The following financial statement information is available for Buil Corporation

The following financial statement information is available for Buil Corporation

137. The following
financial statement information is available for Buil Corporation:

2014
2013

Inventory $ 44,000 $ 43,000

Current
assets 80,000 106,000

Total
assets 432,000 358,000

Current
liabilities 25,000 36,000

Total
liabilities 102,000 88,000

The current ratio for 2014 is

a. .31:1.

b. 3.2:1.

c. 1.5:1.

d. 4.24:1.

138. The following
financial statement information is available for James Corporation:

2014
2013

Net
sales $780,000 $697,000

Cost
of goods sold 406,000 377,000

Net
income 120,000 80,000

Tax
expense 48,000 29,000

Interest
expense 14,000 14,000

The profit margin ratio for 2014 is

a. 15.4%.

b. 47.9%.

c. 32.1%.

d. 13.5%.

139. The following
financial statement information is available for Penn Corporation:

2014
2013

Stockholders’
equity – common $350,000 $270,000

Net
sales 784,000 697,000

Cost
of goods sold 406,000 377,000

Net
income 115,000 80,000

Inc
tax expense 48,000 29,000

Interest
expense 14,000 14,000

Dividends
paid to preferred

stockholders 24,000 20,000

Dividends
paid to common

stockholders 15,000 10,000

The return on common stockholders’
equity for 2014 is

a. 21.7%.

b. 32.9%.

c. 28.6%.

d. 26%.

140. The
following financial statement information is available for Long Corporation:

2014
2013

Net
income $115,000 $ 80,000

Income
tax expense 30,000 29,000

Interest
expense 18,000 14,000

Dividends
paid to preferred

stockholders 22,000 20,000

Dividends
paid to preferred

stockholders 15,000 10,000

MC 140. (Cont.)

The times interest earned for 2014 is

a. 7.4
times.

b. 6.4
times.

c. 9.1
times.

d. 7.8
times.

141. Dean
Corporation reported net income $58,000, net sales $500,000, and average assets
$800,000 for 2014. The 2014 profit margin was:

a. 5.8%.

b. 11.6%.

c. 62.5%.

d. 160%.

142. North
Company reports the following amounts for 2014:

Net income $ 160,000

Average
stockholders’ equity 2,000,000

Preferred
dividends 45,000

Par value
preferred stock 250,000

The 2014 rate of return on common
stockholders’ equity is:

a. 5.8%.

b. 6.6%.

c. 8.0%.

d. 9.1%.

143. Proctor Corporation
had beginning inventory $100,000, cost of goods sold $750,000, and ending
inventory $150,000. What was Proctor’s inventory turnover?

a. 3
times.

b. 6
times.

c. 7.5
times.

d. 5
times.

144. In 2014 Rome
Corporation reported income from operations $190,000, interest expense $60,000,
and income tax expense $40,000. Rome’s times interest earned ratio was:

a. 4.2
times.

b. 3.8
times.

c. 3.2
times.

d. 4.8
times.

145. Wrapp Company has
income before taxes of $350,000 and an extraordinary loss of $70,000. If the
income tax rate is 30% on all items, the income statement should show income
before irregular items and an extraordinary loss, respectively, of:

a. $350,000
and ($70,000)

b. $245,000
and ($24,000)

c. $245,000
and ($49,000)

d. $105,000
and ($21,000)

146. All of the following statements regarding
changes in accounting principles are true except:

a. Most
changes in accounting principles are only reported in current periods when the
principle change takes place.

b. Changes
in accounting principles are allowed when new principles are preferable to old
ones.

c. Most
changes in accounting principles are retroactively reported.

d. Consistency
is one of the biggest concerns when a change in accounting principle is
undertaken.


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