Question :
71. Which of the following not a measure of profitability?
a.
Current : 1410818
71. Which of the following is not a measure of profitability?
|
a. |
Current ratio |
|
b. |
Return on assets |
|
c. |
Return on equity |
|
d. |
Debt to equity ratio |
72. Which of the following is a measure of liquidity?
|
a. |
Return on equity |
|
b. |
Return on assets |
|
c. |
Working capital |
|
d. |
Profit margin |
73. Current assets divided by current liabilities is known as the
|
a. |
profit margin. |
|
b. |
current ratio. |
|
c. |
working capital. |
|
d. |
capital structure. |
74. Which of the following is not expressed in terms of a percentage?
|
a. |
Return on equity |
|
b. |
Debt to equity ratio |
|
c. |
Current ratio |
|
d. |
Profit margin |
75. Which of the following is expressed in terms of a percentage?
|
a. |
Return on equity |
|
b. |
Current ratio |
|
c. |
Asset turnover |
|
d. |
Working capital |
76. Which of the following does not include net income in its computation?
|
a. |
Debt to equity ratio |
|
b. |
Return on assets |
|
c. |
Return on equity |
|
d. |
Profit margin |
77. Use this balance sheet and income statement for the first year of operations for Layton Novelties to answer the following question. Use ending balances whenever average balances are required for computing ratios.
|
Layton Novelties |
|||||
|
Balance Sheet |
|||||
|
December 31, 2010 |
|||||
|
Assets |
Liabilities |
||||
|
Current assets |
$ 28,000 |
|
Current liabilities |
$ 16,000 |
|
|
Investments |
12,000 |
|
Long-term liabilities |
4,000 |
|
|
Property, plant, and equipment |
48,000 |
|
Total liabilities |
$ 20,000 |
|
|
Intangible assets |
32,000 |
|
|
|
|
|
|
|
Owner's Equity |
|||
|
|
|
|
June Layton, Capital |
100,000 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and |
|
|
|
Total assets |
$120,000 |
|
owner's equity |
$120,000 |
|
|
Layton Novelties |
|
|
Income Statement |
|
|
For the Year Ended December 31, 2010 |
|
|
Net sales |
$80,000 |
|
Cost of goods sold |
32,000 |
|
Gross margin |
$48,000 |
|
Operating expenses |
26,400 |
|
Net income |
$21,600 |
|
|
|
|
|
|
The total amount of working capital for Layton Novelties is
|
a. |
$8,000. |
|
b. |
$28,000. |
|
c. |
$12,000. |
|
d. |
$4,000. |
78. Use this balance sheet and income statement for the first year of operations for Layton Novelties to answer the following question. Use ending balances whenever average balances are required for computing ratios.
|
Layton Novelties |
|||||
|
Balance Sheet |
|||||
|
December 31, 2010 |
|||||
|
Assets |
Liabilities |
||||
|
Current assets |
$ 28,000 |
|
Current liabilities |
$ 16,000 |
|
|
Investments |
12,000 |
|
Long-term liabilities |
4,000 |
|
|
Property, plant, and equipment |
48,000 |
|
Total liabilities |
$ 20,000 |
|
|
Intangible assets |
32,000 |
|
|
|
|
|
|
|
Owner's Equity |
|||
|
|
|
|
June Layton, Capital |
100,000 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and |
|
|
|
Total assets |
$120,000 |
|
owner's equity |
$120,000 |
|
|
Layton Novelties |
|
|
Income Statement |
|
|
For the Year Ended December 31, 2010 |
|
|
Net sales |
$80,000 |
|
Cost of goods sold |
32,000 |
|
Gross margin |
$48,000 |
|
Operating expenses |
26,400 |
|
Net income |
$21,600 |
|
|
|
|
|
|
The current ratio for Layton Novelties is
|
a. |
1.75. |
|
b. |
0.57. |
|
c. |
1.4. |
|
d. |
2.0. |
79. Use this balance sheet and income statement for the first year of operations for Layton Novelties to answer the following question. Use ending balances whenever average balances are required for computing ratios.
|
Layton Novelties |
|||||
|
Balance Sheet |
|||||
|
December 31, 2010 |
|||||
|
Assets |
Liabilities |
||||
|
Current assets |
$ 28,000 |
|
Current liabilities |
$ 16,000 |
|
|
Investments |
12,000 |
|
Long-term liabilities |
4,000 |
|
|
Property, plant, and equipment |
48,000 |
|
Total liabilities |
$ 20,000 |
|
|
Intangible assets |
32,000 |
|
|
|
|
|
|
|
Owner's Equity |
|||
|
|
|
|
June Layton, Capital |
100,000 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and |
|
|
|
Total assets |
$120,000 |
|
owner's equity |
$120,000 |
|
|
Layton Novelties |
|
|
Income Statement |
|
|
For the Year Ended December 31, 2010 |
|
|
Net sales |
$80,000 |
|
Cost of goods sold |
32,000 |
|
Gross margin |
$48,000 |
|
Operating expenses |
26,400 |
|
Net income |
$21,600 |
|
|
|
|
|
|
The profit margin for Layton Novelties is
|
a. |
30 percent. |
|
b. |
75 percent. |
|
c. |
60 percent. |
|
d. |
27 percent. |
80. Use this balance sheet and income statement for the first year of operations for Layton Novelties to answer the following question. Use ending balances whenever average balances are required for computing ratios.
|
Layton Novelties |
|||||
|
Balance Sheet |
|||||
|
December 31, 2010 |
|||||
|
Assets |
Liabilities |
||||
|
Current assets |
$ 28,000 |
|
Current liabilities |
$ 16,000 |
|
|
Investments |
12,000 |
|
Long-term liabilities |
4,000 |
|
|
Property, plant, and equipment |
48,000 |
|
Total liabilities |
$ 20,000 |
|
|
Intangible assets |
32,000 |
|
|
|
|
|
|
|
Owner's Equity |
|||
|
|
|
|
June Layton, Capital |
100,000 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and |
|
|
|
Total assets |
$120,000 |
|
owner's equity |
$120,000 |
|
|
Layton Novelties |
|
|
Income Statement |
|
|
For the Year Ended December 31, 2010 |
|
|
Net sales |
$80,000 |
|
Cost of goods sold |
32,000 |
|
Gross margin |
$48,000 |
|
Operating expenses |
26,400 |
|
Net income |
$21,600 |
|
|
|
|
|
|
The return on assets for Layton Novelties is
|
a. |
40 percent. |
|
b. |
70 percent. |
|
c. |
18 percent. |
|
d. |
66-2/3 percent. |
