54. Accounts receivable turnover will normally decrease as a result of:
55. The gross margin percentage is equal to:
56. Which of the following is not a source of financial leverage?
57. Which one of the following statements about book value per share is most correct?
58. The market price of Friden Company’s common stock increased from $15 to $18.
Earnings per share of common stock remained unchanged. The company’s price-earnings ratio
would:
59. The Seabury Corporation has a current ratio of 3.5 and an acid-test ratio of 2.8. The
corporation’s current assets consist of cash, marketable securities, accounts receivable, and
inventories. Inventory equals $49,000. Seabury Corporation’s current liabilities must be:
60. Data from Fontecchio Corporation’s most recent balance sheet appear below:
Cash $18,000
Marketable securities $24,000
Accounts receivable $39,000
Short-term notes receivable $0
Inventory $60,000
Prepaid expenses $14,000
Current liabilities $120,000
The corporation’s acid-test ratio is closest to:
61. Feiler Corporation has total current assets of $483,000, total current liabilities of
$347,000, total stockholders’ equity of $1,057,000, total net plant and equipment of $1,031,000,
total assets of $1,514,000, and total liabilities of $457,000. The company’s current ratio is closest
to:
62. Gnas Corporation’s total current assets are $210,000, its noncurrent assets are $590,000,
its total current liabilities are $160,000, its long-term liabilities are $490,000, and its stockholders’
equity is $150,000. The current ratio is closest to:
63. Dratif Corporation’s working capital is $33,000 and its current liabilities are $80,000. The
corporation’s current ratio is closest to:
64. Dennisport Corporation has an acid-test ratio of 2.5. It has current liabilities of $40,000
and noncurrent assets of $70,000. The corporation’s current assets consist of cash, marketable
securities, accounts receivable, prepaid expenses, and inventory; it has no short-term notes
receivable. If Dennisport’s current ratio is 3.1, its inventory and prepaid expenses must be:
65. Calin Corporation has total current assets of $615,000, total current liabilities of
$230,000, total stockholders’ equity of $1,183,000, total net plant and equipment of $958,000,
total assets of $1,573,000, and total liabilities of $390,000. The company’s working capital is:
66. Mcrae Corporation’s total current assets are $380,000, its noncurrent assets are
$500,000, its total current liabilities are $340,000, its long-term liabilities are $250,000, and its
stockholders’ equity is $290,000. Working capital is:
67. Erastic Corporation has $14,000 in cash, $8,000 in marketable securities, $34,000 in
account receivable, $40,000 in inventories, and $42,000 in current liabilities. The corporation’s
current assets consist of cash, marketable securities, accounts receivable, and inventory. The
corporation’s acid-test ratio is closest to:
68. Windham Corporation has current assets of $400,000 and current liabilities of $500,000.
Windham Corporation’s current ratio would be increased by:
69. Stimac Corporation has total cash of $210,000, no marketable securities, total current
receivables of $281,000, total inventory of $151,000, total prepaid expenses of $53,000, total
current assets of $695,000, total current liabilities of $261,000, total stockholders’ equity of
$1,014,000, total assets of $1,415,000, and total liabilities of $401,000. The company’s acid-test
(quick) ratio is closest to:
70. Orem Corporation’s current liabilities are $75,000, its long-term liabilities are $225,000,
and its working capital is $100,000. If the corporation’s debt–to-equity ratio is 0.30, total long-
term assets must equal:
71. Irawaddy Company, a retailer, had cost of goods sold of $230,000 last year. The beginning
inventory balance was $24,000 and the ending inventory balance was $22,000. The company’s
average sale period was closest to:
72. Harris Corporation, a retailer, had cost of goods sold of $290,000 last year. The beginning
inventory balance was $26,000 and the ending inventory balance was $24,000. The corporation’s
inventory turnover was closest to:
73. Natcher Corporation’s accounts receivable at the end of Year 2 was $126,000 and its
accounts receivable at the end of Year 1 was $130,000. The company’s inventory at the end of
Year 2 was $127,000 and its inventory at the end of Year 1 was $120,000. Sales, all on account,
amounted to $1,380,000 in Year 2. Cost of goods sold amounted to $800,000 in Year 2. The
company’s operating cycle for Year 2 is closest to:
74. Kopas Corporation has provided the following data:
This Year Last Year
Accounts receivable $89,000 $107,000
Inventory $160,000 $156,000
Sales on account $627,000
Cost of goods sold $488,000
The inventory turnover for this year is closest to:
75. Granger Corporation had $180,000 in sales on account last year. The beginning accounts
receivable balance was $10,000 and the ending accounts receivable balance was $18,000. The
corporation’s average collection period was closest to:
76. During the year just ended, the retailer James Corporation purchased $425,000 of
inventory. The inventory balance at the beginning of the year was $175,000. If the cost of goods
sold for the year was $450,000, then the inventory turnover for the year was: