% 
A) 13.5% 
B) 12.4% 
C) 13.0% 
D) 11.9%

Question 17

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

Accepted Answer

A) 39.1 days 
B) 45.1 days 
C) 54.3 days 
D) 57.5 days 
A) 39.1 days 
B) 45.1 days 
C) 54.3 days 
D) 57.5 days

Question 18

The Seabury Corporation has a current ratio of 3.5 and an acid-test ratio of 2.8.The corporation's current assets consist of cash, marketable securities, accounts receivable, and inventories.Inventory equals $49,000.Seabury Corporation's current liabilities must be:

Accepted Answer

A) $70,000 
B) $100,000 
C) $49,000 
D) $125,000 
A) $70,000 
B) $100,000 
C) $49,000 
D) $125,000

Question 19

Rawdon Corporation's net operating income in Year 2 was $52,429, net income before taxes was $34,429, and the net income was $24,100.Total common stock was $360,000 at the end of both Year 2 and Year 1.The par value of common stock is $4 per share.The company's total stockholders' equity at the end of Year 2 amounted to $976,000 and at the end of Year 1 to $960,000.The company's earnings per share for Year 2 is closest to:

Accepted Answer

A) $0.58 per share 
B) $0.38 per share 
C) $0.27 per share 
D) $5.84 per share 
A) $0.58 per share 
B) $0.38 per share 
C) $0.27 per share 
D) $5.84 per share

Question 20

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

Accepted Answer

A) 71.44% 
B) 4.72% 
C) 2.97% 
D) 1.93% 
A) 71.44% 
B) 4.72% 
C) 2.97% 
D) 1.93%

Younis Corporation's income statement appears below: The company's net profit margin percentage is closest to:

The times interest earned ratio for Year 2 is closest to:

As the inventory turnover increases, the average sales period decreases.

The formula for total asset turnover is: Total asset turnover = Total assets ÷ Total stockholders' equity.

The company's earnings per share is closest to:

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

The average sale period for Year 2 is closest to:

Gambino Corporation has provided the following financial data: 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?

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

Groeneweg Corporation has provided the following data: Dividends on common stock during Year 2 totaled $4,500.The market price of common stock at the end of Year 2 was $9.45 per share.The company's dividend payout ratio for Year 2 is closest to:

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

Maraby Corporation's inventory turnover for Year 2 was closest to:

The formula for the times interest earned ratio is: Times interest earned = Earnings before interest expense and income taxes ÷ Interest expense.

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

All other things the same, if long-term debt is exchanged for short-term debt, the debt-to-equity ratio will be unchanged.

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

The Seabury Corporation has a current ratio of 3.5 and an acid-test ratio of 2.8.The corporation's current assets consist of cash, marketable securities, accounts receivable, and inventories.Inventory equals $49,000.Seabury Corporation's current liabilities must be:

The company's return on equity for 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

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Exam 14: Financial Statement Analysis

Younis Corporation's income statement appears below: The company's net profit margin percentage is closest to:

The times interest earned ratio for Year 2 is closest to:

As the inventory turnover increases, the average sales period decreases.

The formula for total asset turnover is: Total asset turnover = Total assets ÷ Total stockholders' equity.

The company's earnings per share is closest to:

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

The average sale period for Year 2 is closest to:

Gambino Corporation has provided the following financial data: 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?

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

Groeneweg Corporation has provided the following data: Dividends on common stock during Year 2 totaled $4,500.The market price of common stock at the end of Year 2 was $9.45 per share.The company's dividend payout ratio for Year 2 is closest to:

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

Maraby Corporation's inventory turnover for Year 2 was closest to:

The formula for the times interest earned ratio is: Times interest earned = Earnings before interest expense and income taxes ÷ Interest expense.

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

All other things the same, if long-term debt is exchanged for short-term debt, the debt-to-equity ratio will be unchanged.

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

The Seabury Corporation has a current ratio of 3.5 and an acid-test ratio of 2.8.The corporation's current assets consist of cash, marketable securities, accounts receivable, and inventories.Inventory equals $49,000.Seabury Corporation's current liabilities must be:

The company's return on equity for 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

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