1) The ____________________ ratio reflects how much inventory is available in terms
of days’ sales.
2) A company had net sales of $230,000 for 2010 and $288,000 for 2011. The
company’s average total assets for 2010 were $150,000 and $180,000 for 2011.
Calculate the total asset turnover for each year and comment on the company’s
efficiency in the use of its assets.
3) A company reported the current month purchase and sales data for its only product
and uses the perpetual inventory system. Determine the cost assigned to ending
inventory and cost of goods sold using FIFO.
4) Identify items a, b, and c in the cost-volume-profit graph shown below.
5) The fixed overhead variance can be broken down into the _________________
variance and the _________________ variance.
6) Abrams Co. has total fixed costs of $240,000 and a contribution margin ratio of 40%.
If rent expense increases by $5,000, how much will sales have to increase to cover this
increase in costs?
7) operating activity, an G. Paid interest on a note payable.
8>investing activity, a H. Reissued treasury stock.
9>noncash financing and investing activity I. Purchased equipment for cash.
10>financial activity, or a significant J. Purchased equipment in exchange for a 6-month
note payable.