Question 1

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

Accepted Answer

A) 1.6% 
B) 21.1% 
C) 2.6% 
D) 14.7% 
A) 1.6% 
B) 21.1% 
C) 2.6% 
D) 14.7%

Question 2

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

Accepted Answer

A) 2.22 
B) 4.17 
C) 3.17 
D) 5.95 
A) 2.22 
B) 4.17 
C) 3.17 
D) 5.95

Question 3

The working capital at the end of Year 2 is:

Accepted Answer

A) $850 
B) $770 
C) $400 
D) $80 
A) $850 
B) $770 
C) $400 
D) $80

Question 4

All other things the same, if the company purchases equipment on credit, this transaction would have no impact on the company's book value per share.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) $6.33 per share 
B) $0.29 per share 
C) $0.45 per share 
D) $0.62 per share 
A) $6.33 per share 
B) $0.29 per share 
C) $0.45 per share 
D) $0.62 per share

Question 6

Which of the following actions would improve a current ratio of 0.8?

Accepted Answer

A) Use cash to pay off some current liabilities. 
B) Purchase additional marketable securities with cash. 
C) Acquire a parcel of land in exchange for common stock. 
D) Purchase additional inventory on credit. 
A) Use cash to pay off some current liabilities. 
B) Purchase additional marketable securities with cash. 
C) Acquire a parcel of land in exchange for common stock. 
D) Purchase additional inventory on credit.

Question 7

The company's dividend payout ratio is closest to:

Accepted Answer

A) 1.3% 
B) 1.7% 
C) 17.1% 
D) 26.3% 
A) 1.3% 
B) 1.7% 
C) 17.1% 
D) 26.3%

Question 8

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

Accepted Answer

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

Question 9

Fraction 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 10

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

Accepted Answer

A) 1.67 
B) 0.32 
C) 0.80 
D) 0.41 
A) 1.67 
B) 0.32 
C) 0.80 
D) 0.41

Question 11

Delfavero Corporation has provided the following data:   The company's earnings per share for Year 2 is closest to:

Accepted Answer

A) $10.33 per share 
B) $0.52 per share 
C) $0.34 per share 
D) $0.79 per share 
A) $10.33 per share 
B) $0.52 per share 
C) $0.34 per share 
D) $0.79 per share

Question 12

Maraby Corporation's acid-test (quick)ratio at the end of Year 2 was closest to:

Accepted Answer

A) 0.51 
B) 0.47 
C) 1.14 
D) 1.95 
A) 0.51 
B) 0.47 
C) 1.14 
D) 1.95

Question 13

Acquiring land by taking out a long-term mortgage will not affect the current ratio.

Accepted Answer

A) True 
 B)False

Question 14

Kisselburg Corporation has provided the following financial data:     Dividends on common stock during Year 2 totaled $4,000.The market price of common stock at the end of Year 2 was $5.75 per share.
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 accounts receivable turnover for Year 2?
e.What is the company's average collection period for Year 2?
f.What is the company's inventory turnover for Year 2?
g.What is the company's average sale period for Year 2?
h.What is the company's operating cycle for Year 2?
i.What is the company's total asset turnover for Year 2?
j.What is the company's times interest earned ratio for Year 2?
k.What is the company's debt-to-equity ratio at the end of Year 2?
l.What is the company's equity multiplier at the end of Year 2?
m.What is the company's net profit margin percentage for Year 2?
n.What is the company's gross margin percentage for Year 2?
o.What is the company's return on total assets for Year 2?
p.What is the company's return on equity for Year 2?
q.What is the company's earnings per share for Year 2?
r.What is the company's price-earnings ratio for Year 2?
s.What is the company's dividend payout ratio for Year 2?
t.What is the company's dividend yield ratio for Year 2?
u.What is the company's book value per share at the end of Year 2?

Accepted Answer

a.Working capital = Current assets - Cur

Question 15

Stimac Corporation has total cash of $210,000, no marketable securities, total current receivables of $281,000, total inventory of $151,000, total prepaid expenses of $53,000, total current assets of $695,000, total current liabilities of $261,000, total stockholders' equity of $1,014,000, total assets of $1,415,000, and total liabilities of $401,000.The company's acid-test (quick)ratio is closest to:

Accepted Answer

A) 2.08 
B) 1.73 
C) 2.66 
D) 1.88 
A) 2.08 
B) 1.73 
C) 2.66 
D) 1.88

Question 16

Moselle Corporation has provided the following financial data:     Dividends on common stock during Year 2 totaled $4,200.The market price of common stock at the end of Year 2 was $9.72 per share.
Required:
a.What is the company's earnings per share for Year 2?
b.What is the company's price-earnings ratio for Year 2?
c.What is the company's dividend payout ratio for Year 2?
d.What is the company's dividend yield ratio for Year 2?
e.What is the company's book value per share at the end of Year 2?

Accepted Answer

a.Earnings per share = Net Income ÷ Aver

Question 17

Karma Corporation has total assets of $190,000 and total liabilities of $90,000.The corporation's debt-to-equity ratio is closest to:

Accepted Answer

A) 0.47 
B) 0.90 
C) 0.53 
D) 0.32 
A) 0.47 
B) 0.90 
C) 0.53 
D) 0.32

Question 18

Irawaddy Company, a retailer, had cost of goods sold of $230,000 last year.The beginning inventory balance was $24,000 and the ending inventory balance was $22,000.The company's average sale period was closest to:

Accepted Answer

A) 36.5 days 
B) 73.0 days 
C) 38.1 days 
D) 34.9 days 
A) 36.5 days 
B) 73.0 days 
C) 38.1 days 
D) 34.9 days

Question 19

Louie Corporation has provided the following data:   The company's operating cycle for Year 2 is closest to:

Accepted Answer

A) 81.0 days 
B) 150.5 days 
C) 79.2 days 
D) 9.7 days 
A) 81.0 days 
B) 150.5 days 
C) 79.2 days 
D) 9.7 days

Question 20

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

Accepted Answer

A) 66.2 days 
B) 16.5 days 
C) 95.3 days 
D) 45.6 days 
A) 66.2 days 
B) 16.5 days 
C) 95.3 days 
D) 45.6 days

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

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

The working capital at the end of Year 2 is:

All other things the same, if the company purchases equipment on credit, this transaction would have no impact on the company's book value per share.

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

Which of the following actions would improve a current ratio of 0.8?

The company's dividend payout ratio is closest to:

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

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

Delfavero Corporation has provided the following data: The company's earnings per share for Year 2 is closest to:

Maraby Corporation's acid-test (quick)ratio at the end of Year 2 was closest to:

Acquiring land by taking out a long-term mortgage will not affect the current ratio.

Karma Corporation has total assets of $190,000 and total liabilities of $90,000.The corporation's debt-to-equity ratio is closest to:

Irawaddy Company, a retailer, had cost of goods sold of $230,000 last year.The beginning inventory balance was $24,000 and the ending inventory balance was $22,000.The company's average sale period was closest to:

Louie Corporation has provided the following data: The company's operating cycle for Year 2 is closest to:

The company's operating cycle 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

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

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

The working capital at the end of Year 2 is:

All other things the same, if the company purchases equipment on credit, this transaction would have no impact on the company's book value per share.

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

Which of the following actions would improve a current ratio of 0.8?

The company's dividend payout ratio is closest to:

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

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

Delfavero Corporation has provided the following data: The company's earnings per share for Year 2 is closest to:

Maraby Corporation's acid-test (quick)ratio at the end of Year 2 was closest to:

Acquiring land by taking out a long-term mortgage will not affect the current ratio.

Karma Corporation has total assets of $190,000 and total liabilities of $90,000.The corporation's debt-to-equity ratio is closest to:

Irawaddy Company, a retailer, had cost of goods sold of $230,000 last year.The beginning inventory balance was $24,000 and the ending inventory balance was $22,000.The company's average sale period was closest to:

Louie Corporation has provided the following data: The company's operating cycle for Year 2 is closest to:

The company's operating cycle 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

Filters