100) Rough Corporation’s total assets at the end of Year 2 were $1,247,000 and at the end of Year
1 were $1,270,000. The company’s total liabilities at the end of Year 2 were $512,000 and at the
end of Year 1 were $550,000. The company’s total stockholders’ equity at the end of Year 2 was
$735,000 and at the end of Year 1 was $720,000. The company’s equity multiplier is closest to:
A) 1.73
B) 1.44
C) 0.69
D) 0.58
101) Younis Corporation’s income statement appears below:
Income Statement
Sales (all on account)
$
1,240,000
Cost of goods sold
780,000
Gross margin
460,000
Operating expenses
416,571
Net operating income
43,429
Interest expense
14,000
Net income before taxes
29,429
Income taxes (30%)
8,829
Net income
$
20,600
The company’s net profit margin percentage is closest to:
A) 37.1%
B) 3.5%
C) 2.4%
D) 1.7%
102) Crosswhite Corporation’s sales last year were $1,270,000, its gross margin was $400,000, its
net operating income was $53,769, and its net income was $26,500. The company’s net profit
margin percentage is closest to:
A) 31.5%
B) 3.2%
C) 4.2%
D) 2.1%
103) Mars Corporation has provided the following data for Year 2:
A) 5.91%
B) 7.40%
C) 3.84%
D) 71.20%
104) Sapien Corporation has provided the following data for the most recent year:
Sales
$
1,340,000
Gross margin
$
460,000
Net operating income
$
54,846
Net income before taxes
$
41,846
Net income
$
27,200
The company’s gross margin percentage is closest to:
A) 52.3%
B) 1691.2%
C) 5.9%
D) 34.3%
105) Mormino Corporation’s income statement appears below:
Income Statement
Sales (all on account)
$
1,240,000
Cost of goods sold
730,000
Gross margin
510,000
Operating expenses
450,462
Net operating income
59,538
Interest expense
18,000
Net income before taxes
41,538
Income taxes (35%)
14,538
Net income
$
27,000
The company’s gross margin percentage is closest to:
A) 1888.9%
B) 5.3%
C) 41.1%
D) 69.9%
106) Jester Corporation’s most recent income statement appears below:
Income Statement
$
610,000
340,000
270,000
160,000
110,000
20,000
90,000
27,000
$
63,000
The beginning balance of total assets was $360,000 and the ending balance was $320,000. The
return on total assets is closest to:
A) 26.5%
B) 18.5%
C) 22.6%
D) 32.4%
107) For Year 2, Etzkorn Corporation’s sales were $1,480,000, its gross margin was $580,000, its
net operating income was $63,714, its net income before taxes was $42,714, and its net income
was $29,900. The company’s total stockholders’ equity at the end of Year 2 amounted to $829,000
and at the end of Year 1 to $800,000. The company’s return on equity for Year 2 is closest to:
A) 3.67%
B) 60.16%
C) 5.24%
D) 7.82%
108) Kienle Corporation’s Year 2 income statement appears below:
Income Statement
Sales
$
1,280,000
Cost of goods sold
800,000
Gross margin
480,000
Operating expenses
419,857
Net operating income
60,143
Interest expense
12,000
Net income before taxes
48,143
Income taxes (30%)
14,443
Net income
$
33,700
The company’s total assets at the end of Year 2 amounted to $1,359,000 and at the end of Year 1 to
$1,320,000. The company’s return on total assets for Year 2 is closest to:
A) 2.48%
B) 3.14%
C) 2.52%
D) 3.10%
109) Valdovinos Corporation has provided the following data:
Sales (all on account)
$
1,150,000
Gross margin
$
440,000
Net operating income
$
40,077
Net income before taxes
$
23,077
Net income
$
15,000
The company’s net profit margin percentage is closest to:
A) 38.3%
B) 3.5%
C) 1.3%
D) 2.0%
110) Braverman Corporation’s net income last year was $75,000 and its interest expense was
$10,000. Total assets at the beginning of the year were $650,000 and total assets at the end of the
year were $610,000. The corporation’s income tax rate was 30%. The corporation’s return on total
assets for the year was closest to:
A) 13.5%
B) 12.4%
C) 13.0%
D) 11.9%
111) Grosvenor Corporation’s most recent income statement appears below:
$
807,000
446,000
361,000
186,000
175,000
39,000
136,000
40,000
$
96,000
The gross margin percentage is closest to:
A) 80.9%
B) 44.7%
C) 376.0%
D) 26.6%
112) Fongeallaz Corporation’s income statement for Year 2 appears below:
Income Statement
Sales (all on account)
$
1,360,000
Cost of goods sold
870,000
Gross margin
490,000
Operating expenses
416,286
Net operating income
73,714
Interest expense
18,000
Net income before taxes
55,714
Income taxes (30%)
16,714
Net income
$
39,000
The company’s total stockholders’ equity at the end of Year 2 amounted to $841,000 and at the end
of Year 1 to $810,000. The company’s return on equity for Year 2 is closest to:
A) 64.40%
B) 8.93%
C) 6.75%
D) 4.72%
113) Weightman Corporation’s net operating income in Year 2 was $76,385, net income before
taxes was $55,385, and the net income was $36,000. Total common stock was $200,000 at the end
of both Year 2 and Year 1. The par value of common stock is $4 per share. The company’s total
stockholders’ equity at the end of Year 2 amounted to $983,000 and at the end of Year 1 to
$950,000. The market price per share at the end of Year 2 was $7.92. The company’s
price-earnings ratio for Year 2 is closest to:
A) 7.14
B) 0.58
C) 5.18
D) 11.00
114) The following information relates to Conejo Corporation for last year:
Book value per share
$
40
Par value per share
$
12
Dividends per share
$
5
Dividend payout ratio
20
%
Dividend yield ratio
10
What is Conejo’s price-earnings ratio for last year?
A) 1.6
B) 2.4
C) 8.0
D) 2.0
115) Goldsmith Corporation has provided the following data:
Year 2
Year 1
Common stock, $3 par value
$
270,000
$
270,000
Retained earnings
$
419,000
$
400,000
Total stockholders’ equity
$
749,000
$
730,000
Total liabilities & stockholders’ equity
$
1,291,000
$
1,270,000
The company’s net income in Year 2 was $24,400. The company’s book value per share at the end
of Year 2 is closest to:
A) $8.32 per share
B) $4.66 per share
C) $14.34 per share
D) $0.27 per share
116) Linzey Corporation has provided the following data:
Year 2
Year 1
Common stock, $2 par value
$
120,000
$
120,000
Retained earnings
$
747,000
$
720,000
Total stockholders’ equity
$
927,000
$
900,000
The company’s net income in Year 2 was $33,000. The company’s book value per share at the end
of Year 2 is closest to:
A) $22.45 per share
B) $12.45 per share
C) $0.55 per share
D) $15.45 per share
117) Tempel Corporation has provided the following data:
Year 2
Year 1
Common stock, $4 par value
$
240,000
$
240,000
Total stockholders’ equity
$
817,000
$
810,000
Net operating income
$
36,714
Net income before taxes
$
17,714
Net income
$
12,400
The market price of common stock at the end of Year 2 was $2.77 per share. The company’s
price-earnings ratio for Year 2 is closest to:
A) 9.23
B) 0.35
C) 4.54
D) 13.40
118) Keyton Corporation’s net operating income in Year 2 was $43,714, net income before taxes
was $30,714, and the net income was $21,500. Total common stock was $200,000 at the end of
both Year 2 and Year 1. The par value of common stock is $4 per share. The company’s total
stockholders’ equity at the end of Year 2 amounted to $1,148,000 and at the end of Year 1 to
$1,130,000. The company declared and paid $3,500 dividends on common stock in Year 2. The
market price per share was $8.43 at the end of Year 2. The company’s dividend payout ratio for
Year 2 is closest to:
A) 0.8%
B) 1.8%
C) 16.3%
D) 11.4%
119) Rawdon Corporation’s net operating income in Year 2 was $52,429, net income before taxes
was $34,429, and the net income was $24,100. Total common stock was $360,000 at the end of
both Year 2 and Year 1. The par value of common stock is $4 per share. The company’s total
stockholders’ equity at the end of Year 2 amounted to $976,000 and at the end of Year 1 to
$960,000. The company’s earnings per share for Year 2 is closest to:
A) $0.58 per share
B) $0.38 per share
C) $0.27 per share
D) $5.84 per share
120) Leflore Corporation has provided the following data:
Year 2
Year 1
Common stock, $5 par value
$
500,000
$
500,000
Total stockholders’ equity
$
1,016,000
$
1,010,000
Net operating income
$
35,143
Net income before taxes
$
17,143
Net income
$
12,000
Dividends on common stock during Year 2 totaled $6,000. The market price of common stock at
the end of Year 2 was $1.38 per share. The company’s dividend yield ratio for Year 2 is closest to:
A) 4.3%
B) 1.2%
C) 35.0%
D) 50.0%