ACC 201 Week 5 Quiz 5
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ACC 201 Week 5 Quiz 5
EX. 09-080
Revenue and expense data for Reuters Company are as follows:
2017
2016
Administrative expenses
$24,750
$18,000
Cost of goods sold
500,000
375,000
Income tax expense
11,600
12,000
Net sales
750,000
600,000
Selling expenses
182,250
154,800
Prepare a comparative income statement, with vertical analysis, stating each item for both 2017 and 2016 as a percent of sales. Round percentage values to one decimal place and state as a whole number. Do not enter the percent sign. (For example, enter .9569 as "95.7").
EX. 08-135
The following accounts and their balances appear in the ledger on December 31 of the current year:
Common Stock, $20 par
$400,000
Paid-In Capital in Excess of Par
44,000
Retained Earnings
265,000
Treasury Stock
20,000
Prepare the Stockholders' Equity section of the balance sheet as of December 31. Twenty five thousand shares of common stock are authorized, and 1,000 shares have been reacquired.
EX.08-133
Indicate whether the following actions would (+) increase, (-) decrease, or (0) not affect a company's total assets, liabilities, and stockholders' equity.
MC.08-107
Which of the following is a reason for a corporation to buy back its own stock?
What is the effect of declaring a stock dividend on the liabilities and stockholders' equity section of the balance sheet?
Total property, plant, and equipment
900,000
700,000
Total current liabilities
125,000
80,000
Total long-term liabilities
350,000
250,000
Preferred 9% stock, $100 par
100,000
100,000
Common stock, $10 par
600,000
600,000
Paid-in capital in excess of par--common stock
60,000
60,000
Retained earnings
325,000
210,000
Based on the above information, if net income is $130,000 and interest expense is $40,000 for 2017, and the market price is $40, what is the price-earnings ratio on common stock (round to one decimal place)?
A company sold 200 shares of common stock with a par value of $5 at a price of $13 per share. What is the effect on the accounts of this transaction?
The following data are taken from the financial statements:
Current
Preceding
Year
Year
Net sales
$3,592,000
$4,056,000
Cost of goods sold
2,092,000
2,656,000
Average monthly 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 days' sales in inventory. Round inventory turnover answers to one decimal place and number of days' sales in inventory, (including intermediate calculations) to two decimal places.
MC.09-067
Garnet Company reported the following on its income statement:
Income before income taxes
$450,000
Income tax expense
52,000
Net income
$398,000
An analysis of the income statement revealed that interest expense was $50,000. Garnet Company's times interest earned are earned was:
The excess of issue price over par of common stock is termed as:
MC.08-112
Which of the following is an effect of payment of cash dividends on a company's financial statements?
d.A decrease in cash and stockholders' equity
Treasury stock is reported in the _____ section of the balance sheet.
a.investment
On April 1, 10,000 shares of $20 par common stock were issued at $24. Illustrate the effects on the accounts and the financial statements.
EX.09-079
Condensed data taken from the ledger of Crawford Company at December 31, 2017 and 2016, are as follows:
2017
2016
Current assets
$200,000
$180,000
Property, plant, and equipment
450,000
400,000
Intangible assets
20,700
30,000
Current liabilities
70,000
80,000
Long-term liabilities
200,000
250,000
Common stock
275,000
200,000
Retained earnings
125,700
80,000
Prepare a comparative balance sheet, with horizontal analysis, for December 31, 2017 and 2016. Round percentage values to one decimal place and state as a whole number. Do not enter the percent sign. (For example, enter .9569 as "95.7").
MC.09-076
Sarbanes-Oxley Act of 2002 requires which of the following report to be prepared by the management of the company?
MC.09-068
The balance sheet and income statement for the year ended 2016 indicate the following:
Bonds payable, 10% (issued 1998, due 2022)
$1,200,000
Preferred 5% stock, $100 par (no change during year)
350,000
Common stock, $50 par (no change during year)
2,100,000
Income before income tax for year
3,100,000
Income tax for year
72,000
Common dividends paid
58,000
Preferred dividends paid
16,300
The reduction of par or stated value of stock by issuance of a proportionate number of additional shares is termed a:
a.stock option.
On which of the following dates, a company incurs liability for a dividend?
MC.08-110
Emerald Co. has 50,000 shares at $12 par common stock outstanding. If the company decides to buy 20% of its shares for $15 per share, the total stockholders' equity will:
EX.09-082
The following items are reported on a company's balance sheet:
Cash
$258,000
Marketable securities
114,000
Accounts receivable
187,000
Inventory
204,000
Notes payable (short-term)
249,000
Determine the (a) current ratio and (b) quick ratio. Round your answers to one decimal place.
MC.08-117.Algo
A corporation has 55,191 shares of $35 par value stock outstanding that has a current market value of $261. If the corporation issues a 4-for-1 stock split, what amount approximately will the market value of the stock fall to?
MC.08-104
A company sold 200 shares of common stock with a par value of $5 at a price of $12 per share. Which section of the statement of cash flows will contain this transaction?
MC.09-075
The following information is available for Morgan Corporation:
2016
Market price per share of common stock
$25.00
Earnings per share on common stock
1.25
MC.09-074
d.cannot be determined without more information.
[Solved] ACC 201 Week 5 Quiz 5
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- Submitted On 15 Jul, 2020 11:20:12
- Tutor-571
- Rating : 51
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- Solutions : 5085
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