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121.The following information pertains to Carlton Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Assets Cash and short-term investments $ 40,000 Accounts receivable (net) 25,000 Inventory 20,000 Property, plant and equipment 210,000 Total assets $295,000 Liabilities and Stockholders’ Equity Current liabilities 60,000 Long-term liabilities 85,000 Stockholders’ equity-common 150,000 Total liabilities.
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51.A clean audit opinion is the same as a qualified audit opinion. 52.Unusual items affecting the current period’s income statement consist of changes in accounting principles and discontinued operations. 53.When a corporation discontinues a segment of its operations at a loss, the loss should be reported as a separate item after income.
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101.The tendency of the rate earned on stockholders' equity to vary disproportionately from the rate earned on total assets is sometimes referred to as A.leverage B.solvency C.yield D.quick assets 102.The balance sheets at the end of each of the first two years of operations indicate the following: 2012 2011 Total current assets $600,000 $560,000 Total investments 60,000 40,000 Total property, plant, and equipment 900,000 700,000 Total.
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159.The cash flows from operating activities are reported by the direct method on the statement of cash flows. Determine the following: (a) If sales for the current year were $475,000 and accounts receivable increased by $39,000 during the year, what was the amount of cash received from customers? (b) If income tax for.
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1.Comparable financial statements are designed to compare the financial statements of two or more corporations. 2.In horizontal analysis, the current year is the base year. 3.On a common-sized income statement, all items are stated as a percent of total assets or equities at year-end. 4.The percentage analysis of increases and decreases in corresponding.
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41.The dividend yield rate is equal to the dividends per share divided by the par value per share of common stock. 42.Comparing dividends per share to earnings per share indicates the extent to which the corporation is retaining its earnings for use in operations. 43.When you are interpreting financial ratios, it is.
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130.Rent expense on a factory building would be treated as a(n): A.period cost B.product cost C.direct cost D.both A and C are correct 131.Rent expense incurred on a factory building would be treated as a(n): A.indirect cost B.period cost C.product cost D.both A and C are correct 132.Which of the following is not a factory overhead cost? A.materials used directly in.
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41.Prime costs are the combination of direct labor costs and factory overhead costs. 42.Prime costs are the combination of direct materials and direct labor costs. 43.Conversion costs are the combination of direct labor, direct material and factory overhead costs. 44.Product costs are also referred to as inventoriable costs. 45.Period costs include direct materials and.
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176.Revenue and expense data for Martinez Company are as follows: 2012 2011 Administrative expenses $37,000 $20,000 Cost of goods sold 350,000 320,000 Income tax 40,000 32,000 Net sales 800,000 700,000 Selling expenses 150,000 110,000 (a) Prepare a comparative income statement, with vertical analysis, stating each item for both 2012 and 2011 as a percent of sales. (b) Comment upon significant changes disclosed by the comparative income statement. 177.The following data are.
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146.What is a major advantage of using percentages rather than dollar changes in doing horizontal and vertical analysis? 147.The following items are reported on a company’s balance sheet: Cash $350,000 Marketable securities 50,000 Accounts receivable 200,000 Inventory 240,000 Accounts payable 300,000 Determine the (a) current ratio, and (b) quick ratio. Round your answer to one decimal place. 148.The following items are reported on.
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110.Cost of Materials Used $40,000 Direct Labor costs $55,000 Factory Overhead $32,000 Work in Process, beg. $28,000 Work in Process, end. $18,000 What is Cost of Goods Manufactured? A.$173,000 B.$97,000 C.$117,000 D.$137,000 111.Cost of Materials Used $40,000 Direct Labor costs $55,000 Factory Overhead $32,000 Work in Process, beg. $28,000 Work in Process, end. $18,000 Finished Goods,beg. $28,000 Finished Goods, end. $18,000 What is Cost of Goods Sold? A.$147,000 B.$137,000 C.$10,000 D.$128,000 112. Beginning.
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181.The following information has been condensed from the December 31 balance sheets of Hanson Co.: 2012 2011 Assets: Current assets $ 825,500 $674,300 Fixed assets (net) 1,473,600 1,275,300 Total assets $2,299,100 $1,949,600 Liabilities: Current liabilities $313,500 $309,600 Long-term liabilities 703,000 545,000 Total liabilities $1,016,500 $854,600 Stockholders' equity $1,282,600 $1,095,000 Total liabilities and stockholders' equity $2,299,100 $1,949,600 (a) Determine the ratio of fixed assets to long-term liabilities for 2012 and 2011. (b) Determine the ratio of liabilities to stockholders'.
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166.The balance sheet for Borglum Company at the end of the current fiscal year indicated the following: Bonds payable, 10% (issued in 2000, due in 2020) $5,000,000 Preferred 10% stock, $100 par 1,000,000 Common stock, $10 par 2,000,000 Income before income tax was $1,500,000 and income taxes were $200,000, for the current year. Cash dividends paid on.
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120.The primary goal of managerial accounting is to provide information to: A.investors B.creditors C.management D.external auditors 121.Goods that are partially completed by a manufacturer are referred to as: A.merchandise inventory B.work in process inventory C.finished goods inventory D.materials inventory 122.A plant manager’s salary may be referred to as: A.either a direct cost or an indirect cost since managerial accounting is not.
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71.In a common size balance sheet, the 100% figure is: A.total property, plant and equipment. B.total current assets. C.total liabilities. D.total assets. 72.In a common size income statement, the 100% figure is: A.net cost of goods sold. B.net income. C.gross profit. D.net sales. 73.Horizontal analysis is a technique for evaluating financial statement data A.for one period of time. B.over a period.
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51.Managerial information is for external as well as internal stakeholders. 52.A report analyzing how many products need to be sold to cover operating costs is not typically a managerial accounting report. 53.A report analyzing the dollar savings of purchasing new equipment to speed up the production process is a managerial accounting report. 54.A.
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91.Which of the following ratios provides a solvency measure that shows the margin of safety of noteholders or bondholders and also gives an indication of the potential ability of the business to borrow additional funds on a long-term basis? A.ratio of fixed assets to long-term liabilities B.ratio of net sales to assets C.number.
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61.The relationship of $275,000 to $125,000, expressed as a ratio, is A.2.0 to 1 B.2.2 to 1 C.2.5 to 1 D.0.45 to 1 62.The percentage analysis of increases and decreases in individual items in comparative financial statements is called A.vertical analysis B.solvency analysis C.profitability analysis D.horizontal analysis 63.Which of the following below generally is the most useful in.
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161.Based on the following, what is free cash flow? Cash from Operations $155,000 Cash from Investing $(30,000) Cash from Financing $30,000 Operations includes $2,000 for depreciation. Investing includes the purchase of a replacement asset for $100,000 and the sale of the one used in production, which is now obsolete, for $70,000. Financing is made up of $70,000.
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150.For Garrison Corporation, the working capital at the end of the current year is $10,000 more than the working capital at the end of the preceding year, reported as follows: Current year Preceding year Current assets: Cash, marketable securities, and receivables $80,000 $84,000 Inventories 120,000 66,000 Total current assets $200,000 $150,000 Current liabilities 100,000 60,000 Working capital $100,000 $90,000 Required: Has the current position improved? Explain. 151.A company reports the following: Net.
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168.Bradenton Company reports the following for 2012: Income from continuing operations before income tax $500,000 Extraordinary property loss from hurricane $60,000* Loss from discontinued operations $90,000* Weighted average number of shares outstanding 40,000 Applicable tax rate 40% * Net of any tax effect Required: (1) Prepare a partial income statement for Bradenton Company beginning with income from continuing operations before income tax. (2) Calculate the.
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153.A company reports the following: Cost of goods sold $730,000 Average inventory $80,000 Determine the (a) inventory turnover, and (b) number of days’ sales in inventory. Round your answer to one decimal place. 154.The following information was taken from Slater Company’s balance sheet: Fixed assets (net) $1,250,000 Long-term liabilities $500,000 Total liabilities $672,000 Total stockholders’ equity $1,680,000 Determine the company’s (a) Ratio of fixed assets.
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100.Which of the following manufacturing costs is an indirect cost of producing a product? A.Oil lubricants used for factory machinery B.Commissions for sales personnel C.Hourly wages of an assembly worker D.Memory chips for a microcomputer manufacturer 101.Prime costs are A.direct materials and factory overhead B.direct materials and direct labor C.direct labor and factory overhead D.period costs and factory overhead 102.Conversion.
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171.Match each item with its definition. 1.An analysis of a company’s ability to pay its current liabilities. Horizontal analysis 2.Occurs when a company abandons a segment. Extraordinary Items 3.Something that is both unusual and infrequent. Current position analysis 4.This requires a restatement of prior period financial statements. Vertical analysis 5.A percentage analysis of increases and decreases in related.
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180.From the following data, determine for the current year the (a) rate earned on total assets, (b) rate earned on stockholders' equity, (c) rate earned on common stockholders' equity, (d) earnings per share on common stock, (e) price-earnings ratio on common stock, and (f) dividend yield on common stock. Assume.
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140.Cost of goods manufactured is equal to: A.total manufacturing costs plus ending materials inventory less beginning materials inventory B.cost of goods sold beginning work in process inventory less ending work in process inventory C.total manufacturing costs plus ending work in process inventory less beginning work in process inventory D.total manufacturing costs plus beginning work.
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61.Period costs are operating costs that are expensed in the period in which the goods are sold. 62.Factory overhead includes all manufacturing costs except direct materials and direct labor. 63.Labor costs that are directly traceable to the product are part of factory overhead. 64.Product costs include direct labor and advertising expense. 65.Indirect labor and.
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31.The ratio of fixed assets to long-term liabilities provides a measure of a firm’s ability to pay dividends. 32.A decrease in the ratio of liabilities stockholders' equity indicates an improvement in the margin of safety for creditors. 33.In computing the ratio of net sales to assets, long-term investments are excluded from average.
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1.Accounting is an information system that provides essential data about the economic activities of an entity to various users to aid them in making informed judgments and decisions. 2.Managerial accounting reports are prepared according to generally accepted accounting principles. 3.Managerial accounting information includes both historical and estimated data. 4.Since there are few rules.
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174.The comparative balance sheet of Ramos Company appears below: (a) RAMOS COMPANY Comparative Balance Sheet December 31, 2012 and 2011 Assets 2012 2011 Current assets $ 440 $280 Plant assets 675 520 Total assets $1,115 $800 Liabilities and stockholders' equity Current liabilities $ 280 $120 Long-term debt 250 160 Common stock 325 320 Retained earnings 260 200 Total liabilities and stockholders' equity $1,115 $800 Instructions (a) Using horizontal analysis, show.
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21.The cost of wages paid to employees directly involved in converting materials to finished product is classified as direct labor cost. 22.If the cost of employee wages is not a significant portion of the total product cost, the wages are classified as direct materials cost. 23.For a construction contractor, the wages of.
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80.Which of the following are basic phases of the management process? A.Supervising and directing B.Decision making and supervising C.Organizing and directing D.Planning and controlling 81.What term is used to describe the process of monitoring operating results and comparing actual results with the expected results? A.Improving B.Controlling C.Directing D.Planning 82.What term is used to describe the process of developing the organization’s.
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184.Prepare an Income Statement using the following data for Young Adventures for the year ended December 31, 2012: Net Sales $21,500,000 Cost of Merchandise Sold 10,900,000 Operating Expenses 6,300,000 Losses from Asset Impairment 2,800,000 Income Tax Expense 500,000 Loss on Discontinued Operations 100,000 Net Loss on Extraordinary Item 125,000 185.From the following data for Norton Company for the year ended December31, 2012 prepare a multiple-step.
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81. Accounts payable $30,000 Accounts receivable 65,000 Accrued liabilities 7,000 Cash 20,000 Intangible assets 40,000 Inventory 72,000 Long-term investments 100,000 Long-term liabilities 75,000 Marketable securities 36,000 Notes payable (short-term) 20,000 Property, plant, and equipment 625,000 Prepaid expenses 2,000 Based on the above data, what is the quick ratio, rounded to one decimal point? A.2.4 B.3.4 C.2.1 D.1.5 82.A company with working capital of $500,000 and a current ratio of 2.5 pays a $85,000 short-term liability. The amount of working capital.
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161.A company reports the following: Net income $270,000 Preferred dividends $ 10,000 Shares of common stock outstanding 20,000 Market price per share of common stock $36.40 Determine the company’s price-earnings ratio. Round your answer to one decimal place. 162.Why would you compare or not compare Coca-Cola and Pepsi-Cola (PepsiCo) as companies to each other? 163.Revenue and expense data for Young Technologies.
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70.In order to be useful to managers, management accounting reports should possess all of the following characteristics EXCEPT: A.provide objective measures of past operations and subjective estimates about future decisions B.be prepared in accordance with generally accepted accounting principles C.be provided at any time management needs information D.be prepared to report information for any.
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11.The controller's staff consists of management accountants responsible for systems and procedures, general accounting, budgets, taxes, and cost accounting. 12.Managerial accounting reports must be useful to the user of the information. 13.Planning is the process of monitoring operating results and comparing actual results with the expected results. 14.Planning is the process of developing.
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21.A balance sheet shows cash, $75,000; marketable securities, $115,000; receivables, $150,000 and $222,500 of inventories. Current liabilities are $225,000. The current ratio is 2.5 to 1. 22.If a firm has a current ratio of 2, the subsequent receipt of a 60-day note receivable on account will cause the ratio to decrease. 23.If.
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31.Conversion cost is the combination of direct materials cost and factory overhead cost. 32.Factory overhead is an example of a product cost. 33.Direct labor costs are included in the conversion costs of a product. 34.The costs of materials and labor that do not enter directly into the finished product are classified as factory.
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164.The following data were extracted from the income statement of Maine Solutions, Inc. 2012 2011 Sales $1,139,600 $1,192,320 Beginning inventories 80,000 64,000 Cost of goods sold 500,800 606,000 Ending inventories 72,000 80,000 Required: (1) Determine for each year: a. The inventory turnover; and b. The number of days’ sales in inventory. Round to nearest dollar and one decimal place. (2) What conclusions can be drawn from these data concerning the inventories? 165.The following selected.
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175.Condensed data taken from the ledger of Joplin Company at December 31, 2012 and 2011, are as follows: 2012 2011 Current assets $160,000 $130,000 Property, plant, and equipment 450,000 400,000 Intangible assets 20,700 30,000 Current liabilities 70,000 80,000 Long-term liabilities 210,000 250,000 Common stock 225,000 150,000 Retained earnings 125,700 80,000 Prepare a comparative balance sheet, with horizontal analysis, for December 31, 2012 and 2011. (Round percents to one decimal point.) .
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90.If the cost of direct materials is a small portion of total production cost, it may be classified as part of: A.direct labor cost B.selling and administrative costs C.miscellaneous costs D.factory overhead cost 91.The cost of wages paid to employees directly involved in the manufacturing process in converting materials into finished product is classified as: A.factory.
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111.Which one of the following is not a characteristic generally evaluated in ratio analysis? A.liquidity B.profitability C.solvency D.marketability 112.Short-term creditors are typically most interested in assessing A.marketability. B.profitability. C.operating results. D.solvency. 113.A common measure of liquidity is A.ratio of net sales to assets. B.dividends per share of common stock. C.receivable turnover. D.profit margin. 114.In 2012 Robert Corporation had net income of $250,000 and paid dividends.
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141.The Cash and Accounts Receivable for a company are provided below: 2012 2011 Cash $75,000 $50,000 Accounts receivable (net) $76,800 $80,000 Based on this information, what is the amount and percentage of increase or decrease that would be shown in a balance sheet with horizontal analysis? 142.The Cash and Accounts Receivable for a company are provided below: 2012 2011 Cash $62,400 $60,000 Accounts receivable (net) $44,000 $50,000 Based on.
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178.The following data are taken from the financial statements: Current Preceding Year Year Net sales $3,600,000 $4,000,000 Cost of goods sold 2,000,000 2,700,000 Average inventory 332,000 328,000 Inventory, end of year 372,000 347,000 (a) Determine for each year (1) the inventory turnover and (2) the number of days' sales in inventory. (b) Comment on the favorable and unfavorable trends revealed by the data. 179.The following data are taken from the financial.
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157.A company reports the following: Net sales $2,520,000 Average total assets $1,400,000 Determine the ratio of net sales to total assets. Round your answer to one decimal place. 158.A company reports the following income statement and balance sheet information for the current year: Net income $ 180,000 Interest expense $ 20,000 Average total assets $ 2,000,000 Determine the rate earned on total.
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