The ___________________ is calculated by dividing net sales by average total assets.
Answer:
Phast Express specializes in the overnight transportation of medical
equipment and laboratory specimens. The company has selected the
following information from its most recent annual report to be the subject
of an immediate press release.
•The financial statements are being released.
•Net income this year was $2.12 million. Last year’s net income had
been $2.0 million.
•The current ratio has changed to 2:1 from last year’s 1.4:1
•The debt/assets ratio has changed to 3:5 from last year’s 2:5
•The company expanded its truck fleet substantially by purchasing ten
new delivery vans. The company already had twelve delivery vans.
•The company is now the largest medical courier in the mid-Atlantic
region.
Prepare a brief press release incorporating the information above. Include all
information. Think carefully which information (if any) is good news for the
company, and which (if any) is bad news.
Answer:
During the year, Income Tax Expense amounted to $30,000 and Income Taxes Payable
increased by $4,000; therefore, the cash paid for income taxes was $26,000.
Answer:
The monetary unit assumption states that transactions that can be measured in terms of
money should be recorded in the accounting records.
Answer:
A working knowledge of accounting is not relevant to a lawyer or an architect.
Answer:
During July, the following purchases and sales were made by Big Dan Company. There
was no beginning inventory. Big Dan Company uses a perpetual inventory system.
Under the LIFO method, the cost of goods sold for each sale is:
Answer:
Closing entries are journalized after adjusting entries have been journalized.
Answer:
A company whose current liabilities exceed its current assets may have a liquidity
problem.
Answer:
Posting is the process of proving the equality of debits and credits in the trial balance.
Answer: