exam1.docx - At the beginning of the year Company ABC...

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At the beginning of the year, Company ABC reported total liabilities of $185,300. At the end of the year, the company reported total liabilities of $220,400. Total assets at the end of the year were $43,000 larger than at the beginning of the year. Assuming that the company declared and paid a $3,100 dividend during theyear, what was net income (loss) for the year?Select one:a. $11,000 Liabilities increased $35,100. Assets increased $43,000. The only way that is possible is if equity increased $7,900. That means Retained Earnings was $7,900.Retained Earnings plus Dividends equal Net Income. $7,900+$3,100=$11,000.b. $177,400c. $7,900d. $12,300FeedbackYour answer is correct.The correct answer is: $11,000Question 2IncorrectMark 0.00 out of 10.00Flag questionQuestion textIf ending inventory on the last day of the year is overstated by $14,000, what is the effect on net income for the current year?Select one:a. Net income is overstated by $14,000.b. Net income is overstated by $28,000.c. The answer cannot be determined from the information given.
d. Net income is understated by $14,000. FeedbackYour answer is incorrect.The correct answer is: Net income is overstated by $14,000.Question 3Partially correctMark 8.00 out of 10.00Flag questionQuestion textBelow is selected financial information for Panettone, Inc.In the answer boxes below, select the right answer from the drop-down menu. Each answer is worth 2 points. Answers are rounded to two decimals.RatioAnswer Working CapitalAnswer
 Return on AssetsAnswerReturn on EquityAnswer Debt-to-Equity RatioAnswer Dividend YieldAnswer FeedbackRatioCorrect Answer Working Capital$600Return on Assets0.33Return on Equity0.73Debt-to-Equity 1.25
RatioDividend Yield0.11Question 4CorrectMark 10.00 out of 10.00Flag questionQuestion textOn December 31, 2015, Company A reports total assets of $4,500,000 and total equity of $2,345,000. All liabilities are current (the company has no long-term debt). The company has a current ratio of 0.7. How much are current assets?Select one:a. $1,508,500 (4,500,000-2,345,000)*0.7=1,508,500b. $3,078,571c. $1,641,500d. -$646,500FeedbackYour answer is correct.The correct answer is: $1,508,500Question 5Partially correctMark 8.00 out of 10.00Flag questionQuestion text
Below is selected financial information for Panettone, Inc.In the answer boxes below, select the right answer from the drop-down menu. Each answer is worth 2 points. Answers are rounded to two decimals.RatioAnswer Days Sales in InventoryAnswer Average Collection PeriodAnswer
Dividend Payout RatioAnswer Return on SalesAnswer Current RatioAnswer FeedbackRatioCorrect Answer Days Sales in Inventory79.84Average Collection Period53.41Dividend Payout Ratio0.69Return on Sales0.12Current Ratio1.75Question 6CorrectMark 10.00 out of 10.00Flag questionQuestion textA business purchased merchandise for $15,000 on account; terms are 2/10, n/30.If $2,600 of the merchandise was returned and the remaining amount due was paid within the discount period, the purchase discount would be:

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