Test Bank for Introduction to
Managerial Accounting 10e
(2025 Release) By Peter Brewer,
Ray Garrison, Eric Noreen (All
Chapters 1-14, 100% Original
Verified, A+ Grade)
This is the only Original Test
Bank for 2025 (10th Edition). All
other files in the Market are
Fake/Old/Wrong Edition.
Test Bank Includes MCQs only
with Answers. Essay Questions
have no Answers.
All Chapters Arranged Reverse: 14-1
,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 $ 170 $ 100
Accounts receivable, net 200 200
Inventory 150 140
Prepaid expenses 100 100
Total current assets $ 620 $ 540
Current liabilities:
Accounts payable $ 210 $ 190
Accrued liabilities 40 40
Notes payable, short term 100 90
Total current liabilities $ 350 $ 320
Sales on account during the year totaled $1,250 thousand. Cost of goods sold was $850
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.
. 1
,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 $ 215 $ 320
Accounts receivable, net 350 370
Inventory 320 290
Prepaid expenses 20 20
Total current assets 905 1,000
Plant and equipment, net 1,150 1,260
Total assets $ 2,055 $ 2,260
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 290 $ 320
Accrued liabilities 50 50
Notes payable, short term 40 40
Total current liabilities 380 410
Bonds payable 280 470
Total liabilities 660 880
Stockholders’ equity:
Common stock, $2 par value 200 200
Additional paid-in capital 330 330
Retained earnings 865 850
Total stockholders’ equity 1,395 1,380
Total liabilities & stockholders’ equity $ 2,055 $ 2,260
Income Statement
For the Year Ended December 31, Year 2
(in thousands of dollars)
Sales (all on account) $ 1,550
Cost of goods sold 980
Gross margin 570
Selling and administrative expense 465
Net operating income 105
. 2
, Interest expense 20
Net income before taxes 85
Income taxes (30%) 26
Net income $ 59
Dividends on common stock during Year 2 totaled $44 thousand. The market price of
common stock at the end of Year 2 was $13.00 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
Managerial Accounting 10e
(2025 Release) By Peter Brewer,
Ray Garrison, Eric Noreen (All
Chapters 1-14, 100% Original
Verified, A+ Grade)
This is the only Original Test
Bank for 2025 (10th Edition). All
other files in the Market are
Fake/Old/Wrong Edition.
Test Bank Includes MCQs only
with Answers. Essay Questions
have no Answers.
All Chapters Arranged Reverse: 14-1
,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 $ 170 $ 100
Accounts receivable, net 200 200
Inventory 150 140
Prepaid expenses 100 100
Total current assets $ 620 $ 540
Current liabilities:
Accounts payable $ 210 $ 190
Accrued liabilities 40 40
Notes payable, short term 100 90
Total current liabilities $ 350 $ 320
Sales on account during the year totaled $1,250 thousand. Cost of goods sold was $850
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.
. 1
,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 $ 215 $ 320
Accounts receivable, net 350 370
Inventory 320 290
Prepaid expenses 20 20
Total current assets 905 1,000
Plant and equipment, net 1,150 1,260
Total assets $ 2,055 $ 2,260
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 290 $ 320
Accrued liabilities 50 50
Notes payable, short term 40 40
Total current liabilities 380 410
Bonds payable 280 470
Total liabilities 660 880
Stockholders’ equity:
Common stock, $2 par value 200 200
Additional paid-in capital 330 330
Retained earnings 865 850
Total stockholders’ equity 1,395 1,380
Total liabilities & stockholders’ equity $ 2,055 $ 2,260
Income Statement
For the Year Ended December 31, Year 2
(in thousands of dollars)
Sales (all on account) $ 1,550
Cost of goods sold 980
Gross margin 570
Selling and administrative expense 465
Net operating income 105
. 2
, Interest expense 20
Net income before taxes 85
Income taxes (30%) 26
Net income $ 59
Dividends on common stock during Year 2 totaled $44 thousand. The market price of
common stock at the end of Year 2 was $13.00 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
