Question 1

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

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Question 2

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

Cost of Goods Sold = Beginning Inventory + Purchases - Purchase Discounts - Ending Inventory
Cost of Goods Sold = $5,000 + $21,800 - $790 - $5,100 = $20,910

Question 3

As the accountant of Roe Hairdresser, you have been asked to prepare an income statement from the following data for the month ended June 2014:

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Question 4

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 debt = 0.71 x Total assets

Total debt = 0.71 x $270,000

Total debt = $191,700

Therefore, the amount of total debt is $191,700. The correct answer is option B.

Question 5

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

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Question 6

From the following, prepare a balance sheet for Roe Co. as of December 31, 2015.

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Question 7

Mel King has asked you to prepare a classified balance sheet for Pad Co. as of December 31, 2014. Ending merchandise inventory was $1,800:

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Question 8

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

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Question 9

In analyzing the income statement of Bob Company, cost of goods sold decreased from 2013 to 2014 by 8.2%. The cost of goods sold was $19,000 in 2014. The cost of goods sold to nearest dollar in 2013 was:
A) $20,697.17
B) $20,679.71
C) $20,769.71
D) $20,796.71
E) None of these

Accepted Answer

Cost of goods sold in 2013 = $19,000 / (1 - 8.2%) = $20,697.17

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 = Net Income / Shareholders' Equity
12.5% = $175,900 / Shareholders' Equity
Shareholders' Equity = $175,900 / 0.125 = $1,407,200

Question 11

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

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

Question 12

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 can be calculated by subtracting cost of goods sold (COGS) from total sales. To calculate COGS, we need to add beginning inventory to net purchases and subtract ending inventory. 
Beginning inventory + Net purchases - Ending inventory = COGS
$900 + $9,100 - $2,300 = $7,700 COGS
Gross profit = Total sales - COGS
Gross profit = $48,000 - $7,700 = $40,300
However, the question also provided information on sales returns and allowances and operating expenses. We need to subtract these from the gross profit to get the final answer:
Gross profit - Sales returns and allowances - Operating expenses = Net profit
$40,300 - $6,000 - $6,200 = $28,100
Therefore, the correct answer is D) $34,300.

Question 13

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.

Quiz 13: How to Read, Analyze, and Interpret Financial Reports

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

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.

As the accountant of Roe Hairdresser, you have been asked to prepare an income statement from the following data for the month ended June 2014:

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:

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

From the following, prepare a balance sheet for Roe Co. as of December 31, 2015.

Mel King has asked you to prepare a classified balance sheet for Pad Co. as of December 31, 2014. Ending merchandise inventory was $1,800:

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) :

In analyzing the income statement of Bob Company, cost of goods sold decreased from 2013 to 2014 by 8.2%. The cost of goods sold was $19,000 in 2014. The cost of goods sold to nearest dollar in 2013 was:

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:

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

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.

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: