MNG ACC Chapter 13 100% Guaranteed Distinction

In reporting discontinued operations, the income statement should show in a special section: - ANSWERSgains on the disposal of the discontinued component and losses on the disposal of the discontinued component Cool Stools Corporation has income before taxes of $400,000 and a loss on discontinued operations of $100,000. If the income tax rate is 25% on all items, the statement of comprehensive income should show income from continuing operations and discontinued operations, respectively of - ANSWERS$300,000 and $75,000 Which of the following would be considered an "other comprehensive income" item? - ANSWERSunrealized loss on available-for-sale securities Which situation below might indicate a company has a low quality of earnings? - ANSWERSMaintenance costs are capitalized and then depreciated In horizontal analysis, each item is expressed as a percentage of the: - ANSWERSbase-year amount Adams corporation reported net sales of $300,000, $330,000 in the years 2015,2016, and 2017, respectively. If 2015 is the base year, what percentage do 2017 sales represent of the base? - ANSWERS120% (330,000/300,000) The following schedule is a display of what type of analysis? current assets $200,000 25% property, plant, and equipment. $600,000. 75% Total assets. $800,000. - ANSWERSVertical analysis In vertical analysis, the base amount for depreciation expense is generally: - ANSWERSnet sales Which measure is an evaluation of a company ability to pay current liabilities? - ANSWERSaccounts receivable turnover and current ratio Which measure is useful in evaluating the efficiency in managing inventories? - ANSWERSinventory turnover and days in inventory Which of these is not a liquidity ratio - ANSWERSasset turnover Plano corporation reported net income $24,000, net sales $400,000, and average assets $600,000 for 2017. What is the 2017 profit margin - ANSWERS6% (net income/net sales)