Question 1

Windham Corporation has current assets of $400,000 and current liabilities of $500,000.Windham Corporation's current ratio would be increased by:

Accepted Answer

A) the purchase of $100,000 of inventory on account. 
B) the payment of $100,000 of accounts payable. 
C) the collection of $100,000 of accounts receivable. 
D) refinancing a $100,000 long-term loan with short-term debt. 
A) the purchase of $100,000 of inventory on account. 
B) the payment of $100,000 of accounts payable. 
C) the collection of $100,000 of accounts receivable. 
D) refinancing a $100,000 long-term loan with short-term debt.

Question 2

Gnas Corporation's total current assets are $210,000, its noncurrent assets are $590,000, its total current liabilities are $160,000, its long-term liabilities are $490,000, and its stockholders' equity is $150,000.The current ratio is closest to:

Accepted Answer

A) 1.31 
B) 0.76 
C) 0.33 
D) 0.36 
A) 1.31 
B) 0.76 
C) 0.33 
D) 0.36

Question 3

Linzey Corporation has provided the following data:   The company's net income in Year 2 was $33,000.The company's book value per share at the end of Year 2 is closest to:

Accepted Answer

A) $22.45 per share 
B) $12.45 per share 
C) $0.55 per share 
D) $15.45 per share 
A) $22.45 per share 
B) $12.45 per share 
C) $0.55 per share 
D) $15.45 per share

Question 4

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

Accepted Answer

A) 226.5 days 
B) 60.1 days 
C) 40.0 days 
D) 64.4 days 
A) 226.5 days 
B) 60.1 days 
C) 40.0 days 
D) 64.4 days

Question 5

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

Accepted Answer

A) 0.28 
B) 1.28 
C) 3.53 
D) 0.78 
A) 0.28 
B) 1.28 
C) 3.53 
D) 0.78

Question 6

Maraby Corporation's average sale period for Year 2 was closest to:

Accepted Answer

A) 38.8 days 
B) 32.6 days 
C) 46.6 days 
D) 27.0 days 
A) 38.8 days 
B) 32.6 days 
C) 46.6 days 
D) 27.0 days

Question 7

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

Accepted Answer

A) 1.06 
B) 5.06 
C) 5.21 
D) 0.94 
A) 1.06 
B) 5.06 
C) 5.21 
D) 0.94

Question 8

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

Accepted Answer

A) $4.25 per share 
B) $0.43 per share 
C) $0.61 per share 
D) $0.75 per share 
A) $4.25 per share 
B) $0.43 per share 
C) $0.61 per share 
D) $0.75 per share

Question 9

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

Accepted Answer

A) 3.89 
B) 1.04 
C) 3.97 
D) 4.05 
A) 3.89 
B) 1.04 
C) 3.97 
D) 4.05

Question 10

When a company sells used equipment for a loss, the net profit margin percentage is unaffected.

Accepted Answer

A) True 
 B)False

Question 11

The company's working capital is:

Accepted Answer

A) $671,000 
B) $665,000 
C) $418,000 
D) $983,000 
A) $671,000 
B) $665,000 
C) $418,000 
D) $983,000

Question 12

The company's price-earnings ratio for Year 2 is closest to:

Accepted Answer

A) 0.76 
B) 10.64 
C) 16.52 
D) 7.73 
A) 0.76 
B) 10.64 
C) 16.52 
D) 7.73

Question 13

Vertical analysis of financial statements is accomplished by preparing common-size statements.

Accepted Answer

A) True 
 B)False

Question 14

The company's price-earnings ratio for Year 2 is closest to:

Accepted Answer

A) 3.79 
B) 10.58 
C) 0.17 
D) 7.44 
A) 3.79 
B) 10.58 
C) 0.17 
D) 7.44

Question 15

Fongeallaz Corporation's income statement for Year 2 appears below:   The company's total stockholders' equity at the end of Year 2 amounted to $841,000 and at the end of Year 1 to $810,000.The company's return on equity for Year 2 is closest to:

Accepted Answer

A) 64.40% 
B) 8.93% 
C) 6.75% 
D) 4.72% 
A) 64.40% 
B) 8.93% 
C) 6.75% 
D) 4.72%

Question 16

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

Accepted Answer

A) 0.38 
B) 2.17 
C) 0.94 
D) 0.40 
A) 0.38 
B) 2.17 
C) 0.94 
D) 0.40

Question 17

Dennisport Corporation has an acid-test ratio of 2.5.It has current liabilities of $40,000 and noncurrent assets of $70,000.The corporation's current assets consist of cash, marketable securities, accounts receivable, prepaid expenses, and inventory; it has no short-term notes receivable.If Dennisport's current ratio is 3.1, its inventory and prepaid expenses must be:

Accepted Answer

A) $12,400 
B) $24,000 
C) $30,000 
D) $40,000 
A) $12,400 
B) $24,000 
C) $30,000 
D) $40,000

Question 18

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

Accepted Answer

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

Question 19

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

Accepted Answer

A) 2.09% 
B) 2.08% 
C) 1.67% 
D) 1.66% 
A) 2.09% 
B) 2.08% 
C) 1.67% 
D) 1.66%

Question 20

Gehlhausen Corporation has provided the following financial data:     Dividends on common stock during Year 2 totaled $5,600.The market price of common stock at the end of Year 2 was $5.60 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?

Accepted Answer

a.Net profit margin percentage = Net inc

Windham Corporation has current assets of $400,000 and current liabilities of $500,000.Windham Corporation's current ratio would be increased by:

Gnas Corporation's total current assets are $210,000, its noncurrent assets are $590,000, its total current liabilities are $160,000, its long-term liabilities are $490,000, and its stockholders' equity is $150,000.The current ratio is closest to:

Linzey Corporation has provided the following data: The company's net income in Year 2 was $33,000.The company's book value per share at the end of Year 2 is closest to:

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

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

Maraby Corporation's average sale period for Year 2 was closest to:

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

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

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

When a company sells used equipment for a loss, the net profit margin percentage is unaffected.

The company's working capital is:

The company's price-earnings ratio for Year 2 is closest to:

Vertical analysis of financial statements is accomplished by preparing common-size statements.

The company's price-earnings ratio for Year 2 is closest to:

Fongeallaz Corporation's income statement for Year 2 appears below: The company's total stockholders' equity at the end of Year 2 amounted to $841,000 and at the end of Year 1 to $810,000.The company's return on equity for Year 2 is closest to:

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

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

The company's return on total assets 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

Windham Corporation has current assets of $400,000 and current liabilities of $500,000.Windham Corporation's current ratio would be increased by:

Gnas Corporation's total current assets are $210,000, its noncurrent assets are $590,000, its total current liabilities are $160,000, its long-term liabilities are $490,000, and its stockholders' equity is $150,000.The current ratio is closest to:

Linzey Corporation has provided the following data: The company's net income in Year 2 was $33,000.The company's book value per share at the end of Year 2 is closest to:

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

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

Maraby Corporation's average sale period for Year 2 was closest to:

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

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

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

When a company sells used equipment for a loss, the net profit margin percentage is unaffected.

The company's working capital is:

The company's price-earnings ratio for Year 2 is closest to:

Vertical analysis of financial statements is accomplished by preparing common-size statements.

The company's price-earnings ratio for Year 2 is closest to:

Fongeallaz Corporation's income statement for Year 2 appears below: The company's total stockholders' equity at the end of Year 2 amounted to $841,000 and at the end of Year 1 to $810,000.The company's return on equity for Year 2 is closest to:

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

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

The company's return on total assets 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