Homework Solutions  
» Home
  

See All Homework
Questions here

Question Description

 
Posted by: Homeworkhelp
Price Quoted by Student: $12
Posted On: 2016-05-10 12:12:46
 
Question

ACCT310 Intermediate Accounting I Part 1 (65%)

 

MULTIPLE CHOICE.  Choose the one alternative that best completes the statement or answers the question.

1)     Compute the times interest earned ratio given the following data:

             Net income      $260,000

            Income from operations          485,000

            Interest expense           20,000

            Income tax expense     58,000


A) 14 times 
B) 16.9 times 
C)  13 times 
D)  9.1 times 

The following data represent selected information from the comparative income statement and balance sheet for ABC Company for the years ended December 31, 2014 and 2013:

            2014    2013

            Cash    $ 15,000          $ 15,000

            Net accounts receivable           30,000 25,000

            Inventory         43,000 40,000

            Prepaid expenses         5,000   7,000

            Total current assets      93,000 87,000

            Total noncurrent assets            112,000           114,000

            Total current liabilities 70,000 60,000

            Total noncurrent liabilities       40,000 45,000

            Common stock, no-par*          65,000 60,000

            Retained earnings        30,000 36,000

            Net credit sales            370,000           333,000

            Cost of goods sold       150,000           160,000

            Gross profit     220,000           173,000

            Income from operations          95,000 87,000

            Interest expense           8,000   8,000

            Net income      70,000 57,000

 

* 10,000 shares of common stock have been issued and outstanding since the company was established.

 

2) The debt ratio for ABC Company on December 31, 2014, was: 
A) 1.82 
B)

0.55 


C)


1.87 


D)


0.54 


           

                           


3)


The accounts receivable turnover for ABC Company for the year ended December 31, 2014, was: 


A)


12.33 


B)


13.32 


C)


12.11 


D)


13.45 


 

                                               


4)


ABC Company's gross profit ratio for the year ended December 31, 2014, was: 


A)


.59 


B)


.41 


C)


.23 


D)


.11 


 

           


5)


The inventory turnover for ABC Company for the year ended December 31, 2014, was: 


A)


3.49 


B)


3.61 


C)


3.86 


D)


4.00 


 

 


6)


The acid-test ratio for ABC Company on December 31, 2014, was: 


A)


1.45 


B)


0.57 


C)


1.26 


D)


0.67 


 


7)


For the year ending on December 31, 2006, ABC Company's rate of return on net sales was: 


A)


0.19 


B)


0.21 


C)


0.17 


Solutions
ACCT310 Intermediate Accounting I &nbs
Price $12
Attachment 1: ACCT310 Intermediate Accounting I Part 1 .docx
Solution Posted By: Homeworkhelp    Posted on: 10-05-2016