121) Cameron Corporation had 50,000 shares of common stock issued and outstanding that it
originally issued for $40 per share. The following information pertains to these shares:
Book value at end of current year
$
70
Market value, beginning of current year
$
85
Market value, end of current year
$
90
The total dividend on common stock for the year was $400,000. Cameron Corporation’s dividend
yield ratio for the year was:
A) 20.00%
B) 11.43%
C) 9.41%
D) 8.89%
122) Hernande Corporation has provided the following data:
Year 2
Year 1
Common stock, $4 par value
$
$
400,000
Net operating income
$
Net income before taxes
$
Net income
$
The company’s earnings per share for Year 2 is closest to:
A) $4.25 per share
B) $0.43 per share
C) $0.61 per share
D) $0.75 per share
123) Delfavero Corporation has provided the following data:
Year 2
Year 1
Common stock, $2 par value
$
$
140,000
Total stockholders’ equity
$
$
930,000
Net operating income
$
Net income before taxes
$
Net income
$
The company’s earnings per share for Year 2 is closest to:
A) $10.33 per share
B) $0.52 per share
C) $0.34 per share
D) $0.79 per share
124) Groeneweg Corporation has provided the following data:
Year 2
Year 1
Common stock, $2 par value
$
100,000
$
100,000
Total stockholders’ equity
$
1,129,000
$
1,100,000
Net operating income
$
61,538
Net income before taxes
$
51,538
Net income
$
33,500
Dividends on common stock during Year 2 totaled $4,500. The market price of common stock at
the end of Year 2 was $9.45 per share. The company’s dividend payout ratio for Year 2 is closest
to:
A) 8.7%
B) 13.4%
C) 4.5%
D) 1.0%
125) Spincic Corporation has provided the following data:
Year 2
Year 1
Common stock, $2 par value
$
$
200,000
Net operating income
$
Net income before taxes
$
Net income
$
The market price of common stock at the end of Year 2 was $4.13 per share.The company’s
price-earnings ratio for Year 2 is closest to:
A) 0.52
B) 8.10
C) 6.16
D) 12.52
126) Kovack Corporation’s net operating income in Year 2 was $66,571, net income before taxes
was $46,571, and the net income was $32,600. Total common stock was $120,000 at the end of
both Year 2 and Year 1. The par value of common stock is $2 per share. The company’s total
stockholders’ equity at the end of Year 2 amounted to $962,000 and at the end of Year 1 to
$930,000. The company declared and paid $600 dividends on common stock. The market price per
share was $4.37. The company’s dividend yield ratio for Year 2 is closest to:
A) 0.2%
B) 1.3%
C) 1.9%
D) 0.5%
127) Uhri Corporation has provided the following data:
Year 2
Year 1
Common stock, $4 par value
$
320,000
$
320,000
Net operating income
$
71,429
Net income before taxes
$
51,429
Net income
$
36,000
Dividends on common stock during Year 2 totaled $4,000. The market price of common stock at
the end of Year 2 was $6.08 per share. The company’s dividend payout ratio for Year 2 is closest
to:
A) 7.8%
B) 1.3%
C) 11.1%
D) 0.8%
128) Sabino Corporation’s total common stock was $500,000 at the end of both Year 2 and Year 1.
The par value of common stock is $5 per share. The company’s total stockholders’ equity at the end
of Year 2 amounted to $1,125,000 and at the end of Year 1 to $1,090,000. The company’s total
liabilities and stockholders’ equity at the end of Year 2 amounted to $1,581,000 and at the end of
Year 1 to $1,540,000. The company’s retained earnings at the end of Year 2 amounted to $545,000
and at the end of Year 1 to $510,000. The company’s net income in Year 2 was $39,000. The
company’s book value per share at the end of Year 2 is closest to:
A) $0.39 per share
B) $15.81 per share
C) $11.25 per share
D) $5.45 per share
129) The company’s working capital is:
A) $1,215,000
B) $542,000
C) $793,000
D) $709,000
130) The company’s current ratio is closest to:
A) 0.47
B) 0.40
C) 0.19
D) 4.25
131) The company’s acid-test (quick) ratio is closest to:
A) 2.47
B) 2.83
C) 3.10
D) 4.25
91
Macmillan Corporation has provided the following financial data:
Balance Sheet
December 31, Year 2 and Year 1
Assets
Year 2
Year 1
Current assets:
Cash
$
156,000
$
120,000
Accounts receivable, net
268,000
280,000
Inventory
146,000
130,000
Prepaid expenses
20,000
20,000
Total current assets
590,000
550,000
Plant and equipment, net
732,000
760,000
Total assets
$
1,322,000
$
1,310,000
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
$
175,000
$
180,000
Accrued liabilities
46,000
50,000
Notes payable, short term
80,000
80,000
Total current liabilities
301,000
310,000
Bonds payable
190,000
190,000
Total liabilities
491,000
500,000
Stockholders’ equity:
Common stock, $5 par value
450,000
450,000
Additional paid-in capital
70,000
70,000
Retained earnings
311,000
290,000
Total stockholders’ equity
831,000
810,000
Total liabilities & stockholders’ equity
$
1,322,000
$
1,310,000
Income Statement—Year 2
For the Year Ended December 31, Year 2
Sales (all on account)
$
1,390,000
Cost of goods sold
830,000
Gross margin
560,000
Operating expenses
500,615
Net operating income
59,385
Interest expense
16,000
Net income before taxes
43,385
Income taxes (35%)
15,185
Net income
$
28,200
Dividends on common stock during Year 2 totaled $7,200. The market price of common stock at
the end of Year 2 was $3.69 per share.
132) The company’s working capital at the end of Year 2 is:
A) $732,000
B) $831,000
C) $289,000
D) $590,000
133) The company’s current ratio at the end of Year 2 is closest to:
A) 0.83
B) 1.96
C) 0.45
D) 0.37
134) The company’s acid-test (quick) ratio at the end of Year 2 is closest to:
A) 1.96
B) 1.41
C) 1.20
D) 1.48
94
Mayfield Corporation has provided the following financial data:
Assets
Current assets:
Cash
$
223,000
Accounts receivable, net
236,000
Inventory
202,000
Prepaid expenses
10,000
Total current assets
671,000
Plant and equipment, net
665,000
Total assets
$
1,336,000
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
$
156,000
Accrued liabilities
52,000
Notes payable, short term
45,000
Total current liabilities
253,000
Bonds payable
100,000
Total liabilities
353,000
Stockholders’ equity:
Common stock, $4 par value
360,000
Additional paid-in capital
80,000
Retained earnings
543,000
Total stockholders’ equity
983,000
Total liabilities & stockholders’ equity
$
1,336,000
135) The company’s working capital is:
A) $671,000
B) $665,000
C) $418,000
D) $983,000
136) The company’s current ratio is closest to:
A) 0.26
B) 2.65
C) 0.50
D) 0.53
137) The company’s acid-test (quick) ratio is closest to:
A) 1.90
B) 1.85
C) 2.65
D) 1.81
Excerpts from Colter Corporation’s most recent balance sheet appear below:
Year 2
Year 1
Current assets:
Cash
$
90
$
120
Accounts receivable, net
100
110
Inventory
170
160
Prepaid expenses
40
40
Total current assets
400
430
Total current liabilities
$
320
$
290
Sales on account in Year 2 amounted to $1,210 and the cost of goods sold was $720.
138) The working capital at the end of Year 2 is:
A) $850
B) $770
C) $400
D) $80
139) The current ratio at the end of Year 2 is closest to:
A) 0.32
B) 0.38
C) 1.25
D) 1.20
140) The acid-test (quick) ratio at the end of Year 2 is closest to:
A) 0.72
B) 0.83
C) 0.59
D) 1.25
141) The accounts receivable turnover for Year 2 is closest to:
A) 1.10
B) 0.91
C) 11.52
D) 12.10
142) The inventory turnover for Year 2 is closest to:
A) 1.06
B) 0.94
C) 4.36
D) 4.24
100
Freiman Corporation’s most recent balance sheet and income statement appear below:
Balance Sheet
December 31, Year 2 and Year 1
(in thousands of dollars)
Year 2
Year 1
Assets
Current assets:
Cash
$
160
$
120
Accounts receivable, net
220
240
Inventory
120
130
Prepaid expenses
40
40
Total current assets
540
530
Plant and equipment, net
700
700
Total assets
$
1,240
$
1,230
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
$
130
$
150
Accrued liabilities
90
90
Notes payable, short term
60
70
Total current liabilities
280
310
Bonds payable
280
290
Total liabilities
560
600
Stockholders’ equity:
Common stock, $2 par value
100
100
Additional paid-in capital
200
200
Retained earnings
380
330
Total stockholders’ equity
680
630
Total liabilities & stockholders’ equity
$
1,240
$
1,230