13-161
176. Dahn Corporation has provided the following financial data:
Balance Sheet
December 31, Year 2 and Year 1
Assets Year 2 Year 1
Current assets:
Cash $227,000 $150,000
Accounts receivable 134,000 130,000
Inventory 150,000 130,000
Prepaid expenses 83,000 80,000
Total current assets 594,000 490,000
Plant and equipment, net 769,000 840,000
Total assets $1,363,000 $1,330,000
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $200,000 $180,000
Accrued liabilities 63,000 70,000
Notes payable, short term 71,000 60,000
Total current liabilities 334,000 310,000
Bonds payable 290,000 290,000
Total liabilities 624,000 600,000
Stockholders’ equity:
Common stock, $5 par value 400,000 400,000
Additional paid-in capital-common stock 50,000 50,000
Retained earnings 289,000 280,000
Total stockholders’ equity 739,000 730,000
Total liabilities & stockholders’ equity $1,363,000 $1,330,000
Income Statement—Year 2
For the Year Ended December 31, Year 2
Sales (all on account) $1,370,000
Cost of goods sold 850,000
Gross margin 520,000
Operating expenses 482,692
Net operating income 37,308
Interest expense 21,000
Net income before taxes 16,308
Income taxes (35%) 5,708
Net income $10,600
Dividends on common stock during Year 2 totaled $1,600. The market price of common stock at
the end of Year 2 was $2.37 per share.
The company’s average collection period (age of receivables) for Year 2 is closest to:
13-163
177. Dahn Corporation has provided the following financial data:
Balance Sheet
December 31, Year 2 and Year 1
Assets Year 2 Year 1
Current assets:
Cash $227,000 $150,000
Accounts receivable 134,000 130,000
Inventory 150,000 130,000
Prepaid expenses 83,000 80,000
Total current assets 594,000 490,000
Plant and equipment, net 769,000 840,000
Total assets $1,363,000 $1,330,000
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $200,000 $180,000
Accrued liabilities 63,000 70,000
Notes payable, short term 71,000 60,000
Total current liabilities 334,000 310,000
Bonds payable 290,000 290,000
Total liabilities 624,000 600,000
Stockholders’ equity:
Common stock, $5 par value 400,000 400,000
Additional paid-in capital-common stock 50,000 50,000
Retained earnings 289,000 280,000
Total stockholders’ equity 739,000 730,000
Total liabilities & stockholders’ equity $1,363,000 $1,330,000
Income Statement—Year 2
For the Year Ended December 31, Year 2
Sales (all on account) $1,370,000
Cost of goods sold 850,000
Gross margin 520,000
Operating expenses 482,692
Net operating income 37,308
Interest expense 21,000
Net income before taxes 16,308
Income taxes (35%) 5,708
Net income $10,600
Dividends on common stock during Year 2 totaled $1,600. The market price of common stock at
the end of Year 2 was $2.37 per share.
The company’s inventory turnover for Year 2 is closest to:
13-165
178. Dahn Corporation has provided the following financial data:
Balance Sheet
December 31, Year 2 and Year 1
Assets Year 2 Year 1
Current assets:
Cash $227,000 $150,000
Accounts receivable 134,000 130,000
Inventory 150,000 130,000
Prepaid expenses 83,000 80,000
Total current assets 594,000 490,000
Plant and equipment, net 769,000 840,000
Total assets $1,363,000 $1,330,000
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $200,000 $180,000
Accrued liabilities 63,000 70,000
Notes payable, short term 71,000 60,000
Total current liabilities 334,000 310,000
Bonds payable 290,000 290,000
Total liabilities 624,000 600,000
Stockholders’ equity:
Common stock, $5 par value 400,000 400,000
Additional paid-in capital-common stock 50,000 50,000
Retained earnings 289,000 280,000
Total stockholders’ equity 739,000 730,000
Total liabilities & stockholders’ equity $1,363,000 $1,330,000
Income Statement—Year 2
For the Year Ended December 31, Year 2
Sales (all on account) $1,370,000
Cost of goods sold 850,000
Gross margin 520,000
Operating expenses 482,692
Net operating income 37,308
Interest expense 21,000
Net income before taxes 16,308
Income taxes (35%) 5,708
Net income $10,600
Dividends on common stock during Year 2 totaled $1,600. The market price of common stock at
the end of Year 2 was $2.37 per share.
The company’s average sale period (turnover in days) for Year 2 is closest to:
13-167
179. Dahn Corporation has provided the following financial data:
Balance Sheet
December 31, Year 2 and Year 1
Assets Year 2 Year 1
Current assets:
Cash $227,000 $150,000
Accounts receivable 134,000 130,000
Inventory 150,000 130,000
Prepaid expenses 83,000 80,000
Total current assets 594,000 490,000
Plant and equipment, net 769,000 840,000
Total assets $1,363,000 $1,330,000
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $200,000 $180,000
Accrued liabilities 63,000 70,000
Notes payable, short term 71,000 60,000
Total current liabilities 334,000 310,000
Bonds payable 290,000 290,000
Total liabilities 624,000 600,000
Stockholders’ equity:
Common stock, $5 par value 400,000 400,000
Additional paid-in capital-common stock 50,000 50,000
Retained earnings 289,000 280,000
Total stockholders’ equity 739,000 730,000
Total liabilities & stockholders’ equity $1,363,000 $1,330,000
Income Statement—Year 2
For the Year Ended December 31, Year 2
Sales (all on account) $1,370,000
Cost of goods sold 850,000
Gross margin 520,000
Operating expenses 482,692
Net operating income 37,308
Interest expense 21,000
Net income before taxes 16,308
Income taxes (35%) 5,708
Net income $10,600
Dividends on common stock during Year 2 totaled $1,600. The market price of common stock at
the end of Year 2 was $2.37 per share.
The company’s operating cycle for Year 2 is closest to:
13-169
180. Dahn Corporation has provided the following financial data:
Balance Sheet
December 31, Year 2 and Year 1
Assets Year 2 Year 1
Current assets:
Cash $227,000 $150,000
Accounts receivable 134,000 130,000
Inventory 150,000 130,000
Prepaid expenses 83,000 80,000
Total current assets 594,000 490,000
Plant and equipment, net 769,000 840,000
Total assets $1,363,000 $1,330,000
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $200,000 $180,000
Accrued liabilities 63,000 70,000
Notes payable, short term 71,000 60,000
Total current liabilities 334,000 310,000
Bonds payable 290,000 290,000
Total liabilities 624,000 600,000
Stockholders’ equity:
Common stock, $5 par value 400,000 400,000
Additional paid-in capital-common stock 50,000 50,000
Retained earnings 289,000 280,000
Total stockholders’ equity 739,000 730,000
Total liabilities & stockholders’ equity $1,363,000 $1,330,000
Income Statement—Year 2
For the Year Ended December 31, Year 2
Sales (all on account) $1,370,000
Cost of goods sold 850,000
Gross margin 520,000
Operating expenses 482,692
Net operating income 37,308
Interest expense 21,000
Net income before taxes 16,308
Income taxes (35%) 5,708
Net income $10,600
Dividends on common stock during Year 2 totaled $1,600. The market price of common stock at
the end of Year 2 was $2.37 per share.
The company’s total asset turnover for Year 2 is closest to:
181. Guttery Corporation has provided the following financial data from its balance sheet:
Year 2 Year 1
Accounts receivable $112,000 $110,000
Inventory $174,000 $150,000
Total assets $1,236,000 $1,250,000
Sales on account in Year 2 totaled $1,450,000 and cost of goods sold totaled $900,000.
The company’s accounts receivable turnover for Year 2 is closest to:
182. Guttery Corporation has provided the following financial data from its balance sheet:
Year 2 Year 1
Accounts receivable $112,000 $110,000
Inventory $174,000 $150,000
Total assets $1,236,000 $1,250,000
Sales on account in Year 2 totaled $1,450,000 and cost of goods sold totaled $900,000.
The company’s average collection period (age of receivables) for Year 2 is closest to:
183. Guttery Corporation has provided the following financial data from its balance sheet:
Year 2 Year 1
Accounts receivable $112,000 $110,000
Inventory $174,000 $150,000
Total assets $1,236,000 $1,250,000
Sales on account in Year 2 totaled $1,450,000 and cost of goods sold totaled $900,000.
The company’s inventory turnover for Year 2 is closest to:
184. Guttery Corporation has provided the following financial data from its balance sheet:
Year 2 Year 1
Accounts receivable $112,000 $110,000
Inventory $174,000 $150,000
Total assets $1,236,000 $1,250,000
Sales on account in Year 2 totaled $1,450,000 and cost of goods sold totaled $900,000.
The company’s average sale period (turnover in days) for Year 2 is closest to:
185. Guttery Corporation has provided the following financial data from its balance sheet:
Year 2 Year 1
Accounts receivable $112,000 $110,000
Inventory $174,000 $150,000
Total assets $1,236,000 $1,250,000
Sales on account in Year 2 totaled $1,450,000 and cost of goods sold totaled $900,000.
The company’s operating cycle for Year 2 is closest to:
186. Guttery Corporation has provided the following financial data from its balance sheet:
Year 2 Year 1
Accounts receivable $112,000 $110,000
Inventory $174,000 $150,000
Total assets $1,236,000 $1,250,000
Sales on account in Year 2 totaled $1,450,000 and cost of goods sold totaled $900,000.
The company’s total asset turnover for Year 2 is closest to:
13-177
187. Mahoe Corporation has provided the following financial data:
Balance Sheet
December 31, Year 2 and Year 1
Assets Year 2 Year 1
Current assets:
Cash $105,000 $190,000
Accounts receivable 255,000 220,000
Inventory 206,000 200,000
Prepaid expenses 44,000 50,000
Total current assets 610,000 660,000
Plant and equipment, net 1,065,000 970,000
Total assets $1,675,000 $1,630,000
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $119,000 $110,000
Accrued liabilities 88,000 80,000
Notes payable, short term 53,000 50,000
Total current liabilities 260,000 240,000
Bonds payable 110,000 110,000
Total liabilities 370,000 350,000
Stockholders’ equity:
Common stock, $5 par value 250,000 250,000
Additional paid-in capital-common stock 70,000 70,000
Retained earnings 985,000 960,000
Total stockholders’ equity 1,305,000 1,280,000
Total liabilities & stockholders’ equity $1,675,000 $1,630,000
Income Statement—Year 2
For the Year Ended December 31, Year 2
Sales (all on account) $1,330,000
Cost of goods sold 890,000
Gross margin 440,000
Operating expenses 393,571
Net operating income 46,429
Interest expense 10,000
Net income before taxes 36,429
Income taxes (30%) 10,929
Net income $25,500
Dividends on common stock during Year 2 totaled $500. The market price of common stock at
the end of Year 2 was $8.06 per share.
The company’s operating cycle for Year 2 is closest to:
13-179
188. Mahoe Corporation has provided the following financial data:
Balance Sheet
December 31, Year 2 and Year 1
Assets Year 2 Year 1
Current assets:
Cash $105,000 $190,000
Accounts receivable 255,000 220,000
Inventory 206,000 200,000
Prepaid expenses 44,000 50,000
Total current assets 610,000 660,000
Plant and equipment, net 1,065,000 970,000
Total assets $1,675,000 $1,630,000
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $119,000 $110,000
Accrued liabilities 88,000 80,000
Notes payable, short term 53,000 50,000
Total current liabilities 260,000 240,000
Bonds payable 110,000 110,000
Total liabilities 370,000 350,000
Stockholders’ equity:
Common stock, $5 par value 250,000 250,000
Additional paid-in capital-common stock 70,000 70,000
Retained earnings 985,000 960,000
Total stockholders’ equity 1,305,000 1,280,000
Total liabilities & stockholders’ equity $1,675,000 $1,630,000
Income Statement—Year 2
For the Year Ended December 31, Year 2
Sales (all on account) $1,330,000
Cost of goods sold 890,000
Gross margin 440,000
Operating expenses 393,571
Net operating income 46,429
Interest expense 10,000
Net income before taxes 36,429
Income taxes (30%) 10,929
Net income $25,500
Dividends on common stock during Year 2 totaled $500. The market price of common stock at
the end of Year 2 was $8.06 per share.
The company’s total asset turnover for Year 2 is closest to: