Question 1

The income statement for Otto Construction Company appears below:
 $\begin{array}{lr}
\text { Net sales all credit sales } & \$ 180,000 \
\text { Cost of Goods Sold } & \underline{100,000} \
\text { Gross margin } & 80,000 \
\text { Operating expenses } & 30,000 \
\text { Interest expense } & \underline{12,000} \
\text { Net income before taxes } & 38,000 \
\text { Income tax } &\underline{9,500} \
\text { Net income } & \underline{\underline{\$ 28,500}}
\end{array}$ Average total assets total $240,000.Otto's income tax rate is 25%.
What is the gross margin percentage?

Accepted Answer

The answer of The income statement for Otto Construction Company...

Question 2

Foreman Outfitters,a retail store of camping supplies,has sales of $300,000 and cost of goods sold of $210,000.Beginning inventory was $20,000 and ending inventory was $12,000.What is the company's average days to sell inventory?

Accepted Answer

The answer of Foreman Outfitters,a retail store of camping supplies,has...

Question 3

Gant Wholesale Company has $2,000 in cash,$20,000 in accounts receivable,$34,000 in inventory,and $1,600 in prepaid expenses.Liabilities totaled $120,000,with $36,000 current and $84,000 long-term.What is Gant's current ratio?

Accepted Answer

The answer of Gant Wholesale Company has $2,000 in cash,$20,000...

Question 4

Foreman Outfitters,a retail store of camping supplies,has total assets of $170,000 and total liabilities of $70,000.What is Foreman's debt-to-equity ratio?

Accepted Answer

The answer of Foreman Outfitters,a retail store of camping supplies,has...

Question 5

The income statement for Otto Construction Company appears below:
 $\begin{array}{lr}
\text { Net sales all credit sales } & \$ 180,000 \
\text { Cost of Goods Sold } & \underline{100,000} \
\text { Gross margin } & 80,000 \
\text { Operating expenses } & 30,000 \
\text { Interest expense } & \underline{12,000} \
\text { Net income before taxes } & 38,000 \
\text { Income tax } &\underline{9,500} \
\text { Net income } & \underline{\underline{\$ 28,500}}
\end{array}$ Average total assets total $240,000.Otto's income tax rate is 25%.
What is the return on assets?

Accepted Answer

The answer of The income statement for Otto Construction Company...

Question 6

Numerous resources are available to assist in developing an understanding of a company's competitive environment.The U.S.Census Bureau collects a wide array of statistics and makes them available through which of the following cites?

Accepted Answer

The U.S. Census Bureau collects and makes available statistical data through their official website at http://www.census.gov/. Option B, C, and D are not valid websites for the U.S. Census Bureau.

Question 7

ABC Corporation reported net income of $26,000 last year.The company reported earnings per share of $2.80.ABC paid dividends of $1.75 on each share of outstanding stock.What was ABC's dividend payout ratio?

Accepted Answer

The answer of ABC Corporation reported net income of $26,000...

Question 8

Barber Industries reported net sales of $92,000,net income of $32,000,dividends paid to preferred stockholders of $7,000,dividends paid to common stockholders of $10,000,average number of shares outstanding is 5,000 and average common stockholders' equity of $96,000.What is the return on common stockholders' equity?

Accepted Answer

The answer of Barber Industries reported net sales of $92,000,net...

Question 9

Gant Wholesale Company has $2,000 in cash,$7,000 in accounts receivable,$12,000 in inventory,and $3,000 in prepaid expenses.Liabilities totaled $20,000,with $6,000 current and $14,000 long-term.What is Gant's acid-test ratio?

Accepted Answer

The answer of Gant Wholesale Company has $2,000 in cash,$7,000...

Question 10

Barber Industries reported net sales of $92,000,net income of $32,000,dividends paid to preferred stockholders of $7,000,dividends paid to common stockholders of $10,000,average number of shares outstanding is 5,000.What is the earnings per share?

Accepted Answer

The answer of Barber Industries reported net sales of $92,000,net...

Question 11

Barber Industries reported net income of $32,000,earnings per share of $2,and paid dividends of $3 per share or a total of $3,000.The stock sells for $20 per share.What is the price/earnings ratio?

Accepted Answer

The answer of Barber Industries reported net income of $32,000,earnings...

Question 12

Gant Wholesale Company has $2,000 in cash,$7,000 in accounts receivable,$12,000 in inventory,and $3,000 in prepaid expenses.Liabilities totaled $20,000,with $6,000 current and $14,000 long-term.What is Gant's working capital?

Accepted Answer

The answer of Gant Wholesale Company has $2,000 in cash,$7,000...

Question 13

XYZ Corporation reported net income of $75,700 last year.The company incurred interest expense of $5,000.Assets on January 1^st were $640,000 and on December 31^st,had increased by $40,000.The income tax rate was 30%.What is XYZ's return on total assets?

Accepted Answer

The answer of XYZ Corporation reported net income of $75,700...

Question 14

Barber Industries reported net income of $32,000,earnings per share of $1.20 and paid dividends of $0.30 per share.What is the dividend payout ratio?

Accepted Answer

The answer of Barber Industries reported net income of $32,000,earnings...

Question 15

Walker Company had net income of $30,000.The company has 10,000 shares of common stock and 3,000 shares of preferred stock outstanding.There was no change in the number of shares of stock from the previous year.The company declared and paid dividends of $2.00 per share on the common stock and $1.70 per share on the preferred stock.What is Walker's earning per common share?

Accepted Answer

The answer of Walker Company had net income of $30,000.The...

Question 16

Hannah Corporation purchased merchandise totaling $180,000 during the year.At the end of the year,the income statement showed $200,000 of cost of goods sold and ending inventory to $40,000.What was Hannah's inventory turnover?

Accepted Answer

The answer of Hannah Corporation purchased merchandise totaling $180,000 during...

Question 17

The 2013 and 2014 balance sheets for Ottoman Manufacturing Company appear below:
 $$\begin{array}{lrr}
& \underline{2013} & \underline{2014} \
\text{Current Assets} \
\text{~~Cash} & \$ 16,000 & \$ 15,000 \
\text{~~Accounts Receivable, net} & 20,000 & 19,000 \
\text{~~Inventory} & \underline{30,000} & \underline{28,000} \
\text{Total Current Assets} & 66,000 & 62,000 \
\text{Plant \& Equipment, net} & \underline{60,000} & \underline{40,000} \
\text{Total Assets} & \underline{126,000} & \underline{102,000} \\
\text{Current Liabilities} & 20,000 & 30,000 \
\text{Noncurrent Liabilities} & \underline{60,000} & \underline{40,000} \
\text{Total Liabilities} & 80,000 & 70,000 \
\text{Stockholders' Equity} \
\text{~~Common Stock} & 2,000 & 2,000 \
\text{~~Additional Paid-In Capital} & 4,000 & 4,000 \
\text{~~Retained Earnings} & \underline{40,000} & \underline{26,000} \
\text{Total Stockholders' Equity} & \underline{46,000} & \underline{32,000} \
\text{Total liabilities and Stockholders' Equity} & \underline{\underline{\$126,000}} & \underline{\underline{\$102.000}} \
\end{array}$$ What is the debt ratio for 2014?

Accepted Answer

The answer of The 2013 and 2014 balance sheets for...

Question 18

Last year Boxer Corporation had net income of $24,000,income tax expense of $7,200 and interest expense of $2,000.What is Boxer's times interest earned ratio?

Accepted Answer

The answer of Last year Boxer Corporation had net income...

Question 19

The income statement for Otto Construction Company appear below:
 $\begin{array}{lr}
\text { Net sales all credit sales } & \$ 180,000 \
\text { Cost of Goods Sold } & \underline{100,000} \
\text { Gross margin } & 80,000 \
\text { Operating expenses } & 30,000 \
\text { Interest expense } & \underline{12,000} \
\text { Net income before taxes } & 38,000 \
\text { Income tax } & \underline{9,500} \
\text { Net income } & \underline{\underline{\$ 28,500}}
\end{array}$ Average total assets total $240,000.Otto's income tax rate is 25%.
What is the times interest earned ratio?

Accepted Answer

The answer of The income statement for Otto Construction Company...

Question 20

The 2013 and 2014 partial balance sheets for Ottoman Manufacturing Company appear below:
 $$\begin{array}{lrr}
& \underline{2013} & \underline{2014} \
\text{Current Liabilities} & 20,000 & 30,000 \
\text{Noncurrent Liabilities} & \underline{60,000} & \underline{40,000} \
\text{Total Liabilities} & 80,000 & 70,000 \
\text{Stockholders' Equity} \
\text{~~Common Stock} & 2,000 & 2,000 \
\text{~~Additional Paid-In Capital} & 4,000 & 4,000 \
\text{~~Retained Earnings} & \underline{40,000} & \underline{26,000} \
\text{Total Stockholders' Equity} & \underline{46,000} & \underline{32,000} \
\text{Total liabilities and Stockholders' Equity} & \underline{\underline{\$126,000}} & \underline{\underline{\$102,000}} \

\end{array}$$ What is the debt-to-equity ratio for 2014?

Accepted Answer

The answer of The 2013 and 2014 partial balance sheets...

Quiz 12: Financial Statement Analysis

Foreman Outfitters,a retail store of camping supplies,has sales of $300,000 and cost of goods sold of $210,000.Beginning inventory was $20,000 and ending inventory was $12,000.What is the company's average days to sell inventory?

Gant Wholesale Company has $2,000 in cash,$20,000 in accounts receivable,$34,000 in inventory,and $1,600 in prepaid expenses.Liabilities totaled $120,000,with $36,000 current and $84,000 long-term.What is Gant's current ratio?

Foreman Outfitters,a retail store of camping supplies,has total assets of $170,000 and total liabilities of $70,000.What is Foreman's debt-to-equity ratio?

Numerous resources are available to assist in developing an understanding of a company's competitive environment.The U.S.Census Bureau collects a wide array of statistics and makes them available through which of the following cites?

ABC Corporation reported net income of $26,000 last year.The company reported earnings per share of $2.80.ABC paid dividends of $1.75 on each share of outstanding stock.What was ABC's dividend payout ratio?

Gant Wholesale Company has $2,000 in cash,$7,000 in accounts receivable,$12,000 in inventory,and $3,000 in prepaid expenses.Liabilities totaled $20,000,with $6,000 current and $14,000 long-term.What is Gant's acid-test ratio?

Barber Industries reported net sales of $92,000,net income of $32,000,dividends paid to preferred stockholders of $7,000,dividends paid to common stockholders of $10,000,average number of shares outstanding is 5,000.What is the earnings per share?

Barber Industries reported net income of $32,000,earnings per share of $2,and paid dividends of $3 per share or a total of $3,000.The stock sells for $20 per share.What is the price/earnings ratio?

Gant Wholesale Company has $2,000 in cash,$7,000 in accounts receivable,$12,000 in inventory,and $3,000 in prepaid expenses.Liabilities totaled $20,000,with $6,000 current and $14,000 long-term.What is Gant's working capital?

XYZ Corporation reported net income of $75,700 last year.The company incurred interest expense of $5,000.Assets on January 1st were $640,000 and on December 31st,had increased by $40,000.The income tax rate was 30%.What is XYZ's return on total assets?

Barber Industries reported net income of $32,000,earnings per share of $1.20 and paid dividends of $0.30 per share.What is the dividend payout ratio?

Hannah Corporation purchased merchandise totaling $180,000 during the year.At the end of the year,the income statement showed $200,000 of cost of goods sold and ending inventory to $40,000.What was Hannah's inventory turnover?

Last year Boxer Corporation had net income of $24,000,income tax expense of $7,200 and interest expense of $2,000.What is Boxer's times interest earned ratio?

XYZ Corporation reported net income of $75,700 last year.The company incurred interest expense of $5,000.Assets on January 1^st were $640,000 and on December 31^st,had increased by $40,000.The income tax rate was 30%.What is XYZ's return on total assets?