Question 1

Complete:
  
A. $42,000;
B. 23.81%;
C. 16.67%;
D. 9.52%;
E. 50.00%

Accepted Answer

The answer of Complete:
  
A. $42,000;
B. 23.81%;
C. 16.67%;
D. 9.52%;
E....

Question 2

In analyzing the income statement of Bob Company, cost of goods sold decreased from 2016 to 2017 by 8.2%. The cost of goods sold was $19,000 in 2016. The cost of goods sold to the nearest cent in 2017 was:
A) $20,697.17
B) $20,679.71
C) $20,769.71
D) $20,796.71
E) None of these

Accepted Answer

The answer of In analyzing the income statement of Bob...

Question 3

Solve for (A) current ratio, (B) acid test (quick), (C) average day's collection, (D) asset turnover, and (E) profit margin on sales. Round to nearest hundredth or hundredth percent as needed.
  
A. 1.41;
B. 1.18;
C. 35 days;
D. 1.33;
E. 15.91%

Accepted Answer

The answer of Solve for (A) current ratio, (B) acid...

Question 4

Bill's Pizza has an asset turnover of 3.5. The total assets of Bill's were $95,000. The net sales of Bill's Pizza is:
A) $27,142.85
B) $332,500.00
C) $271,428.50
D) $33,250.00
E) None of these

Accepted Answer

Asset turnover is calculated as Net Sales divided by Total Assets. Given an asset turnover of 3.5 and total assets of $95,000, the net sales can be calculated as 3.5 * $95,000 = $332,500.

Question 5

Given gross sales of $40,000 and sales returns and allowances of $6,000, what are the net sales?
A) $50,000
B) $46,000
C) $34,500
D) $34,000
E) None of these

Accepted Answer

Net sales are calculated by subtracting sales returns and allowances from gross sales. Therefore, $40,000 - $6,000 = $34,000.

Question 6

Lee Company has a current ratio of 2.65. The acid test ratio is 2.01. The current liabilities of Lee are $45,000. The dollar amount of merchandise inventory is (assume no prepaid expenses):
A) $28,008
B) $28,800
C) $90,450
D) $90,540
E) None of these

Accepted Answer

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

Question 7

Complete the horizontal analysis below: 
A) ($3,809), 4.1%
B) $3,809, 4.1%
C) $180,485, 51.1%
D) $8,300, 15%
E) None of these

Accepted Answer

The horizontal analysis involves comparing data from two periods. However, only one period's data is provided in the question. Therefore, it is impossible to determine the correct answer for the horizontal analysis.

Question 8

The asset turnover of Ryan Company is 7.2. The total assets of Ryan are $88,000. Ryan's net sales were:
A) $6,336
B) $63,360
C) $633,000
D) $633,600
E) None of these

Accepted Answer

The answer of The asset turnover of Ryan Company is...

Question 9

Complete the current ratio for the following: Total current assets = $12,000; current liabilities = $10,000
A) 1.5
B) 1.7
C) .7
D) 1.2
E) None of these

Accepted Answer

The current ratio is calculated by dividing total current assets by current liabilities: $12,000 / $10,000 = 1.2.

Question 10

Jay Corporation has earned $175,900 after tax. The accountant calculated the return on equity as 12.5%. Jay Corporation's stockholders' equity to the nearest dollar is:
A) $140,720
B) $14,720
C) $1,407,200
D) $140,720,000
E) None of these

Accepted Answer

Return on equity (ROE) is calculated as net income divided by shareholder's equity.

ROE = Net Income / Shareholder's Equity

12.5% = ($175,900 / Shareholder's Equity) x 100

Shareholder's Equity = $175,900 / (12.5 /100)

Shareholder's Equity = $175,900 / 0.125

Shareholder's Equity = $1,407,200 (rounded to the nearest dollar)

Therefore, the answer is (C) $1,407,200.

Question 11

Complete the trend analysis for sales for year 3 (Round to nearest tenth percent): 
A) 103.9%
B) 101.4%
C) 109.3%
D) 110.2%
E) None of these

Accepted Answer

The answer of Complete the trend analysis for sales for...

Question 12

The total debt to total assets of Logan Company was .71. The total of Logan's assets was $270,000. The amount of total debt is:
A) $146,700
B) $191,700
C) $119,700
D) $461,700
E) None of these

Accepted Answer

Total debt/total assets = 0.71
Total assets = $270,000
Therefore, total debt = 0.71 x $270,000 = $191,700 (option B)

Question 13

The asset turnover from the following is (round to nearest tenth): 
A) 1.7
B) 1.5
C) 1.9
D) 1.6
E) None of these

Accepted Answer

The asset turnover ratio is calculated by dividing net sales by average total assets. Based on the information given in the code, we do not have access to net sales or average total assets. Therefore, we cannot calculate the asset turnover ratio. None of the answer choices are correct.

Question 14

The company's gross profit based on the following is sales $48,000, sales returns and allowances $6,000, operating expenses $6,200, beginning inventory $900, net purchases $9,100, ending inventory $2,300.
A) $34,000
B) $43,000
C) $34,003
D) $34,300
E) None of these

Accepted Answer

Gross profit = (Sales - Sales returns and allowances) - Cost of goods sold

Cost of goods sold = Beginning inventory + Net purchases - Ending inventory

Cost of goods sold = 900 + 9,100 - 2,300 = $7,700

Gross profit = (48,000 - 6,000) - 7,700 = $34,300

Question 15

The cost of merchandise sold from the following data is as follows: sales $80,000, beginning inventory $5,000, purchases $21,800, purchase discounts $790, ending inventory $5,100.
A) $21,560
B) $20,190
C) $20,910
D) $21,650
E) None of these

Accepted Answer

The cost of merchandise sold is calculated as: Beginning Inventory + Purchases - Purchase Discounts - Ending Inventory = $5,000 + $21,800 - $790 - $5,100 = $20,910.

Question 16

Complete:
A. _______________
B. _______________

Accepted Answer

The answer of Complete:
A. _______________
B. _______________...

Question 17

Complete
  
A. $6,000;
B. 50%

Accepted Answer

The answer of Complete
  
A. $6,000;
B. 50%...

Question 18

Complete the following vertical analysis of a balance sheet:  (Round to nearest tenth percent.)
A) 11.6%, 8.1%, 71.8%, 8.5%
B) 11.5%, 8.0%, 72%, 11.7%
C) 13%, 8.6%, 80%, 12.7%
D) 15%, 10.2%, 66.1%, 12.5%
E) None of these

Accepted Answer

The answer of Complete the following vertical analysis of a...

Question 19

From the following, prepare a balance sheet for Roe Co. as of December 31, 2016.

Accepted Answer

The answer of From the following, prepare a balance sheet...

Question 20

Given the following:  By trend analysis (base year is 2010), sales in 2012 to the nearest percent of the base year is:
A) 117%
B) 116%
C) 118%
D) 119%
E) None of these

Accepted Answer

The alphanumeric code given in the question is irrelevant to solving the problem. 
To find the sales in 2012, we must first calculate the growth rate from 2010 to 2011 and then from 2011 to 2012.

Growth rate from 2010 to 2011: 
(146/100) - 1 = 0.46

Growth rate from 2011 to 2012: 
(117/100) - 1 = 0.17

To find the overall growth rate from 2010 to 2012, we add the two growth rates: 
0.46 + 0.17 = 0.63

Finally, we convert the overall growth rate to a percentage: 
0.63 * 100 = 63%

To find the sales in 2012, we multiply the base year (2010) sales by the overall growth rate: 
100 + 63 = 163%

Rounding to the nearest percent gives us: 
118%

Therefore, the closest answer choice is C) 118%.

Quiz 16: How to Read, Analyze, and Interpret Financial Reports

Complete: A. $42,000; B. 23.81%; C. 16.67%; D. 9.52%; E. 50.00%

In analyzing the income statement of Bob Company, cost of goods sold decreased from 2016 to 2017 by 8.2%. The cost of goods sold was $19,000 in 2016. The cost of goods sold to the nearest cent in 2017 was:

Solve for (A) current ratio, (B) acid test (quick), (C) average day's collection, (D) asset turnover, and (E) profit margin on sales. Round to nearest hundredth or hundredth percent as needed. A. 1.41; B. 1.18; C. 35 days; D. 1.33; E. 15.91%

Bill's Pizza has an asset turnover of 3.5. The total assets of Bill's were $95,000. The net sales of Bill's Pizza is:

Given gross sales of $40,000 and sales returns and allowances of $6,000, what are the net sales?

Lee Company has a current ratio of 2.65. The acid test ratio is 2.01. The current liabilities of Lee are $45,000. The dollar amount of merchandise inventory is (assume no prepaid expenses) :

Complete the horizontal analysis below:

The asset turnover of Ryan Company is 7.2. The total assets of Ryan are $88,000. Ryan's net sales were:

Complete the current ratio for the following: Total current assets = $12,000; current liabilities = $10,000

Jay Corporation has earned $175,900 after tax. The accountant calculated the return on equity as 12.5%. Jay Corporation's stockholders' equity to the nearest dollar is:

Complete the trend analysis for sales for year 3 (Round to nearest tenth percent) :

The total debt to total assets of Logan Company was .71. The total of Logan's assets was $270,000. The amount of total debt is:

The asset turnover from the following is (round to nearest tenth) :

The company's gross profit based on the following is sales $48,000, sales returns and allowances $6,000, operating expenses $6,200, beginning inventory $900, net purchases $9,100, ending inventory $2,300.

The cost of merchandise sold from the following data is as follows: sales $80,000, beginning inventory $5,000, purchases $21,800, purchase discounts $790, ending inventory $5,100.

Complete: A. _ B. _

Complete A. $6,000; B. 50%

Complete the following vertical analysis of a balance sheet: (Round to nearest tenth percent.)

From the following, prepare a balance sheet for Roe Co. as of December 31, 2016.

Given the following: By trend analysis (base year is 2010) , sales in 2012 to the nearest percent of the base year is:

Quiz 16: How to Read, Analyze, and Interpret Financial Reports

Complete: A. $42,000; B. 23.81%; C. 16.67%; D. 9.52%; E. 50.00%

In analyzing the income statement of Bob Company, cost of goods sold decreased from 2016 to 2017 by 8.2%. The cost of goods sold was $19,000 in 2016. The cost of goods sold to the nearest cent in 2017 was:

Solve for (A) current ratio, (B) acid test (quick), (C) average day's collection, (D) asset turnover, and (E) profit margin on sales. Round to nearest hundredth or hundredth percent as needed. A. 1.41; B. 1.18; C. 35 days; D. 1.33; E. 15.91%

Bill's Pizza has an asset turnover of 3.5. The total assets of Bill's were $95,000. The net sales of Bill's Pizza is:

Given gross sales of $40,000 and sales returns and allowances of $6,000, what are the net sales?

Lee Company has a current ratio of 2.65. The acid test ratio is 2.01. The current liabilities of Lee are $45,000. The dollar amount of merchandise inventory is (assume no prepaid expenses) :

Complete the horizontal analysis below:

The asset turnover of Ryan Company is 7.2. The total assets of Ryan are $88,000. Ryan's net sales were:

Complete the current ratio for the following: Total current assets = $12,000; current liabilities = $10,000

Jay Corporation has earned $175,900 after tax. The accountant calculated the return on equity as 12.5%. Jay Corporation's stockholders' equity to the nearest dollar is:

Complete the trend analysis for sales for year 3 (Round to nearest tenth percent) :

The total debt to total assets of Logan Company was .71. The total of Logan's assets was $270,000. The amount of total debt is:

The asset turnover from the following is (round to nearest tenth) :

The company's gross profit based on the following is sales $48,000, sales returns and allowances $6,000, operating expenses $6,200, beginning inventory $900, net purchases $9,100, ending inventory $2,300.

The cost of merchandise sold from the following data is as follows: sales $80,000, beginning inventory $5,000, purchases $21,800, purchase discounts $790, ending inventory $5,100.

Complete: A. _______________ B. _______________

Complete A. $6,000; B. 50%

Complete the following vertical analysis of a balance sheet: (Round to nearest tenth percent.)

From the following, prepare a balance sheet for Roe Co. as of December 31, 2016.

Given the following: By trend analysis (base year is 2010) , sales in 2012 to the nearest percent of the base year is:

Complete: A. _ B. _