A company has the following assets:
The total amount reported under Property, Plant, and Equipment would be
a.$27,500,000.
b.$22,000,000.
c.$24,500,000.
d.$23,000,000.
Anderson Inc. sells $900 of merchandise on account to Baltic Company with credit
terms of 2/10, n/30. If Baltic Company remits a check taking advantage of the discount
offered, what is the amount of Baltic Company’s check?
a.$882
b.$900
c.$810
d.$840
Which of these is not a liquidity ratio?
a.Current ratio
b.Asset turnover
c.Inventory turnover
d.Accounts receivable turnover
Tangiers Company reported a loss of $1,300 for the sale of equipment for cash. The
equipment had a cost of $32,000 and accumulated depreciation of $29,500. How much
will Tangiers report in the cash flows from investing activities section of its statement
of cash flows?
a.$1,200
b.$1,300
c.$30,700
d.$3,800
Dobler Company uses a periodic inventory system. Details for the inventory account for
the month of January 2014 are as follows:
An end of the month (1/31/2014) inventory showed that 160 units were on hand. How
many units did the company sell during January 2014?
a.60
b.160
c.200
d.240
Dodd Company is considering an investment, which will return a lump sum of
$675,000 four years from now. Below is some of the time value of money information
that Dodd has compiled that might help in planning compounded interest decisions.
To the closest dollar, what amount should Dodd Company pay for this investment to
earn a 10% return?
a.$405,000
b.$270,000
c.$461,032
d.$534,914
Herman Corporation had net income of $120,000 and paid dividends of $24,000 to
common stockholders and $20,000 to preferred stockholders in 2014. Herman
Corporation’s common stockholders’ equity at the beginning and end of 2014s was
$450,000 and $550,000, respectively. Herman Corporation’s return on common
stockholders’ equity is
a.24.0%.
b.20.0%.
c.19.2%.
d.15.2%.
Leary Corporation had net credit sales during the year of $900,000 and cost of goods
sold of $540,000. The balance in receivables at the beginning of the year was $120,000
and at the end of the year was $180,000. What was the accounts receivable turnover?
a.6.0
b.7.5
c.5.0
d.3.6
On November 1, 2013, Love Company places a new asset into service. The cost of the
asset is $45,000 with an estimated 5-year life and $5,000 salvage value at the end of its
useful life. What is the depreciation expense for 2014 if Love Company uses the
straight-line method of depreciation?
a.$2,000.
b.$8,000.
c.$1,333.
d.$4,500.
Baker Bakery Company just began business and made the following four inventory
purchases in June:
A physical count of merchandise inventory on June 30 reveals that there are 210 units
on hand. Using the FIFO inventory method, the amount allocated to ending inventory
for June is
a.$1,092
b.$1,131
c.$1,368
d.$1,386
At the beginning of June, assets totaled $45,600 and liabilities totaled $16,500. During
the year, the company earned net income of $15,000, and its assets increased by $7,000.
Stockholders’ equity increased by $3,200. How much are total liabilities at the end of
June?
a.$20,300
b.$29,100
c.$5,300
d.None of the answer choices are correct.
Travis Tucker invests $10,655.04 now for a series of $1,500 annual returns beginning
one year from now. Travis will earn 10% on the initial investment. How many annual
payments will Travis receive?
a.10
b.12
c.13
d.15
Runge Company purchased machinery on January 1 at a list price of $250,000, with
credit terms 2/10, n/30. Payment was made within the discount period. Runge paid
$12,500 sales tax on the machinery, and paid installation charges of $4,400. Prior to
installation, Runge paid $10,000 to pour a concrete slab on which to place the
machinery. What is the total cost of the new machinery?
a.$261,900.
b.$271,900.
c.$276,900.
d.$252,500.