68.
Baron Company reported the following data:
Cash
$80,000
Accounts receivable
120,000
Marketable securities
40,000
Inventory
100,000
Prepaid rent expense
10,000
Accounts payable
70,000
Current portion of long-term debt
140,000
Net credit sales
1,000,000
Cost of goods sold
600,000
The cash ratio is closest to:
69.
If the current ratio is 2, what will be the effect of the payment of a cash dividend, which was
recorded as a liability on the date of declaration?
70.
Which of the following transactions would increase the current ratio of a company if the ratio
is currently greater than 1?
71.
Potaw Company reported the following data at the end of 2016:
Sales revenue (75% on credit)
$300,000
Expenses (26% on credit)
60,000
Accounts receivable, net at December 31,
2016 (a decrease of $4,000 during 2016)
8,000
Total assets
200,000
Stockholders’ equity
150,000
What was the accounts receivable turnover ratio?
72.
Potaw Company reported the following data at the end of 2016:
Sales revenue (75% on credit)
$300,000
Expenses (26% on credit)
60,000
Accounts receivable, net at December 31,
2016 (a decrease of $4,000 during 2016)
8,000
Total assets
200,000
Stockholders’ equity
150,000
The average number of days to collect receivables during 2016 is closest to:
73.
Cromwell Company began the year with a balance in inventory of $110,000 and ended the
year with a balance of $102,000. The net sales for the year were $983,000 with a gross profit
on sales of $295,000. The inventory turnover ratio is closest to:
74.
Thomas Company had income before interest and taxes of $120,000. Interest expense for the
period was $17,000 and income taxes amounted to $28,500. The average stockholders’ equity
was $680,000. Thomas’ return on equity (ROE) is closest to:
75.
Wildlife Co. reported net income of $8.3 million, interest expense of $0.5 million and is in a
30% tax rate bracket. Wildlife’s average total assets are $65.8 million and average
stockholders’ equity is $48.6 million. Wildlife’s financial leverage percentage is closest to:
76.
Which of the following is false?
77.
Which of the following is false?
78.
Which of the following is not a measure of solvency?
79.
Bailey Corporation reported the following information for 2016:
Net income
$10,000
Total assets
16,000
Total stockholders’ equity
8,000
What is Bailey’s debt-to–equity ratio?
80.
The debt-to–equity ratio measures which of the following?
81.
Which of the accounting ratios considers the importance of cash flows relating to required
interest payments?
82.
Which of the following is correct?
83.
Which ratio reflects the stock market’s assessment of a company’s future performance?
84.
The Apple Pie Company had net income of $47,500 and earnings per share of $3.17. Apple Pie
declared dividends of $2 per share of common stock during 2016. On December 31, 2016, the
stock had a market price of $18.50 per share. Apple Pie’s price/earnings ratio is closest to:
85.
Main Street Company paid out $2.30 in dividends per share of common stock and had
earnings per share of $5.00 during 2016. The market price of the stock on December 31, 2016
was $21.00 per share. There were 15,000 shares of stock outstanding for the entire year. The
dividend yield as of December 31, 2016 is closest to:
86.
MusicPod’s earnings per share ratios were $2.47 and $2.07 respectively for 2017 and 2016.
MusicPod’s stock was trading at $53.00 and $41.50 per share at the end of 2017 and 2016
respectively. The company paid cash dividends per share of $0.85 in 2017 and $0.63 in 2016.
Total stockholders’ equity was $13,572 million and $11,896 million in 2017 and 2016
respectively. The common shares outstanding were approximately 1,782,000 in both 2017 and
2016.
MusicPod’s price/earnings ratio for 2017 is closest to:
87.
MusicPod’s earnings per share ratios were $2.47 and $2.07 respectively for 2017 and 2016.
MusicPod’s stock was trading at $53.00 and $41.50 per share at the end of 2017 and 2016
respectively. The company paid cash dividends per share of $0.85 in 2017 and $0.63 in 2016.
Total stockholders’ equity was $13,572 million and $11,896 million in 2017 and 2016
respectively. The common shares outstanding were approximately 1,782,000 in both 2017 and
2016.
MusicPod’s dividend yield ratio for 2017 is closest to:
88.
Lee Company has provided the following information:
• Cash flow from operating activities, $240,000
• Net income, $204,000
• Interest expense, $20,000
• Interest cash payments, $10,000
• Income tax payments, $140,000
• Income tax expense, $136,000
What was Lee’s cash coverage ratio?
89.
Lee Company has provided the following information:
• Cash flow from operating activities, $240,000
• Net income, $204,000
• Interest expense, $20,000
• Interest cash payments, $10,000
• Income tax payments, $140,000
• Income tax expense, $136,000
What was Lee’s times interest earned ratio?
90.
Lee Company has provided the following information:
• Cash flow from operating activities, $240,000
• Net income, $204,000
• Interest expense, $20,000
• Interest cash payments, $10,000
• Income tax payments, $140,000
• Income tax expense, $136,000
Lee’s earnings quality ratio is closest to:
91.
Lucas Company has provided the following information:
• Cash flow from operating activities, $360,000
• Net income, $306,000
• Interest expense, $30,000
• Interest cash payments, $20,000
• Income tax payments, $240,000
• Income tax expense, $246,000
What was Lucas’ cash coverage ratio?
92.
Lucas Company has provided the following information:
• Cash flow from operating activities, $360,000
• Net income, $306,000
• Interest expense, $30,000
• Interest cash payments, $20,000
• Income tax payments, $240,000
• Income tax expense, $246,000
What was Lucas’ times interest earned ratio?
93.
Lucas Company has provided the following information:
• Cash flow from operating activities, $360,000
• Net income, $306,000
• Interest expense, $30,000
• Interest cash payments, $20,000
• Income tax payments, $240,000
• Income tax expense, $246,000
What was Lucas’ earnings quality ratio?