Question 1

Burke's Office Supply has cash assets of $82,000 and accounts receivable of $94,000. Their accounts payable total $55,000. What is the acid test ratio?

Accepted Answer

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Question 2

The Smoothie Shoppe's income statement is done in Excel. Cell E8 contains net sales, Cell E17 contains cost of goods sold, and Cell E27 contains total operating expenses. What is the formula to calculate net income before federal income tax?

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Question 3

Mantilli Manufacturing has current assets worth $12.5 million and current liabilities worth $5 million. What is the current ratio?

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Question 4

The vertical analysis of a balance sheet for a coffee shop is created in Excel. Cash assets are in Cell C9 and total assets are in Cell C16. Write two ways for keying cash as a percent of total assets into Cell D9.

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Question 5

Explain how to complete a vertical analysis of an income statement.

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Question 6

The accounting equation shows the relationship among what the owner owns, owes, and is worth at all times. The equation is __________ = ____________ + ____________.

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Question 7

A construction company creates its financial statements in Excel. The net income of the company is stored in Cell B35 and the Owners Equity in C35. What formula will calculate return on investment?

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Question 8

Dr. Diana Brentwood, an optometrist, received revenue (professional fees) totaling $238,000 for the year ending December 31, 20- -. Her operating expenses were as follows: $74,800 for salaries; $1,230 for payroll taxes; $21,000 for office rent; $3,500 for depreciation of equipment; $15,000 for supplies; $4,840 for utilities; $1,750 for miscellaneous expenses; $2,100 for automobile expense; and $1,200 for equipment repair expense. Compute the total operating expenses and net profit before taxes for Dr. Brentwood's office for the year.

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Question 9

A local tire store has beginning merchandise inventory of $37,400 and ending inventory of $26,300. The store purchased $8,500 of additional merchandise for sale during the quarter, returned $720 worth of merchandise damaged during shipment, and received $600 in purchase discounts. What is the cost of goods sold for the tire store?

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Question 10

Donald Brennan has a financial planning business that received revenue totaling $212,000 for the year. His operating expenses were as follows: $99,600 for salaries; $4,980 for payroll taxes; $10,200 for office rent; $1,500 for depreciation of equipment; $12,500 for supplies; $5,040 for utilities; $2,544 for miscellaneous expenses; $6,850 for automobile expense; and $575 for equipment repair expense. Compute the total operating expenses and net profit before taxes for Donald Brennan's office for the year.

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Question 11

Henderson's Appliance Store had net income of $202,000 this year with owner's equity of $325,000. What is the return on investment for the year?

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Question 12

Mrs. Hersh owns a bakery. The gross sales for the year were $162,000. There was $670 in returned merchandise and $4,860 in sales discounts. What are the net sales for the bakery?

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Question 13

The _______________ measures how quickly a company can liquidate assets to pay off current debt.

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Question 14

Name two formatting options available in Excel that are important to include when dealing with financial statements.

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Question 15

The A-1 Sign Company has net sales of $247,000, cost of goods sold of $109,000, gross profit of $138,000, total operating expenses of $62,500, and net income of $75,500. Rounded to the nearest tenth of a percent, what would the vertical analysis of the income statement have for gross profit?

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Quiz 14: Financial Statements