Question 1

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

Accepted Answer

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

Question 2

The acid-test (quick)ratio at the end of Year 2 is closest to:

Accepted Answer

A) 0.72 
B) 0.83 
C) 0.59 
D) 1.25 
A) 0.72 
B) 0.83 
C) 0.59 
D) 1.25

Question 3

Financial statements for Rardin Corporation appear below:     Required:
Compute the following for Year 2:
a.Current ratio.
b.Acid-test (quick)ratio.
c.Average collection period.
d.Inventory turnover.
e.Times interest earned ratio.
f.Debt-to-equity ratio.

Accepted Answer

a.Current ratio = Current assets ÷ Curre

Question 4

Straton Corporation has provided the following financial data:     Dividends on common stock during Year 2 totaled $2,100.The market price of common stock at the end of Year 2 was $5.56 per share.
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?
e.What is the company's earnings per share for Year 2?
f.What is the company's price-earnings ratio for Year 2?
g.What is the company's dividend payout ratio for Year 2?
h.What is the company's dividend yield ratio for Year 2?
i.What is the company's book value per share at the end of Year 2?

Accepted Answer

a.Net profit margin percentage = Net inc

Question 5

The company's dividend yield ratio for Year 2 is closest to:

Accepted Answer

A) 1.0% 
B) 18.4% 
C) 26.3% 
D) 2.5% 
A) 1.0% 
B) 18.4% 
C) 26.3% 
D) 2.5%

Question 6

Grosvenor Corporation's most recent income statement appears below:   The gross margin percentage is closest to:

Accepted Answer

A) 80.9% 
B) 44.7% 
C) 376.0% 
D) 26.6% 
A) 80.9% 
B) 44.7% 
C) 376.0% 
D) 26.6%

Question 7

The accounts receivable turnover for Year 2 is closest to:

Accepted Answer

A) 1.10 
B) 0.91 
C) 11.52 
D) 12.10 
A) 1.10 
B) 0.91 
C) 11.52 
D) 12.10

Question 8

Narstad Corporation's times interest earned ratio for Year 2 was closest to:

Accepted Answer

A) 11.0 
B) 10.0 
C) 18.0 
D) 7.0 
A) 11.0 
B) 10.0 
C) 18.0 
D) 7.0

Question 9

Walker Corporation has provided the following financial data:   The company's net operating income for Year 2 was $63,615 and its interest expense was $15,000.
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 10

Perrett 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 11

Which one of the following statements about book value per share is most correct?

Accepted Answer

A) Market price per common share usually approximates book value per common share. 
B) Book value per common share is based on past transactions whereas the market price of a share of stock mainly reflects what investors expect to happen in the future. 
C) A market price per common share that is greater than book value per common share is an indication of an overvalued stock. 
D) Book value per common share is the amount that would be paid to stockholders if the company were sold to another company. 
A) Market price per common share usually approximates book value per common share. 
B) Book value per common share is based on past transactions whereas the market price of a share of stock mainly reflects what investors expect to happen in the future. 
C) A market price per common share that is greater than book value per common share is an indication of an overvalued stock. 
D) Book value per common share is the amount that would be paid to stockholders if the company were sold to another company.

Question 12

Rubendall Corporation's total current assets are $310,000, its noncurrent assets are $630,000, its total current liabilities are $250,000, its long-term liabilities are $300,000, and its stockholders' equity is $390,000.
Required:
Compute the company's current ratio.Show your work!

Accepted Answer

Current ratio = Curr

Question 13

Uhri Corporation has provided the following data:   Dividends on common stock during Year 2 totaled $4,000.The market price of common stock at the end of Year 2 was $6.08 per share.The company's dividend payout ratio for Year 2 is closest to:

Accepted Answer

A) 7.8% 
B) 1.3% 
C) 11.1% 
D) 0.8% 
A) 7.8% 
B) 1.3% 
C) 11.1% 
D) 0.8%

Question 14

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

Accepted Answer

A) 12.95 
B) 1.02 
C) 0.98 
D) 13.06 
A) 12.95 
B) 1.02 
C) 0.98 
D) 13.06

Question 15

The company's equity multiplier at the end of Year 2 is closest to:

Accepted Answer

A) 0.64 
B) 1.65 
C) 1.57 
D) 0.61 
A) 0.64 
B) 1.65 
C) 1.57 
D) 0.61

Question 16

Earnings per share is computed by multiplying net income by the average number of common shares outstanding.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) 59.6% 
B) 2.5% 
C) 37.3% 
D) 4076.9% 
A) 59.6% 
B) 2.5% 
C) 37.3% 
D) 4076.9%

Question 18

Norton Inc.could improve its current ratio of 2 by:

Accepted Answer

A) paying a previously declared stock dividend. 
B) writing off an uncollectible receivable. 
C) selling merchandise on credit at a profit. 
D) purchasing inventory on credit. 
A) paying a previously declared stock dividend. 
B) writing off an uncollectible receivable. 
C) selling merchandise on credit at a profit. 
D) purchasing inventory on credit.

Question 19

Maraby Corporation's current ratio at the end of Year 2 was closest to:

Accepted Answer

A) 1.34 
B) 1.72 
C) 0.60 
D) 0.44 
A) 1.34 
B) 1.72 
C) 0.60 
D) 0.44

Question 20

Issuing common stock will decrease a company's financial leverage.

Accepted Answer

A) True 
 B)False

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

The acid-test (quick)ratio at the end of Year 2 is closest to:

Financial statements for Rardin Corporation appear below: Required: Compute the following for Year 2: a.Current ratio. b.Acid-test (quick)ratio. c.Average collection period. d.Inventory turnover. e.Times interest earned ratio. f.Debt-to-equity ratio.

The company's dividend yield ratio for Year 2 is closest to:

Grosvenor Corporation's most recent income statement appears below: The gross margin percentage is closest to:

The accounts receivable turnover for Year 2 is closest to:

Narstad Corporation's times interest earned ratio for Year 2 was closest to:

Which one of the following statements about book value per share is most correct?

Rubendall Corporation's total current assets are $310,000, its noncurrent assets are $630,000, its total current liabilities are $250,000, its long-term liabilities are $300,000, and its stockholders' equity is $390,000. Required: Compute the company's current ratio.Show your work!

Uhri Corporation has provided the following data: Dividends on common stock during Year 2 totaled $4,000.The market price of common stock at the end of Year 2 was $6.08 per share.The company's dividend payout ratio for Year 2 is closest to:

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

The company's equity multiplier at the end of Year 2 is closest to:

Earnings per share is computed by multiplying net income by the average number of common shares outstanding.

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

Norton Inc.could improve its current ratio of 2 by:

Maraby Corporation's current ratio at the end of Year 2 was closest to:

Issuing common stock will decrease a company's financial leverage.

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

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

The acid-test (quick)ratio at the end of Year 2 is closest to:

Financial statements for Rardin Corporation appear below: Required: Compute the following for Year 2: a.Current ratio. b.Acid-test (quick)ratio. c.Average collection period. d.Inventory turnover. e.Times interest earned ratio. f.Debt-to-equity ratio.

The company's dividend yield ratio for Year 2 is closest to:

Grosvenor Corporation's most recent income statement appears below: The gross margin percentage is closest to:

The accounts receivable turnover for Year 2 is closest to:

Narstad Corporation's times interest earned ratio for Year 2 was closest to:

Which one of the following statements about book value per share is most correct?

Rubendall Corporation's total current assets are $310,000, its noncurrent assets are $630,000, its total current liabilities are $250,000, its long-term liabilities are $300,000, and its stockholders' equity is $390,000. Required: Compute the company's current ratio.Show your work!

Uhri Corporation has provided the following data: Dividends on common stock during Year 2 totaled $4,000.The market price of common stock at the end of Year 2 was $6.08 per share.The company's dividend payout ratio for Year 2 is closest to:

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

The company's equity multiplier at the end of Year 2 is closest to:

Earnings per share is computed by multiplying net income by the average number of common shares outstanding.

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

Norton Inc.could improve its current ratio of 2 by:

Maraby Corporation's current ratio at the end of Year 2 was closest to:

Issuing common stock will decrease a company's financial leverage.

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