Use the following information to do a horizontal analysis of Marcus Corporation’s
income statement for the current year and prior year:
What is the percentage change in net income?
A) 78.00%
B) -22.00%
C) 16.73%
D) 35.59%
The Nichols Corporation data for the current year:
What would a horizontal analysis report with respect to current liabilities?
A) Current liabilities saw a 30% increase from the prior year to the current year.
B) Current liabilities are 11.77% of total capital.
C) The current ratio is 1.06.
D) Current liabilities saw a 76.92% increase from the prior year to the current year.
Jones Ice Cream Stand is operated by Mr. Jones and experiences different sales patterns
throughout the year. To plan for the future, Mr. Jones wants to determine its cost
behavior patterns. He has the following information available about the ice cream
stand’s operating costs and the number of soft serve cones served.
The variable cost per ice cream cone using the high-low method is
A) $0.25.
B) $4.00.
C) $0.63.
D) $1.19.
Which of the following cost of quality categories represent the cost incurred to “rework
a defective product” before the product is shipped to a consumer?
A) Prevention costs
B) Appraisal costs
C) Internal failure costs
D) External failure costs
The Hummel Corporation reported the following income statement and balance sheet
amounts and additional information for the end of the current year.
Inventory and prepaid expenses account for $28,000 of the current year’s current assets.
Average inventory for the current year is $12,000.
Average net accounts receivable for the current year is $32,000.
There are 40,000 shares of common stock outstanding.
Total dividends paid during the current year were $60,000.
The market price per share of common stock is $25.
What is the company’s days’ sales in receivables for the current year?
A) 42.00 days
B) 1.20 days
C) 25.00 days
D) 14.60 days
Use the following information to do a horizontal analysis of Marcus Corporation’s
income statement for the current year and prior year:
What is the dollar change in gross profit?
A) $22,000
B) $(4,840)
C) $179,400
D) $25,800
The balance sheet for Bostick Corporation follows:
Operating income during the period was $13,650, while cash dividends paid were
$3,770. The total uses of cash for Bostick Corporation during the year was
A) $32,320.
B) $13,800.
C) $2,450.
D) $54,970.
The Bedford Corporation reported the following income statement and balance sheet
amounts and additional information for the end of the current year.
Inventory and prepaid expenses account for $30,000 of the current year’s current assets.
Average inventory for the current year is $36,250.
Average net accounts receivable for the current year is $45,000.
There are 35,000 shares of common stock outstanding.
Total dividends paid during the current year were $17,000.
The market price per share of common stock is $20.
What is the rate of return on total assets for the current year?
A) 34.40%
B) 37.49%
C) 30.17%
D) 0.53%
Which of the following is responsible for the ability of foreign companies to compete
with domestic companies in the global marketplace?
A) Globalization
B) The Sarbanes-Oxley Act of 2002
C) Decreased barriers to international trade
D) International financial reporting standards
Flash E-Card Manufacturing manufactures software parts for the computer software
systems that produce e-cards. The Flash II part is currently manufactured in the
Computer Department. The Data Department also produces the part and the plant has
excess capacity to produce the Flash II part. The current market price of the Flash II
part is $600. The managerial accountant reported the following manufacturing costs and
variable expense data:
If the highest acceptable transfer price is $600 in the market, what is the lowest
acceptable in-house price the Data Department should receive to produce the part
in-house at the Computer Department?
A) $110
B) $120
C) $840
D) $1,070
A company uses the indirect method to prepare the statement of cash flows. It presents
the following data on its financial statements:
*Relates solely to the acquisition of inventory
What will appear in the operating activities section related to accounts receivable?
A) The increase of $15,000 will be subtracted from net income.
B) The increase of $15,000 will be added to net income.
C) The increase of $15,000 will be added to sales revenue.
D) The increase of $15,000 will be subtracted from sales revenue.
The Nichols Corporation data for the current year:
What would a horizontal analysis report with respect to common stock?
A) Stockholder’s equity as 7.81% of total capital
B) Increase of $5,460 in common stock
C) 88.50% increase from prior to current year of cost of goods sold
D) Sales return of $11.26
A company reported the following amounts of net income:
Which of the following is the percentage change from Year 2 to Year 3?
A) 40.00%
B) 50.00%
C) 110.00%
D) 150.00%
Sally’s neighbor recently spent $180 on fitness clothes at the Workout Shop. The
neighbor used a credit card to purchase the workout clothes and the store charged a
transaction fee of $0.33 plus a fee of 1.10% of the total cost of the clothes charged on
the credit cards. What is the total cost of the workout clothes that Sally’s neighbor paid
to purchase the workout clothes?
A) $0.33
B) $33.00
C) $1.80
D) $182.31
Nixon’s Diner bakes pies in large batches. One batch of pies has the following standard
costs and amounts:
Nixon’s Diner baked 425 batches of pies in the most recent month. Actual costs and
usage levels were as follows:
Required:
a.Calculate the material price variance.
b.Calculate the material quantity variance.
c.Calculate the labor rate variance.
d.Calculate the labor efficiency variance.
A cost benchmark is valid only if the standards are
A) based on historical costs.
B) kept up to date.
C) reviewed by salaried assembly-line workers.
D) practical and attainable.
Porches, Inc. sells lawn furniture to consumers in the marketplace. The managerial
accountant reported the following financial information that reflects the 20XX data:
Compute the operating income.
A) $712,000
B) $127,000
C) $170,000
D) $90,000