chapter 15 test.docx - 1 Which of the following best...

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1) Which of the following best describes horizontal analysis? A. Showing each figure as a percentage of some other amount, such as total assets B. comparing figures year-to-year C. calculating key ratios to evaluate performance D. comparing a company’s financial figures with other companies that are leaders 2) The company reported the following amounts of net income 2011 $18,000 2012 $24,000 2013 $26,000 Which of the following is the percentage change in net income from 2011 to 2012? A. 8.33% B. 10.00% C. 33.33% D. 30.00% 3)The following is a summary of information represented on the financial statements of the cake company on December 31, 2014. Account 2014 2013 Current assets 65,000 50,000 Accounts Receivable 80,000 75,000 merchandise inventory 50,000 40,000 current liabilities 75,000 50,000 long-term liabilities 30,000 50,000 common stock 50,000 40,000 retained earnings 40,000 25,000 net sales revenues 525,000 500,000 cost of goods sold 400,000 395,000 gross profit 125,000 105,000 selling in general expenses 45,000 50,000 net income before income taxes expense 80,000 55,000 income tax expense 24,000 16 500 net income 56,000 38 500 A.
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  • Fall '14
  • BasilMoutsatsos

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