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Cards (34)

  • Gains and losses that are normal and frequent are reported asPart of continuing operations.:
  • Financial statements with data for two or more successive accounting periods placed in columns side by side, sometimes with changes shown in both dollar amounts and percentages, are referred to as comparative statements.:
  • Ash Company reported sales of $400,000 for Year 1, $450,000 for Year 2, and $500,000 for Year 3. Using Year 1 as the base year, what is the revenue trend percent for Years 2 and 3? 112.5% for Year 2 and 125% for Year 3.
  • Jones Corporation reported current assets of $193,000 and current liabilities of $137,000 on its most recent balance sheet. The working capital is:$56,000.
  • Current assets divided by current liabilities is the: current ratio
  • Clairmont Industries reported net income of $282,828, average total assets of $637,000, and comprehensive income of $354,172. The return on total assets is: 44.4%.
  • How long a company holds inventory before selling it can be measured by dividing cost of goods sold by the average inventory balance to determine theInventory turnover.:
  • Delta Company reports the following year-end balance sheet data. The company's acid-test ratio equals:
    Cash
    $ 60,000
    Current liabilities
    $ 95,000
    Accounts receivable
    75,000
    Long-term liabilities
    20,000
    Inventory
    80,000
    Common stock
    120,000
    Equipment
    165,000
    Retained earnings
    145,000
    Total assets
    $ 380,000
    Total liabilities and equity
    $ 380,000
    1.42
  • Use the following selected information from Corolla to determine the Year 1 and Year 2 trend percentages for net sales using Year 1 as the base.
     Year 2Year 1Net sales
    $ 276,523
    $ 231,400
    Cost of goods sold
    151,900
    129,590
    Operating expenses
    55,240
    53,240
    Net earnings
    27,820
    19,820
    119.5% for Year 2 and 100.0% for Year 1.
  • Use the following selected information from Carleton Incorporated to determine the Year 1 and Year 2 trend percentages for cost of goods sold using Year 1 as the base.
     Year 2Year 1Net sales
    $ 450,000
    $ 425,000
    Cost of goods sold
    304,325
    259,000
    Operating expenses
    55,240
    53,240
    Net earnings
    27,750
    19,800
    117.5% for Year 2 and 100.0% for Year 1.
  • Refer to the following selected financial information from Texas Electronics. Compute the company's current ratio for Year 2.
    Note: Round your answer to 2 decimal places.
     Year 2Year 1Cash
    $ 37,500
    $ 36,850
    Short-term investments
    90,000
    90,000
    Accounts receivable, net
    85,500
    86,250
    Merchandise inventory
    121,000
    117,000
    Prepaid expenses
    12,100
    13,500
    Plant assets
    388,000
    392,000
    Accounts payable
    113,400
    111,750
    Net sales
    711,000
    706,000
    Cost of goods sold
    390,000
    385,500
    3.05.
  • Refer to the following selected financial information from WorkFit Corporation. Compute the company's acid-test ratio.
    Cash
    $ 42,250
    Short-term investments
    59,180
    Accounts receivable, net
    79,500
    Merchandise inventory
    115,000
    Prepaid expenses
    9,700
    Current liabilities
    111,000
    1.63.
  • Horizontal analysis: Is a method used to evaluate changes in financial data across time.
  • Comparative financial statements in which each individual financial statement amount is expressed as a percentage of a base amount are called:Common-size comparative statements.
  • A corporation reported cash of $15,300 and total assets of $180,000 on its balance sheet. Its common-size percent for cash equals: 8.50%.
  • Net sales divided by average accounts receivable, net is the:Accounts receivable turnover ratio.
  • Zhang Company reported Cost of goods sold of $835,000, beginning Inventory of $37,200 and ending Inventory of $46,300. The average Inventory amount is:$41,750.
  • Which of the following ratios is a measure of solvency? Times interest earned ratio.
  • Asiago Company reports the following year-end balance sheet data. The company's equity ratio equals:
    Cash
    $ 40,000
    Current liabilities
    $ 75,000
    Accounts receivable
    55,000
    Long-term liabilities
    36,000
    Inventory
    60,000
    Common stock
    100,000
    Equipment
    145,000
    Retained earnings
    89,000
    Total assets
    $ 300,000
    Total liabilities and equity
    $ 300,000
    0.63
  • WD Corporation reports the following year-end balance sheet data. The company's debt-to-equity ratio equals:
    Cash
    $ 40,000
    Current liabilities
    $ 75,000
    Accounts receivable
    55,200
    Long-term liabilities
    35,200
    Inventory
    60,000
    Common stock
    100,000
    Equipment
    145,000
    Retained earnings
    90,000
    Total assets
    $ 300,200
    Total liabilities and equity
    $ 300,200
    0.58
  • Which of the following statements regarding a business segment is false? The income tax effects of a discontinued business segment are combined with income tax from continuing operations.
  • A business segment's income for the period prior to the disposal and the gain or loss resulting from disposing of the segment's assets are reported separately.
  • A gain or loss from selling or closing down a business segment is separately reported.
  • A business segment has assets, liabilities, and financial results of operations that can be separated from those of other parts of the company.
  • A business segment is a part of a company that is separated by its products/services or by geographic location.
  • Refer to the following selected financial information from Texas Electronics. Compute the company's inventory turnover for Year 2.
    Note: Round your answer to 2 decimal places.
     Year 2Year 1Cash
    $ 37,500
    $ 36,850
    Short-term investments
    90,000
    90,000
    Accounts receivable, net
    85,500
    86,250
    Merchandise inventory
    121,000
    117,000
    Prepaid expenses
    12,100
    13,500
    Plant assets
    388,000
    392,000
    Accounts payable
    113,400
    111,750
    Net sales
    711,000
    706,000
    Cost of goods sold
    390,000
    385,500
    3.28.
  • Refer to the following selected financial information from Texas Electronics. Compute the company's days' sales uncollected for Year 2.
    Note: Round your answer to 1 decimal place.
     Year 2Year 1Cash
    $ 37,500
    $ 36,850
    Short-term investments
    90,000
    90,000
    Accounts receivable, net
    85,500
    86,250
    Merchandise inventory
    121,000
    117,000
    Prepaid expenses
    12,100
    13,500
    Plant assets
    388,000
    392,000
    Accounts payable
    113,400
    111,750
    Net sales
    711,000
    706,000
    Cost of goods sold
    390,000
    385,500
    43.9.
  • Martinez Corporation reported net sales of $765,000, net income of $141,525, and total assets of $7,634,409. The profit margin is:18.5%.
  • Clairmont Industries reported net income of $282,828, average total assets of $637,000, and comprehensive income of $354,172. The return on total assets is: 44.4%.
  • Annual cash dividends per share divided by market price per share is the:Dividend yield.
  • The market price of Shaw Corporation’s common stock is $50.00. Shaw declared and paid cash dividends of $3.30 per share and had earnings per share of $6.89. The Dividend yield ratio is: 6.6%.
  • A component of profitability, calculated by expressing net income as a percent of net sales, is the: Profit margin ratio.
  • A company had a market price of $27.50 per share, earnings per share of $1.25, and dividends per share of $0.40. Its price-earnings ratio equals:22.0.
  • Stark Company's most recent balance sheet reported total assets of $1,903,000, total liabilities of $803,000, and total equity of $1,100,000. Its debt-to-equity ratio is: 0.73