13–425
13–426
159.
Financial statements for Maraby Corporation appear below:
Maraby Corporation
Balance Sheet
December 31, Year 2 and Year 1
(dollars in thousands)
Year 2
Year 1
Current assets:
Cash and
marketable securities
$220
$190
Accounts
receivable, net
190
160
Inventory
140
150
Prepaid expenses
70
80
Total current assets
620
580
Noncurrent assets:
Plant & equipment,
net
1,180
1,150
Total assets
$1,800
$1,730
Current liabilities:
Accounts payable
$100
$120
Accrued liabilities
100
70
Notes payable, short
term
160
160
Total current liabilities
360
350
Noncurrent liabilities:
Bonds payable
450
500
Total liabilities
810
850
Stockholders’ equity:
Common stock, $5
par
160
160
Additional paid-in
capital-common stock
200
200
13–427
Retained earnings
630
520
Total stockholders’
equity
990
880
Total liabilities &
stockholders’ equity
$1,800
$1,730
Sales (all on account)
$1,960
Cost of goods sold
1,370
Gross margin
590
Selling and administrative expense
230
Net operating income
360
Interest expense
50
Net income before taxes
310
Income taxes (30%)
93
Net income
$217
Maraby Corporation’s average collection period for Year 2 was closest to:
13–428
13–429
160.
Financial statements for Maraby Corporation appear below:
Maraby Corporation
Balance Sheet
December 31, Year 2 and Year 1
(dollars in thousands)
Year 2
Year 1
Current assets:
Cash and marketable
securities
$220
$190
Accounts receivable,
net
190
160
Inventory
140
150
Prepaid expenses
70
80
Total current assets
620
580
Noncurrent assets:
Plant & equipment,
net
1,180
1,150
Total assets
$1,800
$1,730
Current liabilities:
Accounts payable
$100
$120
Accrued liabilities
100
70
Notes payable, short
term
160
160
Total current liabilities
360
350
Noncurrent liabilities:
Bonds payable
450
500
Total liabilities
810
850
Stockholders’ equity:
Common stock, $5
par
160
160
Additional paid-in
capital-common stock
200
200
Retained earnings
630
520
Total stockholders’
equity
990
880
Total liabilities &
stockholders’ equity
$1,800
$1,730
Sales (all on account)
$1,960
Cost of goods sold
1,370
Gross margin
590
Selling and administrative expense
230
Net operating income
360
Interest expense
50
Net income before taxes
310
Income taxes (30%)
93
Net income
$217
Maraby Corporation’s inventory turnover for Year 2 was closest to:
13–431
13–432
161.
Financial statements for Maraby Corporation appear below:
Maraby Corporation
Balance Sheet
December 31, Year 2 and Year 1
(dollars in thousands)
Year
2
Year
1
Current assets:
Cash and marketable
securities
$220
$190
Accounts receivable,
net
190
160
Inventory
140
150
Prepaid expenses
70
80
Total current assets
620
580
Noncurrent assets:
Plant & equipment, net
1,180
1,150
Total assets
$1,800
$1,730
Current liabilities:
Accounts payable
$100
$120
Accrued liabilities
100
70
Notes payable, short
term
160
160
Total current liabilities
360
350
Noncurrent liabilities:
Bonds payable
450
500
Total liabilities
810
850
Stockholders’ equity:
Common stock, $5 par
160
160
Additional paid-in
capital-common stock
200
200
Retained earnings
630
520
Total stockholders’
equity
990
880
Total liabilities &
stockholders’ equity
$1,800
$1,730
Sales (all on account)
$1,960
Cost of goods sold
1,370
Gross margin
590
Selling and administrative expense
230
Net operating income
360
Interest expense
50
Net income before taxes
310
Income taxes (30%)
93
Net income
$217
Maraby Corporation’s average sale period for Year 2 was closest to:
162.
Excerpts from Sydner Corporation’s most recent balance sheet appear below:
Year 2
Year 1
Current assets:
Cash
$140
$160
Accounts receivable
210
230
Inventory
240
200
Prepaid expenses
10
10
Total current assets
$600
$600
Total current liabilities
$360
$330
Sales on account in Year 2 amounted to $1,390 and the cost of goods sold was $900.
The working capital at the end of Year 2 is:
163.
Excerpts from Sydner Corporation’s most recent balance sheet appear below:
Year 2
Year 1
Current assets:
Cash
$140
$160
Accounts receivable
210
230
Inventory
240
200
Prepaid expenses
10
10
Total current assets
$600
$600
Total current liabilities
$360
$330
Sales on account in Year 2 amounted to $1,390 and the cost of goods sold was $900.
The current ratio at the end of Year 2 is closest to:
164.
Excerpts from Sydner Corporation’s most recent balance sheet appear below:
Year 2
Year 1
Current assets:
Cash
$140
$160
Accounts receivable
210
230
Inventory
240
200
Prepaid expenses
10
10
Total current assets
$600
$600
Total current liabilities
$360
$330
Sales on account in Year 2 amounted to $1,390 and the cost of goods sold was $900.
The acid-test ratio at the end of Year 2 is closest to:
165.
Excerpts from Sydner Corporation’s most recent balance sheet appear below:
Year 2
Year 1
Current assets:
Cash
$140
$160
Accounts receivable
210
230
Inventory
240
200
Prepaid expenses
10
10
Total current assets
$600
$600
Total current liabilities
$360
$330
Sales on account in Year 2 amounted to $1,390 and the cost of goods sold was $900.
The accounts receivable turnover for Year 2 is closest to:
166.
Excerpts from Sydner Corporation’s most recent balance sheet appear below:
Year 2
Year 1
Current assets:
Cash
$140
$160
Accounts receivable
210
230
Inventory
240
200
Prepaid expenses
10
10
Total current assets
$600
$600
Total current liabilities
$360
$330
Sales on account in Year 2 amounted to $1,390 and the cost of goods sold was $900.
The average collection period for Year 2 is closest to:
167.
Excerpts from Sydner Corporation’s most recent balance sheet appear below:
Year 2
Year 1
Current assets:
Cash
$140
$160
Accounts receivable
210
230
Inventory
240
200
Prepaid expenses
10
10
Total current assets
$600
$600
Total current liabilities
$360
$330
Sales on account in Year 2 amounted to $1,390 and the cost of goods sold was $900.
The inventory turnover for Year 2 is closest to:
168.
Excerpts from Sydner Corporation’s most recent balance sheet appear below:
Year 2
Year 1
Current assets:
Cash
$140
$160
Accounts receivable
210
230
Inventory
240
200
Prepaid expenses
10
10
Total current assets
$600
$600
Total current liabilities
$360
$330
Sales on account in Year 2 amounted to $1,390 and the cost of goods sold was $900.
The average sale period for Year 2 is closest to:
169.
Ribaudo Corporation has provided the following financial data from its balance sheet and
income statement:
Year 2
Year 1
Cash
$74,000
$130,000
Accounts
receivable
$255,000
$240,000
Inventory
$173,000
$180,000
Total current
assets
$564,000
$610,000
Total assets
$1,350,000
$1,330,000
Accounts
payable
$170,000
$160,000
Total liabilities
$633,000
$620,000
Total
stockholders’
equity
$717,000
$710,000
Sales (all on
account)
$1,290,000
Cost of goods
sold
$700,000
The company’s accounts receivable turnover for Year 2 is closest to:
13–442
13–443
170.
Ribaudo Corporation has provided the following financial data from its balance sheet and
income statement:
Year 2
Year 1
Cash
$74,000
$130,000
Accounts
receivable
$255,000
$240,000
Inventory
$173,000
$180,000
Total current
assets
$564,000
$610,000
Total assets
$1,350,000
$1,330,000
Accounts
payable
$170,000
$160,000
Total liabilities
$633,000
$620,000
Total
stockholders’
equity
$717,000
$710,000
Sales (all on
account)
$1,290,000
Cost of goods
sold
$700,000
The company’s average collection period (age of receivables) for Year 2 is closest to:
13–444