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:
13–307
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:
13–310
63.
Dratif Corporation’s working capital is $33,000 and its current liabilities are $80,000. The
corporation’s current ratio is closest to:
13–311
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:
13–313
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:
13–314
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:
13–316
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:
13–319
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:
13–320
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:
77.
Laverde Corporation has provided the following data:
Year 2
Year 1
Inventory
$185,000
$200,000
Total
assets
$1,489,000
$1,470,000
Sales
$1,220,000
The company’s total asset turnover for Year 2 is closest to:
78.
Spomer Corporation’s inventory at the end of Year 2 was $114,000 and its inventory at the
end of Year 1 was $120,000. Cost of goods sold amounted to $710,000 in Year 2. The
company’s inventory turnover for Year 2 is closest to:
79.
Frantic Corporation had $130,000 in sales on account last year. The beginning accounts
receivable balance was $10,000 and the ending accounts receivable balance was $16,000.
The corporation’s accounts receivable turnover was closest to:
80.
Data from Keniston Corporation’s most recent balance sheet and income statement
appear below:
This
Year
Last
Year
Accounts
receivable
$128,000
$114,000
Inventory
$228,000
$193,000
Sales on account
$813,000
Cost of goods
sold
$597,000
The average collection period for this year is closest to:
81.
Louie Corporation has provided the following data:
Year 2
Year 1
Accounts receivable
$269,000
$290,000
Inventory
$190,000
$160,000
Sales, on account
$1,340,000
Cost of goods sold
$860,000
The company’s operating cycle for Year 2 is closest to: