Test Bank For
Introduction to Managerial
Accounting 9th Edition By
Peter Brewer, Ray Garrison,
Eric Noreen
(All Chapters 1-14, 100%
Original Verified, A+ Grade)
All Chapters Arranged
Reverse: 14-1
This is The Original Test Bank
For 9th Edition, All other Files
in The Market are
Fake/Old/Wrong Edition.
,Chapter 14
Student name:__________
1) Excerpts from Candle Corporation's most recent balance sheet (in thousands of dollars)
appear below:
Year 2 Year 1
Current assets:
Cash $ 166 $ 100
Accounts receivable, net 196 196
Inventory 146 136
Prepaid expenses 96 96
Total current assets $ 604 $ 528
Current liabilities:
Accounts payable $ 206 $ 186
Accrued liabilities 36 36
Notes payable, short term 96 86
Total current liabilities $ 338 $ 308
Sales on account during the year totaled $1,230 thousand. Cost of goods sold was $830
thousand.
Required:
Compute the following for Year 2:
a. Working capital.
b. Current ratio.
c. Acid-test (quick) ratio.
d. Accounts receivable turnover.
e. Average collection period.
f. Inventory turnover.
g. Average sale period.
Version 1 1
,Chapter 14
2) Hyrkas Corporation's most recent balance sheet and income statement appear below:
Balance Sheet
December 31, Year 2 and Year 1
(in thousands of dollars)
Year 2 Year 1
Assets
Current assets:
Cash $ 250 $ 390
Accounts receivable, net 420 440
Inventory 390 360
Prepaid expenses 20 20
Total current assets 1,080 1,210
Plant and equipment, net 1,360 1,540
Total assets $ 2,440 $ 2,750
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 360 $ 390
Accrued liabilities 50 50
Notes payable, short term 40 40
Total current liabilities 450 480
Bonds payable 350 635
Total liabilities 800 1,115
Stockholders’ equity:
Common stock, $2 par value 200 200
Additional paid-in capital 330 330
Retained earnings 1,110 1,105
Total stockholders’ equity 1,640 1,635
Total liabilities & stockholders’ equity $ 2,440 $ 2,750
Income Statement
For the Year Ended December 31, Year 2
(in thousands of dollars)
Sales (all on account) $ 1,620
Cost of goods sold 1,050
Gross margin 570
Selling and administrative expense 530
Version 1 2
, Chapter 14
Net operating income 40
Interest expense 20
Net income before taxes 20
Income taxes (30%) 6
Net income $ 14
Dividends on common stock during Year 2 totaled $9 thousand. The market price of common
stock at the end of Year 2 was $3.00 per share.
Required:
Compute the following for Year 2: a. Gross margin percentage.
b. Earnings per share. c. Price-earnings ratio.
d. Dividend payout ratio. e. Dividend yield ratio.
f. Return on total assets. g. Return on equity.
h. Book value per share. i. Working capital.
j. Current ratio. k. Acid-test (quick) ratio.
l. Accounts receivable turnover. m. Average collection period.
n. Inventory turnover. o. Average sale period.
p. Times interest earned ratio. q. Debt-to-equity ratio.
3) Degollado Corporation's most recent income statement appears below:
Income Statement
For the Year Ended December 31
Sales (all on account) $ 241,000
Cost of goods sold 91,000
Gross margin 150,000
Selling and administrative expenses 65,000
Net operating income 85,000
Version 1 3
Introduction to Managerial
Accounting 9th Edition By
Peter Brewer, Ray Garrison,
Eric Noreen
(All Chapters 1-14, 100%
Original Verified, A+ Grade)
All Chapters Arranged
Reverse: 14-1
This is The Original Test Bank
For 9th Edition, All other Files
in The Market are
Fake/Old/Wrong Edition.
,Chapter 14
Student name:__________
1) Excerpts from Candle Corporation's most recent balance sheet (in thousands of dollars)
appear below:
Year 2 Year 1
Current assets:
Cash $ 166 $ 100
Accounts receivable, net 196 196
Inventory 146 136
Prepaid expenses 96 96
Total current assets $ 604 $ 528
Current liabilities:
Accounts payable $ 206 $ 186
Accrued liabilities 36 36
Notes payable, short term 96 86
Total current liabilities $ 338 $ 308
Sales on account during the year totaled $1,230 thousand. Cost of goods sold was $830
thousand.
Required:
Compute the following for Year 2:
a. Working capital.
b. Current ratio.
c. Acid-test (quick) ratio.
d. Accounts receivable turnover.
e. Average collection period.
f. Inventory turnover.
g. Average sale period.
Version 1 1
,Chapter 14
2) Hyrkas Corporation's most recent balance sheet and income statement appear below:
Balance Sheet
December 31, Year 2 and Year 1
(in thousands of dollars)
Year 2 Year 1
Assets
Current assets:
Cash $ 250 $ 390
Accounts receivable, net 420 440
Inventory 390 360
Prepaid expenses 20 20
Total current assets 1,080 1,210
Plant and equipment, net 1,360 1,540
Total assets $ 2,440 $ 2,750
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 360 $ 390
Accrued liabilities 50 50
Notes payable, short term 40 40
Total current liabilities 450 480
Bonds payable 350 635
Total liabilities 800 1,115
Stockholders’ equity:
Common stock, $2 par value 200 200
Additional paid-in capital 330 330
Retained earnings 1,110 1,105
Total stockholders’ equity 1,640 1,635
Total liabilities & stockholders’ equity $ 2,440 $ 2,750
Income Statement
For the Year Ended December 31, Year 2
(in thousands of dollars)
Sales (all on account) $ 1,620
Cost of goods sold 1,050
Gross margin 570
Selling and administrative expense 530
Version 1 2
, Chapter 14
Net operating income 40
Interest expense 20
Net income before taxes 20
Income taxes (30%) 6
Net income $ 14
Dividends on common stock during Year 2 totaled $9 thousand. The market price of common
stock at the end of Year 2 was $3.00 per share.
Required:
Compute the following for Year 2: a. Gross margin percentage.
b. Earnings per share. c. Price-earnings ratio.
d. Dividend payout ratio. e. Dividend yield ratio.
f. Return on total assets. g. Return on equity.
h. Book value per share. i. Working capital.
j. Current ratio. k. Acid-test (quick) ratio.
l. Accounts receivable turnover. m. Average collection period.
n. Inventory turnover. o. Average sale period.
p. Times interest earned ratio. q. Debt-to-equity ratio.
3) Degollado Corporation's most recent income statement appears below:
Income Statement
For the Year Ended December 31
Sales (all on account) $ 241,000
Cost of goods sold 91,000
Gross margin 150,000
Selling and administrative expenses 65,000
Net operating income 85,000
Version 1 3
