171.
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 inventory turnover for Year 2 is closest to:
13–446
172.
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 sale period (turnover in days) for Year 2 is closest to:
13–448
13–449
173.
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 operating cycle for Year 2 is closest to:
13–450
174.
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 total asset turnover for Year 2 is closest to:
13–452
13–453
175.
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 accounts receivable turnover for Year 2 is closest to:
13–455
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:
13–457
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:
13–459
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:
13–461
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
13–462
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:
13–463
13–464
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