1]
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Woodlawn Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available:
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Retained earnings balance at the beginning of the year
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$ 303,000
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Cash dividends declared for the year
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67,500
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Proceeds from the sale of equipment
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115,800
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Gain on the sale of equipment
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6,600
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Cash dividends payable at the beginning of the year
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29,700
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Cash dividends payable at the end of the year
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37,000
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Net income for the year
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148,500
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The ending balance in retained earnings is:
A $451,500.
B$302,100.
C $384,000.
D $395,700.
E $390,600.
2] Selected current year company information follows:
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Net income
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$ 16,453
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Net sales
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717,855
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Total liabilities, beginning-year
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88,932
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Total liabilities, end-of-year
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108,201
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Total stockholders' equity, beginning-year
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203,935
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Total stockholders' equity, end-of-year
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129,351
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The total asset turnover is (Do not round intermediate calculations.):
A 6.20 times.
B 2.71 times.
C 2.29 times.
D 3.02 times.
3]
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A company paid $34,800 plus a broker's fee of $450 to acquire 10% bonds with a $37,000 maturity value. The company intends to hold the bonds to maturity. The cash proceeds the company will receive when the bonds mature equal:
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A $40,700.
B $37,000.
C $35,250.
D $34,800.
E $37,450.
4]
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Refer to the following selected financial information from Fennie's, LLC. Compute the company's accounts receivable turnover for Year 2.
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Year 2
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Year 1
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Cash
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$ 39,500
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$ 34,250
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Short-term investments
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110,000
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70,000
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Accounts receivable, net
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95,500
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89,500
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Merchandise inventory
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131,000
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135,000
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Prepaid expenses
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14,100
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11,700
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Plant assets
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398,000
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348,000
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Accounts payable
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103,400
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117,800
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Net sales
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721,000
|
686,000
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Cost of goods sold
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400,000
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385,000
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A 8.06 times
B 7.79 times
C 6.55 times
D 7.55 times
E 5.50 times
5]
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Clark Corporation purchased 45% of IT Corporation for $120,000 on January 1. On May 20 of the same year, IT Corporation declared total cash dividends of $30,000. At year-end, IT Corporation reported net income of $150,000. The balance in Clark Corporation's Long-Term Investment-IT Corporation account as of December 31 should be:
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A $81,000.
B $174,000.
C $120,000.
D $231,000.
E $201,000.
6]
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On January 4, Year 1, Larsen Company purchased 6,500 shares of Warner Company for $78,000 plus a broker's fee of $1,600. Warner Company has a total of 32,500 shares of common stock outstanding and it is presumed the Larsen Company will have a significant influence over Warner. During each of the next two years, Warner declared and paid cash dividends of $0.75 per share, and its net income was $81,000 and $76,000 for Year 1 and Year 2, respectively. The January 12, Year 3, entry to record the sale of 3,900 shares of Warner Company stock for $52,650 cash should be:
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A Debit Cash $52,650; debit Loss on Sale of Investment $4,890; credit Long-Term Investments $47,760.
B Debit Cash $52,650; debit Loss on Sale of Investment $8,100; credit Long-Term Investments $60,750.
C Debit Cash $52,650; debit Loss on Sale of Investment $9,750; credit Long-Term Investments $42,900.
D Debit Cash $52,650; debit Loss on Sale of Investment $9,750; credit Long-Term Investments $62,400.
E-Debit Cash $52,650; debit Loss on Sale of Investment $26,950; credit Long-Term Investments $79,600.
7]
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On January 1, a company issues bonds dated January 1 with a par value of $270,000. The bonds mature in 5 years. The contract rate is 11%, and interest is paid semiannually on June 30 and December 31. The market rate is 10% and the bonds are sold for $280,420. The journal entry to record the issuance of the bond is:
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A Debit Cash $280,420; credit Discount on Bonds Payable $10,420; credit Bonds Payable $270,000.
B Debit Cash $280,420; credit Bonds Payable $280,420.
C Debit Cash $280,420; credit Premium on Bonds Payable $10,420; credit Bonds Payable $270,000.
D Debit Bonds Payable $270,000; debit Interest Expense $10,420; credit Cash $280,420.
E-Debit Cash $270,000; debit Premium on Bonds Payable $10,420; credit Bonds Payable $280,420.
8]
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On February 15, Seacroft buys 8,000 shares of Kebo common stock at $ 28.63 per share plus a brokerage fee of $400. The stock is classified as available-for-sale securities. On March 15, Kebo declares a dividend of $1.15 per share payable to stockholders of record on April 15. Seacroft received the dividend on April 15 and ultimately sells half of the Kebo stock on November 17 of the current year for $29.40 per share less a brokerage fee of $250. The journal entry to record the dividend on April 15 is:
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A Debit Cash $8,388; credit Dividend Revenue $8,388.
B Debit Cash $9,200; credit Interest Revenue $9,200.
C Debit Cash $8,388; credit Interest Revenue $8,388.
D Debit Cash $9,200; credit Gain on Sale of Investments $9,200.
E-Debit Cash $9,200; credit Dividend Revenue $9,200.
9]
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The accountant for Robinson Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available:
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Retained earnings balance at the beginning of the year
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$ 166,000
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Cash dividends declared for the year
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56,000
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Proceeds from the sale of equipment
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91,000
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Gain on the sale of equipment
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9,000
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Cash dividends payable at the beginning of the year
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28,000
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Cash dividends payable at the end of the year
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52,000
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Net income for the year
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102,000
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The amount of cash dividends paid during the year would be:
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A $56,000.
B $24,000.
C $57,000.
D $47,000.
E $32,000.
10]
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A company had a profit margin of 11.40% and total asset turnover of 1.93. Its return on total assets was:
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A 13.33%
B 5.91%
C 9.47%
D 22.00%
E 16.10%