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15.4-71Which of the following factors might suggest that a company is having difficulty selling its inventory? A)  An increase in receivables B)  A buildup of inventory balances C)  An increase in total debt D)  An increase in interest expense 15.4-72Which of the following is a “red flag” suggesting that a company may be in trouble? A) .
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14.7-5Avatar Company uses the indirect method to prepare its statement of cash flows. Using the worksheet                                           shown below, please enter the adjustments needed to record the acquisition of plant assets for $52,000. Balance Transaction Analysis Balance Panel A - Balance Sheet Dec 31, 2013 Dec 31, 2014 Cash $  18,000 $  21,000 Accounts receivable 35,000 (d) 4,000 31,000.
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14.6-30Avatar Company uses the direct method to prepare its statement of cash flows.  Please refer to the                                           following financial statement information for the year 2014: Comparative Balance Sheet 2014 2013 Increase/decrease Cash $  21,000 $  18,000 $  3,000 Accounts receivable 31,000 35,000 (4,000) Inventory 53,000 25,000 28,000 PP&E, net 120,000 90,000 30,000     Total assets $225,000 $168,000 $57,000.
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14.5-51Partridge Company provides the following information for the year 2014: Net income:$31,200 Market price of common stock: $12.00/share Dividends paid:$0.80/share Common stock outstanding at January 1, 2014:  110,000 shares Common stock outstanding at December 31, 2014: 150,000 shares (No preferred stock issued) How much was the earnings per share for 2014? A)  $0.21 B)  $0.28 C)  $0.24 D)  $4.05 14.5-52Partridge Company provides.
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14.7-2Avatar Company uses the indirect method to prepare its statement of cash flows.  Using the worksheet                                           shown below, please enter the adjustments needed to record depreciation expense for the year of 2014 of                                           $12,000. Balance Transaction Analysis Balance Panel A - Balance Sheet Dec 31, 2013 Dec 31, 2014 Cash $  18,000 $ .
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14.3-78Avatar Company uses the indirect method to prepare the statement of cash flows.  Please refer to the                                           following comparative balance sheet for Avatar Company and complete the third column for increases                                           and decreases. 2014 2013 Increase/decrease Cash $  33,000 $  18,000 Accounts receivable 22,000 35,000 Inventory 170,000 115,000     Total assets $225,000.
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14.3-68Avatar Company uses the indirect method to prepare its statement of cash flows.  Please refer to the                                           following information for the year 2014. Net cash flows from operating activities:$32,000 positive Net cash flows from investing activities:$38,000 negative Net cash flows from financing activities: $  9,000 positive Which of the following statements.
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14.3-48Avatar Company uses the indirect method to prepare the statement of cash flows.  Please refer to the                                           following section of the comparative balance sheet: 2014 2013 Increase/decrease Accounts payable $  4,000 $  6,000 $(2,000) Accrued liabilities 2,000 1,000 1,000 Long-term notes payable 84,000 90,000 (6,000)     Total liabilities $90,000 $97,000 $(7,000) How will the change in Accrued liabilities.
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14.6-11Avatar Company uses the direct method to prepare its statement of cash flows.  Please refer to the                                           following information reported for the year 2014: Sales revenue:$240,000 Accounts receivable beginning balance:$  35,000 Accounts receivable ending balance:$  31,000 In the operating activity section of the statement of cash flows, what amount would be.
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14.7-6Avatar Company uses the indirect method to prepare its statement of cash flows. Using the worksheet                                           shown below, please enter the adjustments needed to record the following transactions: Issued common stock for $28,000. Issued new long-term notes payable for $34,000. Repaid long-term notes payable for $40,000. Balance Transaction Analysis Balance Panel A - Balance Sheet Dec.
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15.2-11Please refer to the vertical analysis of income statement data shown below: (Dollar amounts in millions) 2014 2013 Amount % of Total Amount % of Total Revenues $6,355 100.0% $4,920 100.0% Cost of revenues 3,370 53.0% 2,200 44.7% Gross Profit $2,985 47.0% $2,720 55.3% Operating expenses:    Sales and marketing expense $   675 10.6% $   580 11.8%    General and administrative expense 410 6.5% 425 8.6%    Research and development expense 470 7.4% 390 7.9%    Other.
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15.3-19Arlington Company wishes to compare itself to a key competitor, but that company is much larger in size                                           than Arlington.  Please refer to the following income statement information: Arlington Co. Bardo Co. Revenues $8,000 $46,000 Cost of revenues 3,370 22,000 Gross Profit 4,630 24,000 Operating expenses:    Sales and marketing expense 2,100 3,950    General.
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14.3-82Starfire Company uses the indirect method to prepare the statement of cash flows.  Please refer to the                                           following income statement: Sales revenue $140,000 Interest revenue 5,000 Loss on sale of plant assets (4,000)   Total revenues and (losses) $141,000 Cost of goods sold 100,000 Salary expense 23,000 Depreciation expense 8,000 Other operating expenses 9,000 Interest expense 2,000.
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14.3-84Avatar Company uses the indirect method to prepare its statement of cash flows. Please refer to the                                           following portion of the comparative balance sheet: 2014 2013 Increase/decrease Cash $  21,000 $  18,000 $  3,000 Accounts receivable 31,000 35,000 (4,000) Inventory 53,000 25,000 28,000 PP&E, net 120,000 90,000 30,000     Total assets $225,000 $168,000 $57,000 Additional information provided: Equipment.
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14.3-58Avatar Company uses the indirect method to prepare its statement of cash flows. Please refer to the                                           following portion of the comparative balance sheet: 2014 2013 Increase/decrease Accounts payable $  4,000 $  6,000 $(2,000) Accrued liabilities 2,000 1,000 1,000 Long-term notes payable 84,000 90,000 (6,000)     Total liabilities $90,000 $97,000 $(7,000) Additional information provided: During 2014, the company repaid.
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14.6-32The income statement and a partial balance sheet for Jefferson Company is presented below. Prepare the operating activities section of the statement of cash flows using the direct method.                  Jefferson Company                   Income Statement For the Year Ended December 31, 2013 Sales $500,000 Cost of goods sold   390,000 Gross profit $110,000 Operating expenses: Salaries $70,000 Depreciation expense 20,000 Miscellaneous 10,000 100,000 Net income $ 10,000                                                                                              .
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14.7-3Avatar Company uses the indirect method to prepare its statement of cash flows.  During 2014, plant                                           assets with book value of $10,000 were sold for $14,000.  Using the worksheet shown below, please enter                             the adjustments needed to record gain on sale of plant assets of.
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14.7-8Avatar Company uses the indirect method to prepare its statement of cash flows.  Please refer to the                                           partially completed worksheet below.  Please complete the worksheet, including the data showing the net                                           change in cash, plus all control totals. Balance Transaction Analysis Balance Panel A - Balance Sheet Dec 31, 2013 Dec.
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14.7-1Avatar Company uses the indirect method to prepare its statement of cash flows.  Using the worksheet                                           shown below, please enter the adjustments needed to record net income for the year of 2014 of $49,000. Balance Transaction Analysis Balance Panel A - Balance Sheet Dec 31, 2013 Dec 31, 2014 Cash $  18,000 $  21,000 Accounts receivable 35,000.
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15.2-21Olivera Company provides the following data for the year 2013: Net sales revenue$398,000 Cost of goods sold$255,000 Operating expenses$  95,000 Income tax expense$    9,000 On a vertical analysis, what percentage would be shown for operating expenses? A)   22.9% B)   66.4% C)   23.9% D)   24.5% 15.2-22Olivera Company provides the following data for the year 2013: Net sales revenue$398,000 Cost of goods sold$255,000 Operating expenses$ .
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14.6-29Avatar Company uses the direct method to prepare its statement of cash flows.  Please refer to the                                           following financial statement information for the year 2014: Comparative Balance Sheet 2014 2013 Increase/decrease Cash $  21,000 $  18,000 $  3,000 Accounts receivable 31,000 35,000 (4,000) Inventory 53,000 25,000 28,000 PP&E, net 120,000 90,000 30,000     Total assets $225,000 $168,000 $57,000.
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14.3-80Avatar Company uses the indirect method to prepare the statement of cash flows.  Please refer to the                                           following income statement: Sales revenue $240,000 Interest revenue 1,000 Gain on sale of plant assets 4,000    Total revenues and gains $245,000 Cost of goods sold 110,000 Salary expense 45,000 Depreciation expense 12,000 Other operating expenses 23,000 Interest expense 1,000.
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15.4-61What does the debt-to-equity ratio show? A)  The proportion of a company’s total financing that is accomplished by borrowing B)  The amount of profit earned by one share of common stock C)  The ability of a company to pay off its current liabilities D)  The potential for growth in the price of a share.
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15.4-1The current ratio is widely used to measure a company's ability to pay current liabilities.  15.4-2The inventory turnover ratio is a measure of the company's ability to pay all of its current liabilities if they                             come due immediately.  15.4-3The inventory turnover ratio indicates how rapidly inventory is sold. .
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15.4-21When preparing an annual report, the earnings per share amount is generally shown on a company’s                                           income statement. 15.4-22The price/earnings ratio is a measure that is valuable to investors when making investment decisions. 15.4-23The dividend yield will tell a shareholder how much of his investment will be returned in.
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15.2-1If an analyst wishes to see how a company’s net income as a percentage of net sales has changed from                                           one year to the next, a vertical analysis would be the most appropriate approach. 15.2-2If an analyst wishes to see a company’s current assets as a percentage.
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5.4-41Peartree Company provides the following data: BALANCE SHEET Dec 31, 2014 Dec 31, 2013 Cash $ 21,000 $ 18,000 Accounts receivable, net 31,000 35,000 Inventory 53,000 25,000 PP&E, net 120,000 90,000     Total assets $225,000 $168,000 Accounts payable $4,000 $  6,000 Accrued liabilities 2,000 1,000 Long-term notes payable 84,000 90,000     Total liabilities $ 90,000 $ 97,000 Common stock $ 30,000 $ .
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14.3-88Avatar Company uses the indirect method to prepare its statement of cash flows.  Please refer to the                                           following information for the year 2014. Comparative Balance Sheet 2014 2013 Increase/decrease Cash $   21,000 $   18,000 $    3,000 Accounts receivable 31,000 35,000 (4,000) Inventory 53,000 25,000 28,000 PP&E, net 120,000 90,000 30,000     Total assets $225,000 $168,000 $57,000 Accounts payable $   .
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14.6-21Which of the following would NOT appear on a statement of cash flows prepared using the direct method?  A) Collections from customers  B) Payments to suppliers  C) Interest received  D) Increase/decrease in current liabilities  14.6-22The only part that differs in a statement of cash flows using the direct method from.
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14.3-89Avatar Company uses the indirect method to prepare its statement of cash flows.  Please refer to the                                           following information for the year 2014. Comparative Balance Sheet 2014 2013 Increase/decrease Cash $  21,000 $  18,000 $  3,000 Accounts receivable 31,000 35,000 (4,000) Inventory 53,000 25,000 28,000 PP&E, net 120,000 90,000 30,000     Total assets $225,000 $168,000 $57,000 Accounts payable $ .
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15.1-23Portofino Company provides the following comparative income statement data.  Please complete a                                           horizontal analysis using the format shown here: (Dollar amounts in millions) 2014 2013 Amount of Increase (Decrease) Percentage Revenues $6,355 $4,920 Cost of revenues 3,370 2,200 Gross Profit 2,985 2,720 Operating expenses:    Sales and marketing expense 675 580    General and administrative expense 410 425.
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14.6-31Avatar Company uses the direct method to prepare its statement of cash flows.  Please refer to the                                           following financial statement information for the year 2014: Comparative Balance Sheet 2014 2013 Increase/decrease Cash $  21,000 $  18,000 $  3,000 Accounts receivable 31,000 35,000 (4,000) Inventory 53,000 25,000 28,000 PP&E, net 120,000 90,000 30,000     Total assets $225,000 $168,000 $57,000.
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15.1-25Perform a horizontal analysis of the following company's balance sheet. Include both the amount and the                                           percentage of change for each account. Account 2011 2010 Change Amount Change Percent Current assets $121,000 $100,000 Accounts receivable 117,000 125,000 Merchandise inventory 70,000 85,000 Current liabilities 63,500 50,000 Long-term liabilities 100,000 100,000 Common stock 50,000 50,000 Retained earnings 94,500 110,000   15.1-26Perform a horizontal analysis of the following company's income statement. Include both the amount and              .
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14.3-38An outflow of cash from an investing activity would be: A)  purchasing treasury stock. B)  issuing notes payable. C)  paying cash dividends to stockholders. D)  making loans to third parties. 14.3-39Cash borrowed on a mortgage note would be a(n) __________ activity. A)  operating B)  investing C)  financing D)  non-cash 14.3-40Which of the following is NOT a cash outflow from.
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15.4-11The excess of a company’s current assets over current liabilities is called working capital. 15.4-12Days in inventory is a ratio measure that shows how quickly a company can collect its receivables. 15.4-13The gross profit percentage is an indicator of how well a company is positioned to pay off its short-term              .
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15.1-11A company reported the following amounts of net income: 2011 $18,000 2012 $24,000 2013 $26,000 Which of the following is the percentage change in net income from 2011 to 2012?  A) 33.33%  B)   8.33%  C) 10.00%  D) 30.00%  15.1-12The following is a summary of information presented on the financial statements of The Cake Company                                          .
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15.3-11Which of the following is the definition of benchmarking?  A) Benchmarking is the study of percentage changes in financial statement line items year to year.  B) Benchmarking is the analysis of a financial statement that shows each item as a percentage of net sales or total assets. C) Benchmarking is the.
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16.1-1Managerial accounting’s focus is to provide information for internal planning and control.  16.1-2Management accounting often requires forward-looking data because of the futuristic nature of many                                           business decisions.  16.1-3Management accounting is influenced significantly by rules of GAAP and guidelines of the Securities                                           Exchange.
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14.4-1Which of the following sections from the statement of cash flows would include the purchase of a                                           building totally financed by a mortgage?  A) The investing section  B) The operating section  C) The financing section  D) The noncash investing and financing section 14.4-2Which of the following sections from.
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15.4-81The asset turnover ratio is used for which kind of evaluation? A)    The ability of a company to pay its current liabilities B)     The ability of a company to pay its long-term liabilities C)     The overall profitability of a company D)    Evaluating stock in a company from an investor’s perspective 15.4-82The rate of return on.
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15.2-29Please complete the vertical analysis on the income statement data in the format below: (Dollar amounts in millions) 2014 2013 Amount % of Total Amount % of Total Revenues $6,355 $4,920 Cost of revenues 3,370 2,200 Gross Profit $2,985 $2,720 Operating expenses:    Sales and marketing expense 675 580    General and administrative expense 410 425    Research and development expense 470 390    Other.
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14.6-1Qtopia Company uses the direct method to prepare its statement of cash flows. It has reported sales                                           revenues of $100,000 on its income statement for the year 2012.   If the balance in accounts receivable                                           has gone up by $4,000 during the year, then $4,000.
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16.1-11Management is accountable to its suppliers and vendors in which of the following ways? A)    Providing products to customers that are safe and free of defects B)     Repaying loans in a timely manner C)     Providing a return on the owner’s shareholders’ investment D)    Making timely payments and complying with contract terms 16.1-12Management is accountable to.
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14.7-7Avatar Company uses the indirect method to prepare its statement of cash flows. Using the worksheet                                           shown below, please enter the adjustments needed to record the following transactions: Purchased treasury stock for $3,000. Paid dividends of $10,000. Balance Transaction Analysis Balance Panel A - Balance Sheet Dec 31, 2013 Dec 31, /2014 Cash $   18,000 $   21,000 Accounts.
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14.3-86Avatar Company uses the indirect method to prepare its statement of cash flows.  Please refer to the                                           following sections of the comparative balance sheet: 2014 2013 Increase/decrease Accounts payable $   4,000 $   6,000 $ (2,000) Accrued liabilities 2,000 1,000 1,000 Long-term notes payable 84,000 90,000 (6,000)     Total liabilities $ 90,000 $ 97,000 $ (7,000) Common stock 30,000.
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15.2-28Please complete a vertical analysis on the balance sheet data shown in the format below: (Dollar amounts in millions) 2014 Amount % of total Assets Current assets: Cash $  10,000 Accounts receivable, net 15,600 Inventory 38,000    Total current assets 63,600 Property, plant and equipment, net 195,000 Other long-term assets 15,000 Total assets $273,600 Liabilities Current liabilities: Accounts payable $   8,500 Other current liabilities 1,400    Total.
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14.7-4Avatar Company uses the indirect method to prepare its statement of cash flows. Using the worksheet                                           shown below, please enter the adjustments needed to record the increases and decreases in current assets                                           (other than cash) and current liabilities. Balance Transaction Analysis Balance Panel A - Balance Sheet Dec 31, 2013 Dec.
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15.3-1Benchmarking is often done by comparing a company against either a key competitor or against the                                           industry average. 15.3-2A common-size statement reports only percentages–no dollar amounts.  15.3-3The common-size statement percentages are the same percentages that appear in horizontal analysis.  15.3-4Common-size statements allow the comparison of two or more.
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15.1-1Investors and creditors generally evaluate a company by using one year's data.  15.1-2Horizontal analysis compares each item in the income statement to the net sales amount.  15.1-3Benchmarking is the comparison of a company's current year results with an earlier year's performance.  15.1-4If an analyst wishes to see how gross profit.
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