english

Peter's Paintball Company sold its PeeWee division, which resulted in a $14,000 loss. If the tax rate is 18%, then what should be reported on the income statement for the loss on this disposal?

11,480

If net income on the income statement is $30,000, including depreciation of $500, and 100 shares of common stock were also sold during the year for $10,000, what is net cash provided by operations?

30,500

A store had net credit sales of $7,100,000 and cost of goods sold of $6,400,000 for the year. The average inventory for the year amounted to $600,000. The average number of days in inventory during the year was:

34.2 days

A company's net income is $50,000 and its average common stockholders' equity is $970,000. Assuming there are no preferred dividends, calculate the return on common stockholders' equity.

5%

Vangaurd Company purchased treasury stock with a cost of $55,000 during 2014. During the year, the company paid dividends of $20,000 and issued bonds payable for proceeds of $836,000. Cash flows from financing activities for 2014 total

761,000

Inventories for manufacturing and merchandising companies -

All are correct

Which of the following is a measure of solvency that is calculated by dividing net cash provided by operating activities by average total liabilities?

Cash debt coverage

Which of the following describes free cash flow

Cash provided by operations less capital expenditures and cash dividends

Which of the following does the FASB require companies to report in order to capture the gains and losses that bypass net income?

Comprehensive income

What activities and responsibilities are associated with management's functions?

Controlling

The ______ adjusts net income to find net cash provided by operating activities.

Indirect method

Sustainable income is

Net sales that has been adjusted for out-of-the-ordinary revenues, gains, expenses, and losses.

Setting goals and objectives for an entity describes -

Planning

What is horizontal analysis?

The evaluation of financial statement data over a period of time to determine the amount and/or percentage increase or decrease that has taken place.

What is another term for horizontal analysis?

Trend Analysis

In vertical analysis, what is the base for cost of goods sold?

net sales

Using the following information, compute the cost of direct materials used. Raw materials inventory, January 1 $ 30,000 Raw materials inventory, December 31 60,000 Work in process, January 1 27,000 Work in process, December 31 18,000 Finished goods, January 1 60,000 Finished goods, December 31 48,000 Raw materials purchases 1,500,000 Direct labor 690,000 Factory utilities 225,000 Indirect labor 75,000 Factory depreciation 500,000 Operating expenses 630,000

$1,470,000

Wood Company has beginning work in process inventory of $128,000 and total manufacturing costs of $477,000. If cost of goods manufactured is $480,000, what is the cost of the ending work in process inventory?

$125,000

Barton Company has beginning work in process inventory of $144,000 and total manufacturing costs of $686,000. If cost of goods manufactured is $640,000, what is the cost of the ending work in process inventory?

$190,000

Using $2,540,000 as the cost of goods manufactured, compute the cost of goods sold using the following information. Raw materials inventory, January 1 $ 20,000 Raw materials inventory, December 31 40,000 Work in process, January 1 18,000 Work in process, December 31 12,000 Finished goods, January 1 40,000 Finished goods, December 31 32,000 Raw materials purchases 1,400,000 Direct labor 560,000 Factory utilities 150,000 Indirect labor 50,000 Factory depreciation 400,000 Operating expenses 420,000

$2,548,000

Assuming that the direct materials used is $1,400,000, compute the total manufacturing costs using the following information. Raw materials inventory, January 1 $ 20,000 Raw materials inventory, December 31 40,000 Work in process, January 1 18,000 Work in process, December 31 12,000 Finished goods, January 1 40,000 Finished goods, December 31 32,000 Raw materials purchases 1,400,000 Direct labor 560,000 Factory utilities 150,000 Indirect labor 50,000 Factory depreciation 400,000 Operating expenses 420,000

$2,560,000

Tanya's Tacos has a gross income of $435,000 and extraordinary loss of $25,000. Assuming a 30% income tax rate, what amounts should be reported on the income statement as income before irregular items and an extraordinary loss, respectively?

$304,500 and ($17,500)

Costas Company has beginning and ending raw materials inventories of $64,000 and $80,000, respectively. If direct materials used were $290,000, what was the cost of raw materials purchased?

$306,000

Gammil Company has beginning and ending raw materials inventories of $96,000 and $120,000, respectively. If direct materials used were $440,000, what was the cost of raw materials purchased?

$464,000

If net income on the income statement was $10,000, including depreciation expense of $1,000, and the balance in the inventory went up by $500, what is net cash provided by operations?

10,500

If net income on the income statement was $100,000, including $10,000 of depreciation expense, what would net cash provided from operations be?

110,000

Clint's Gardening Supply used the indirect method to calculate net cash provided by operating activities. If their net income was $75,000, their depreciation expenses were $10,000, and they suffered a loss on disposal of store assets of $4,000, what amount should be added to net income?

14,000

A company had net income of $200,000 and paid dividends to common stockholders of $31,000 in 2013. The weighted average number of shares outstanding in 2013 was 6,000 shares. The company's common stock is selling for $20 per share on the New York Stock Exchange. The company's payout ratio for 2013 is:

15.5%

Seino Trading Company reported net sales of $900,000, $950,000, and $1,420,000 in the years 2013, 2014, and 2015, respectively. If 2013 is the base year, what is the trend percentage for 2015?

158%

Accounts receivable arising from sales to customers amounted to $60,000 and $45,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $180,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the Statement of Cash Flows is

195,000

A company had net income of $200,000 and paid dividends to common stockholders of $50,000 in 2013. The weighted average number of shares outstanding in 2013 was 2,000 shares. The company's common stock is selling for $80 per share on the New York Stock Exchange. The company's payout ratio for 2013 is

25%

A company reports sales data of $500,000 in 2014, $527,000 in 2015, and $559,000 in 2016. If 2014 is the base year, what is the percentage increase in sales from 2014 to 2015?

5.4%

If net income on the income statement is $50,000, including depreciation of $1,000, and the balance in inventory went down by $5,000, what is net cash provided by operations?

56,000

If net income on the income statement is $800,000, including depreciation of $1,500, and 100 shares of common stock were also sold during the year for $15,000, what is net cash provided by operations?

801,500

APS Company issued 15,000 shares of $1 par common stock for $40 per share during 2014. The company paid dividends of $36,000 and issued long-term notes payable of $330,000 during the year. What amount of cash flows from financing activities will be reported on the statement of cash flows?

894,000 net cash inflow

If net income on the income statement is $90,000, including depreciation expense of $2,000, what is net cash provided from operations?

92,000

On the Statement of Cash Flows, how are cash receipts from interest and dividends classified?

As significant non-cash activities

Cost of goods manufactured is calculated as follows:

Beginning WIP + direct materials used + direct labor + manufacturing overhead - ending WIP

On the statement of cash flows, the cash flows from operating activities section would include

Cash receipts from sales activities

Which one of the following does not appear on the balance sheet of a manufacturing company?

Cost of Goods Manufactured

How is inventory turnover calculated?

Cost of goods sold divided by the average inventory

Cash provided by operating activities divided by average current liabilities is the

Current cash debt coverage

Assume that the Fitzgerald Corporation uses the indirect method to depict cash flows. Indicate where, if at all, long-term debt retired with cash would be classified on the statement of cash flows.

Financing activities section

In vertical analysis, each item in a financial statement is expressed -

In terms of a percent of a base amount

The best indicator of a company's future performance on an income statement is

Income from operations

In vertical analysis, if income tax expense is expressed as 3.6%, what does that mean?

Income tax expense accounted for 3.6% of net sales.

What characterizes an extraordinary item?

Infrequent occurence and unusual in nature

When a company compares its current financial data with its prior year's data, it is making

Intracompany comparisons

Identify the type of activity that includes lending and collecting on loans.

Investing Activities

Which of the following is most associated with financing activities?

Issuing debt

How is patent amortization expense for the period reported using the indirect method?

It is added to income

Which of the following statements about the current ratio is true?

It is used to evaluate a company's liquidity and short-term debt-paying ability

What can occur if a company reports a net loss?

It may still show a net increase in cash.

What is the best way to measure a company's short-term ability to pay its maturing obligations and to meet unexpected needs for cash?

Liquidity ratios

Comprehensive income is

Net income plus all changes in stockholders' equity, with the exception of changes resulting from investments by stockholders and distributions to stockholders

In vertical analysis, what is generally used as the base for administrative expense?

Net sales

Assume that the Fitzgerald Corporation uses the indirect method to depict cash flows. Indicate where, if at all, accounts receivable collected would be classified on the statement of cash flows.

Operating activities section

Assume that the Fitzgerald Corporation uses the indirect method to depict cash flows. Indicate where, if at all, inventory purchased with cash would be classified on the statement of cash flows.

Operating activities section

All of the following are liquidity ratios, except:

Return on assets

In horizontal analysis, what is being analyzed?

The income statement

_________ of a company may be calculated using the price-earnings ratio

The quality of earnings

All of the following are profitability ratios, except

Times interest earned

Preferred stock issued in exchange for land would be reported in the statement of cash flows in

a separate schedule or note to the financial statements.

The category that is generally considered to be the best measure of a company's ability to continue as a going concern is

cash flows from operating activities.

Materials includes:

indirect materials, but not merchandise inventory

On the income statement, which component comes before net income?

irregular items

During 2014, Lowes Company sold equipment with a book value of $90,000 for proceeds of $109,000. The company purchased new equipment for $240,000 by signing a long-term note payable. No other transactions impacted long-term asset accounts during 2014. The investing section of the statement of cash flows will report

net cash inflows of 109,000

For inventoriable costs to become expenses under the matching principle,

the product to which they attach must be sold.