Question 1

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

Accepted Answer

A) 5.17 
B) 5.56 
C) 6.00 
D) 0.86 
A) 5.17 
B) 5.56 
C) 6.00 
D) 0.86

Question 2

Dratif Corporation's working capital is $33,000 and its current liabilities are $80,000.The corporation's current ratio is closest to:

Accepted Answer

A) 1.41 
B) 0.59 
C) 3.42 
D) 0.41 
A) 1.41 
B) 0.59 
C) 3.42 
D) 0.41

Question 3

Zack Company has a current ratio of 2.5.What will be the effect of a purchase of inventory with cash on the acid-test ratio and on working capital?

Accepted Answer

The answer of Zack Company has a current ratio of...

Question 4

Sapien Corporation has provided the following data for the most recent year:   The company's gross margin percentage is closest to:

Accepted Answer

A) 52.3% 
B) 1691.2% 
C) 5.9% 
D) 34.3% 
A) 52.3% 
B) 1691.2% 
C) 5.9% 
D) 34.3%

Question 5

The ratio of total cash, marketable securities, accounts receivable, and short-term notes to current liabilities is:

Accepted Answer

A) the debt-to-equity ratio. 
B) the current ratio. 
C) the acid-test ratio. 
D) working capital. 
A) the debt-to-equity ratio. 
B) the current ratio. 
C) the acid-test ratio. 
D) working capital.

Question 6

Wyand Corporation's net operating income last year was $212,000; its interest expense was $26,000; its total stockholders' equity was $1,000,000; and its total liabilities were $370,000.
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 7

Weightman Corporation's net operating income in Year 2 was $76,385, net income before taxes was $55,385, and the net income was $36,000.Total common stock was $200,000 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 $983,000 and at the end of Year 1 to $950,000.The market price per share at the end of Year 2 was $7.92.The company's price-earnings ratio for Year 2 is closest to:

Accepted Answer

A) 7.14 
B) 0.58 
C) 5.18 
D) 11.00 
A) 7.14 
B) 0.58 
C) 5.18 
D) 11.00

Question 8

Kopas Corporation has provided the following data:   The inventory turnover for this year is closest to:

Accepted Answer

A) 3.09 
B) 0.98 
C) 1.03 
D) 3.05 
A) 3.09 
B) 0.98 
C) 1.03 
D) 3.05

Question 9

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

Accepted Answer

A) $11.37 per share 
B) $7.37 per share 
C) $0.19 per share 
D) $16.81 per share 
A) $11.37 per share 
B) $7.37 per share 
C) $0.19 per share 
D) $16.81 per share

Question 10

The average collection period for Year 2 is closest to:

Accepted Answer

A) 1.1 days 
B) 0.9 days 
C) 84.3 days 
D) 87.3 days 
A) 1.1 days 
B) 0.9 days 
C) 84.3 days 
D) 87.3 days

Question 11

If current assets exceed current liabilities, prepaying an expense on the last day of the year will:

Accepted Answer

A) decrease the current ratio. 
B) increase the acid-test ratio. 
C) decrease the acid-test ratio. 
D) increase the current ratio. 
A) decrease the current ratio. 
B) increase the acid-test ratio. 
C) decrease the acid-test ratio. 
D) increase the current ratio.

Question 12

Calin Corporation has total current assets of $615,000, total current liabilities of $230,000, total stockholders' equity of $1,183,000, total net plant and equipment of $958,000, total assets of $1,573,000, and total liabilities of $390,000.The company's working capital is:

Accepted Answer

A) $615,000 
B) $1,183,000 
C) $385,000 
D) $958,000 
A) $615,000 
B) $1,183,000 
C) $385,000 
D) $958,000

Question 13

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

Accepted Answer

A) 35.7 days 
B) 1.1 days 
C) 1.0 days 
D) 35.2 days 
A) 35.7 days 
B) 1.1 days 
C) 1.0 days 
D) 35.2 days

Question 14

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

Accepted Answer

A) 65.6 days 
B) 226.6 days 
C) 43.8 days 
D) 70.6 days 
A) 65.6 days 
B) 226.6 days 
C) 43.8 days 
D) 70.6 days

Question 15

Data from Dalpiaz Corporation's most recent balance sheet and income statement appear below:   Required:
Compute the average collection period for this year:

Accepted Answer

Average collection period = 365 days ÷ A

Question 16

Jepson Corporation's most recent income statement appears below:   Required:
Compute the gross margin percentage.

Accepted Answer

Gross margin percent

Question 17

Kienle Corporation's Year 2 income statement appears below:   The company's total assets at the end of Year 2 amounted to $1,359,000 and at the end of Year 1 to $1,320,000.The company's return on total assets for Year 2 is closest to:

Accepted Answer

A) 2.48% 
B) 3.14% 
C) 2.52% 
D) 3.10% 
A) 2.48% 
B) 3.14% 
C) 2.52% 
D) 3.10%

Question 18

Mormino Corporation's income statement appears below:   The company's gross margin percentage is closest to:

Accepted Answer

A) 1888.9% 
B) 5.3% 
C) 41.1% 
D) 69.9% 
A) 1888.9% 
B) 5.3% 
C) 41.1% 
D) 69.9%

Question 19

When fixed costs are included in the cost of goods sold, the gross margin percentage should increase and decrease with sales volume.

Accepted Answer

A) True 
 B)False

Question 20

Erastic Corporation has $14,000 in cash, $8,000 in marketable securities, $34,000 in account receivable, $40,000 in inventories, and $42,000 in current liabilities.The corporation's current assets consist of cash, marketable securities, accounts receivable, and inventory.The corporation's acid-test ratio is closest to:

Accepted Answer

A) 1.33 
B) 0.81 
C) 2.29 
D) 1.14 
A) 1.33 
B) 0.81 
C) 2.29 
D) 1.14

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

Dratif Corporation's working capital is $33,000 and its current liabilities are $80,000.The corporation's current ratio is closest to:

Zack Company has a current ratio of 2.5.What will be the effect of a purchase of inventory with cash on the acid-test ratio and on working capital?

Sapien Corporation has provided the following data for the most recent year: The company's gross margin percentage is closest to:

The ratio of total cash, marketable securities, accounts receivable, and short-term notes to current liabilities is:

Wyand Corporation's net operating income last year was $212,000; its interest expense was $26,000; its total stockholders' equity was $1,000,000; and its total liabilities were $370,000. Required: Compute the following for Year 2: a.Times interest earned ratio. b.Debt-to-equity ratio.

Kopas Corporation has provided the following data: The inventory turnover for this year is closest to:

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

The average collection period for Year 2 is closest to:

If current assets exceed current liabilities, prepaying an expense on the last day of the year will:

Calin Corporation has total current assets of $615,000, total current liabilities of $230,000, total stockholders' equity of $1,183,000, total net plant and equipment of $958,000, total assets of $1,573,000, and total liabilities of $390,000.The company's working capital is:

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

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

Data from Dalpiaz Corporation's most recent balance sheet and income statement appear below: Required: Compute the average collection period for this year:

Jepson Corporation's most recent income statement appears below: Required: Compute the gross margin percentage.

Kienle Corporation's Year 2 income statement appears below: The company's total assets at the end of Year 2 amounted to $1,359,000 and at the end of Year 1 to $1,320,000.The company's return on total assets for Year 2 is closest to:

Mormino Corporation's income statement appears below: The company's gross margin percentage is closest to:

When fixed costs are included in the cost of goods sold, the gross margin percentage should increase and decrease with sales volume.

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

Exam 14: Financial Statement Analysis

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

Dratif Corporation's working capital is $33,000 and its current liabilities are $80,000.The corporation's current ratio is closest to:

Zack Company has a current ratio of 2.5.What will be the effect of a purchase of inventory with cash on the acid-test ratio and on working capital?

Sapien Corporation has provided the following data for the most recent year: The company's gross margin percentage is closest to:

The ratio of total cash, marketable securities, accounts receivable, and short-term notes to current liabilities is:

Wyand Corporation's net operating income last year was $212,000; its interest expense was $26,000; its total stockholders' equity was $1,000,000; and its total liabilities were $370,000. Required: Compute the following for Year 2: a.Times interest earned ratio. b.Debt-to-equity ratio.

Kopas Corporation has provided the following data: The inventory turnover for this year is closest to:

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

The average collection period for Year 2 is closest to:

If current assets exceed current liabilities, prepaying an expense on the last day of the year will:

Calin Corporation has total current assets of $615,000, total current liabilities of $230,000, total stockholders' equity of $1,183,000, total net plant and equipment of $958,000, total assets of $1,573,000, and total liabilities of $390,000.The company's working capital is:

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

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

Data from Dalpiaz Corporation's most recent balance sheet and income statement appear below: Required: Compute the average collection period for this year:

Jepson Corporation's most recent income statement appears below: Required: Compute the gross margin percentage.

Kienle Corporation's Year 2 income statement appears below: The company's total assets at the end of Year 2 amounted to $1,359,000 and at the end of Year 1 to $1,320,000.The company's return on total assets for Year 2 is closest to:

Mormino Corporation's income statement appears below: The company's gross margin percentage is closest to:

When fixed costs are included in the cost of goods sold, the gross margin percentage should increase and decrease with sales volume.

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