Problems
1. For 2014, LBJ Corporation reported net income of $37,500; net sales $562,500; and weighted average shares outstanding of 7,500. There were no preferred dividends. What was the 2014 earnings per share?
$75.00
$50.00
$15.00
$5.00
2. Selling a long-term asset is an example of a(n)
operating activity.
investing activity.
financing activity.
noncash investing and financing activity.
3. On a classified balance sheet, which is the least liquid asset listed below?
Inventories
Cash and cash equivalents
Accounts receivable, net
Short-term investments
4. The following items are taken from the financial statements of PQR Company for 2012:
|
Cash
|
$250,000
|
|
Accounts Receivable
|
150,000
|
|
Prepaid Rent
|
120,000
|
|
Accounts Payable
|
168,000
|
|
Unearned Service Revenue
|
25,000
|
|
Equipment, net of accumulated depreciation
|
333,000
|
|
Common Stock
|
250,000
|
|
Retained Earnings 12/31/2011
|
41,000
|
|
Long-term debt
|
300,000
|
|
Service revenue
|
165,000
|
|
Cost of Goods Sold
|
50,000
|
|
Rent expense
|
24,000
|
|
Supplies expense
|
10,000
|
|
Insurance expense
|
12,000
|
Instructions:
(a) Create a classified Balance Sheet in good form for the year ended 2012.
(b) Calculate the current ratio.