Question 1

Calculate total of (A)current assets, (B)plant assets, and (C)stockholders' equity from these selected titles: Cash $7,500, Common Stock $30,000, Retained Earnings $51,000, Prepaid Rent $12,000, Accounts Payable $1,900, Accounts Receivable $6,000, Merchandise Inventory $19,000, Land $16,000, Building $11,000.

Accepted Answer

A. 7,500 + 12,000 + 6,000 + 19,000 = 44,500; B. 16,000 + 11,000 = 27,000; C. 30,000 + 51,000 = 81,000.

Question 2

Complete:
 $$\begin{array} { | l | l | l | } 
\hline \text { Current Assets } & \text { Amount } & \begin{array} { l } 
\text { Round to Nearest Hundredth } \
\text { Percent }
\end{array} \
\hline \text { Cash } & \$ 12,000 & \text { B } \
\hline \text { Accounts Receivable } & \$ 9,000 & \text { C } \
\hline \text { Prepaid Rent } & \$ 5,000 & \text { D } \
\hline \text { Merchandise Inventory } & \$ 28,000 & \text { E } \
\hline \text { Total Current Assets } & \text { A } & 100 \% \
\hline
\end{array}$$

Accepted Answer

The answer of Complete:
 \[\begin{array} { | l | l...

Question 3

Calculate (A)net sales, (B)gross profit (C)total operating expenses, and (D)net income.
Sales returns $600, rent expense $1,700, sales discounts $1,800, depreciation expense $490, cost of merchandise sold $7,200, gross sales $19,900, advertising expense $650, salary expense $2,500, heat expense $850.

Accepted Answer

A. 19,900 - 600 - 1,800 = 17,500; B. 17,500 - 7,200 = 10,300; C. 1,700 + 490 + 650 + 2,500 + 850 = 6,190; D. 10,300 - 6,190 = 4,110.

Question 4

Complete a trend analysis for sales (round to nearest whole percent and use 2014 as the base year).
 $$\begin{array} { | c | c | c | c | c | } 
\hline & 2017 & 2016 & 2015 & 2014 \
\hline \text { Sales } & \$ 620,000 & \$ 580,000 & \$ 450,000 & \$ 600,000 \
\hline & ( \mathrm { D } ) & ( \mathrm { C } ) & ( \mathrm { B } ) & ( \mathrm { A } ) \
\hline
\end{array}$$

Accepted Answer

The answer of Complete a trend analysis for sales (round...

Question 5

Given the following:
 $$\begin{array} { | l | l | } 
\hline \text { Current Assets } & \$ 18,000 \
\hline \text { Accounts Receivable } & \$ 3,000 \
\hline \text { Current Liabilities } & \$ 16,000 \
\hline \text { Inventory } & \$ 2,000 \
\hline \text { Net Sales } & \$ 41,000 \
\hline \text { Total Assets } & \$ 29,000 \
\hline \text { Net Income } & \$ 6,000 \
\hline
\end{array}$$ Find the following (round to the nearest hundredth if needed): A. Current ratio; B. Acid test; C. Average day's collection; D. Asset turnover; E. Profit margin on sales.

Accepted Answer

The answer of Given the following:
 \[\begin{array} { | l...

Question 6

The asset turnover of Jerry's Sleepshop is 3.2. The total assets of Jerry's are $32,000. What were Jerry's net sales?

Accepted Answer

$32,000 × 3.2 = 102,400.

Question 7

Solve for (A)current ratio, (B)acid test, (C)average day's collection (360), (D)asset turnover, and (E)profit margin on sales. (Round to nearest hundredth or hundredth percent as needed.)
 $$\begin{array} { | l | l | } 
\hline \text { Current Assets } & \$ 26,000 \
\hline \text { Accounts Receivable } & \$ 4,100 \
\hline \text { Current Liabilities } & \$ 16,500 \
\hline \text { Inventory } & \$ 4,100 \
\hline \text { Net Sales } & \$ 52,000 \
\hline \text { Total Assets } & \$ 38,000 \
\hline \text { Net Income } & \$ 8,000 \
\hline
\end{array}$$

Accepted Answer

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

Question 8

Moore Corporation has earned $205,500 after tax. The return on equity for Moore Corporation is 18%. What is Moore's stockholders' equity?

Accepted Answer

$205,500/.18 = $1,141,666.67.

Question 9

From the following, prepare a balance sheet for Roe Co. as of December 31, 2017.
 $$\begin{array} { | l | l | } 
\hline \text { Salaries Payable } & 6,000 \
\hline \text { Accounts Receivable } & 9,000 \
\hline \text { Retained Earnings } & 21,000 \
\hline \text { Common Stock } & 27,000 \
\hline \text { Mortgage Note Payable } & 45,000 \
\hline \text { Prepaid Rent } & 12,000 \
\hline \text { Accounts Payable } & 19,000 \
\hline \text { Land } & 18,000 \
\hline \text { Cash } & 3,000 \
\hline \text { Merchandise Inventory } & 16,000 \
\hline \text { Building } & 60,000 \
\hline
\end{array}$$

Accepted Answer

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

Question 10

Calculate (A)net sales, (B)gross profit, (C)total operating expenses, and (D)net income.
Sales returns $850, rent expense $1,355, sales discounts $1,200, depreciation expense $510, cost of merchandise sold $6,500, gross sales $19,500, advertising expense $400, salary expense $2,100, heat expense $750.

Accepted Answer

A. 19,500 - 850 - 1,200 = 17,450; B. 17,450 - 6,500 = 10,950; C. 1,355 + 510 + 400 + 2,100 + 750 = 5,115; D. 10,950 - 5,115 = 5,835.

Question 11

The total debt to total assets of Mose Corporation was .22. Mose's total assets were $220,000. What was the amount of total debt to Mose Corporation?

Accepted Answer

$220,000 × .22 = $48,400.

Question 12

Complete using trend analysis for sales. (Round to nearest percent and use 2017 as the base year.)
 $$\begin{array} { | c | c | c | c | c | } 
\hline & 2014 & 2015 & 2016 & 2017 \
\hline \text { SALES } & \$ 179,000 & \$ 585,000 & \$ 340,000 & \$ 600,000 \
\hline & ( \mathrm { A } ) & ( \mathrm { B } ) & ( \mathrm { C } ) & ( \mathrm { D } ) \
\hline
\end{array}$$

Accepted Answer

The answer of Complete using trend analysis for sales. (Round...

Question 13

Complete:
 $$\begin{array} { | l | l | l | } 
\hline  { \text { Current Assets } } &  { \text { Amount } } & \text { Percent (round to hundredths \%) } \
\hline \text { Cash } & \$ 10,000 & \text { B } \
\hline \text { Accts Receivable } & \$ 7,000 & \text { C } \
\hline \text { Prepaid Rent } & \$ 4,000 & \text { D } \
\hline \text { Merchandise Inventory } & \$ 21,000 & \text { E } \
\hline \text { Total Current Assets } & \text { A } & 100 \% \
\hline
\end{array}$$

Accepted Answer

The answer of Complete:
 \[\begin{array} { | l | l...

Question 14

Complete the partial comparative balance sheet. Round to nearest hundredth percent.
 $$\begin{array} { | c | r | r | r | c | } 
\hline \text { Assets } & \text { Amount } & \text { Percent } & \text { Amount } & \text { Percent } \
\hline \text { Current Assets: } & & & & \
\hline \text { Cash } & \$ 6,000 & \mathrm { C } & \$ 7,000 & \mathrm { G } \
\hline \begin{array} { l } 
\text { Accounts } \
\text { Receivable }
\end{array} & \$ 3,000 & \mathrm { D } & \$ 3,500 & \mathrm { H } \
\hline \text { Merch. Inventory } & \$ 1,000 & \mathrm { E } & \$ 2,000 & \mathrm { I } \
\hline \text { Prepaid Expense } & \$ 500 & \mathrm {~F} & \$ 1,000 & \mathrm {~J} \
\hline \begin{array} { l } 
\text { Total Current } \
\text { Assets }
\end{array} & \mathrm { A } & & \mathrm { B } & \
\hline
\end{array}$$

Accepted Answer

The answer of Complete the partial comparative balance sheet. Round...

Question 15

Complete:
 $$\begin{array} { | c | c | c | c | } 
\hline 2017 & 2016 & \text { Decrease Amount } & \% \text { Decrease (to nearest hundredth) } \
\hline \$ 12,000 & \$ 16,000 & \text { A } & \text { B } \
\hline
\end{array}$$

Accepted Answer

The answer of Complete:
 \[\begin{array} { | c | c...

Question 16

Given gross sales $75,000, sales returns and allowances $4,000, beginning inventory $5,000, net purchases $9,000, ending inventory $3,000, and operating expenses $13,900, calculate:
A. Net sales
B. Cost of merchandise (goods sold)
C. Gross profit from sales
D. Net income.

Accepted Answer

The answer of Given gross sales $75,000, sales returns and...

Question 17

The cost of merchandise (goods)sold by Ryan Corporation decreased by 9.3% from 2015 to 2017. The cost of merchandise (goods)was $22,000 in 2017. What was the cost of merchandise (goods)sold in 2015?

Accepted Answer

$22,000/(100% - 9.3%)= $24,255.78.

Question 18

Calculate the total of (A)current assets, (B)plant assets, and (C)stockholders' equity.
Cash $7,000, common stock $21,000, retained earnings $41,000, prepaid rent $21,000, accounts payable $2,300, accounts receivable $4,000, merchandise inventory $18,000, total liabilities $10,800, land $25,000, building $1,900.

Accepted Answer

A. $7,000 + $21,000 + $4,000 + $18,000 = $50,000; B. $25,000 + $1,900 = $26,900; C. $21,000 + $41,000 = $62,000.

Question 19

From the following, calculate (A)net sales, (B)gross profit, (C)total operating expenses, and (D)net income: sales returns $700, rent expense $1,288, sales discounts $950, depreciation expense $600, cost of merchandise sold $7,600, gross sales $20,900, advertising expense $1,650, salary expense $2,900, heat expense $900.

Accepted Answer

A. 20,900 - 700 - 950 = 19,250; B. 19,250 - 7,600 = 11,650; C. 1,288 + 600 + 1,650 + 2,900 + 900 = 7,338; D. 11,650 - 7,338 = 4,312.

Question 20

Calculate the amount of increase or decrease and the percent change of each title (round to nearest hundredth percent):
 $$\begin{array} { | l | l | l | l | l | } 
\hline & 2017 & 2016 & \text { Amount } & \text { Percent } \
\hline \text { Cash } & \$ 15,000 & \$ 6,000 & \text { A } & \text { B } \
\hline \text { Land } & \$ 39,000 & \$ 18,500 & \text { C } & \text { D } \
\hline \text { Accounts Payable } & \$ 12,000 & \$ 4,000 & \text { E } & \text { F } \
\hline
\end{array}$$

Accepted Answer

The answer of Calculate the amount of increase or decrease...

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

The asset turnover of Jerry's Sleepshop is 3.2. The total assets of Jerry's are $32,000. What were Jerry's net sales?

Moore Corporation has earned $205,500 after tax. The return on equity for Moore Corporation is 18%. What is Moore's stockholders' equity?

The total debt to total assets of Mose Corporation was .22. Mose's total assets were $220,000. What was the amount of total debt to Mose Corporation?

Complete: $\begin{array} { | c | c | c | c | } \hline 2017 & 2016 & \text { Decrease Amount } & \% \text { Decrease (to nearest hundredth) } \\\hline \$ 12,000 & \$ 16,000 & \text { A } & \text { B } \\\hline\end{array}$

Given gross sales $75,000, sales returns and allowances $4,000, beginning inventory $5,000, net purchases $9,000, ending inventory $3,000, and operating expenses $13,900, calculate: A. Net sales B. Cost of merchandise (goods sold) C. Gross profit from sales D. Net income.

The cost of merchandise (goods)sold by Ryan Corporation decreased by 9.3% from 2015 to 2017. The cost of merchandise (goods)was $22,000 in 2017. What was the cost of merchandise (goods)sold in 2015?