172) The company’s average sale period for Year 2 is closest to:
A) 91.9 days
B) 48.9 days
C) 90.1 days
D) 198.1 days
173) The company’s operating cycle for Year 2 is closest to:
A) 95.9 days
B) 75.3 days
C) 162.0 days
D) 9.2 days
174) The company’s total asset turnover for Year 2 is closest to:
A) 5.29
B) 0.19
C) 1.04
D) 0.96
124
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
$
Accounts receivable, net
134,000
Inventory
150,000
Prepaid expenses
83,000
Total current assets
594,000
Plant & equipment, net
769,000
Total assets
$
1,363,000
$
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
$
200,000
$
Accrued liabilities
63,000
Notes payable, short term
71,000
Total current liabilities
334,000
Bonds payable
290,000
Total liabilities
624,000
Stockholders’ equity:
Common stock, $5 par value
400,000
Additional paid-in capital
50,000
Retained earnings
289,000
Total stockholders’ equity
739,000
Total liabilities & stockholders’ equity
$
1,363,000
$
Income Statement
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.
175) The company’s accounts receivable turnover for Year 2 is closest to:
A) 0.97
B) 10.38
C) 1.03
D) 10.22
176) The company’s average collection period for Year 2 is closest to:
A) 35.7 days
B) 1.1 days
C) 1.0 days
D) 35.2 days
177) The company’s inventory turnover for Year 2 is closest to:
A) 6.54
B) 5.67
C) 6.07
D) 0.87
178) The company’s average sale period for Year 2 is closest to:
A) 226.5 days
B) 60.1 days
C) 40.0 days
D) 64.4 days
179) The company’s operating cycle for Year 2 is closest to:
A) 66.2 days
B) 16.5 days
C) 95.3 days
D) 45.6 days
180) The company’s total asset turnover for Year 2 is closest to:
A) 10.17
B) 0.10
C) 1.02
D) 0.98
Guttery Corporation has provided the following financial data from its balance sheet:
Year 2
Year 1
Accounts receivable, net
$
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.
181) The company’s accounts receivable turnover for Year 2 is closest to:
A) 12.95
B) 1.02
C) 0.98
D) 13.06
182) The company’s average collection period for Year 2 is closest to:
A) 1.1 days
B) 28.2 days
C) 1.0 days
D) 27.9 days
183) The company’s inventory turnover for Year 2 is closest to:
A) 5.17
B) 5.56
C) 6.00
D) 0.86
184) The company’s average sale period for Year 2 is closest to:
A) 65.6 days
B) 226.6 days
C) 43.8 days
D) 70.6 days
185) The company’s operating cycle for Year 2 is closest to:
A) 71.2 days
B) 93.5 days
C) 18.6 days
D) 41.0 days
186) The company’s total asset turnover for Year 2 is closest to:
A) 1.17
B) 11.04
C) 0.09
D) 0.85
135
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
$
Accounts receivable, net
255,000
Inventory
206,000
Prepaid expenses
44,000
Total current assets
610,000
Plant and equipment, net
1,065,000
Total assets
$
1,675,000
$
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
$
119,000
$
Accrued liabilities
88,000
Notes payable, short term
53,000
Total current liabilities
260,000
Bonds payable
110,000
Total liabilities
370,000
Stockholders’ equity:
Common stock, $5 par value
250,000
Additional paid-in capital
70,000
Retained earnings
985,000
Total stockholders’ equity
1,305,000
Total liabilities & stockholders’ equity
$
1,675,000
$
136
Income Statement
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.
187) The company’s operating cycle for Year 2 is closest to:
A) 70.8 days
B) 10.0 days
C) 87.7 days
D) 148.5 days
188) The company’s total asset turnover for Year 2 is closest to:
A) 1.25
B) 0.80
C) 6.57
D) 0.15
189) The company’s equity multiplier at the end of Year 2 is closest to:
A) 0.28
B) 1.28
C) 3.53
D) 0.78
139
Burdick Corporation has provided the following financial data from its balance sheet:
Year 2
Year 1
Accounts receivable, net
$
266,000
$
250,000
Inventory
$
162,000
$
190,000
Total assets
$
1,415,000
$
1,390,000
Total stockholders’ equity
$
991,000
$
970,000
Sales (all on account) in Year 2 amounted to $1,410,000 and the cost of goods sold was $860,000.
190) The company’s operating cycle for Year 2 is closest to:
A) 10.4 days
B) 79.5 days
C) 141.3 days
D) 72.2 days