BSG Quiz 2 - Question 1 of 20 next End Review Given the...

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Question 1 of 20 Given the following Year 12 Financial Statement data for a footwear company: Income Statement Data Year 12 (in 000s) Net Revenues from Footwear Sales $ 300,000 Operating Proft (Loss) 70,000 Net Proft (Loss) $ 42,000 Balance Sheet Data Cash on Hand 10,000 Total Current Assets $ 70,000 Total Assets 270,000 Overdraft Loan Payable 5,000 1-Year Bank Loan Payable 10,000 Current Portion of Long-term Loans 17,000 Total Current Liabilities 48,000 Long-Term Bank Loans Outstanding 90,000 Shareholder Equity: Year 11 Balance Year 12 Change Common Stock 10,000 0 10,000 Additional Capital 120,000 0 120,000 Retained Earnings 30,000 15,000 45,000 Total Shareholder Equity 160,000 +15,000 175,000 Based on the above fgures and the Formula For calculating return on average equity Found on p. 30 of the Player’s Guide, the company’s Return on Average Equity (the defnition oF ROE used in scoring company perFormance) in Year 12 was 40.0%. 25.1%.
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28.6%. 24.0%. None of these.
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Question 2 of 20 The accounts payable entry on the company's balance sheet represents the amounts due to production workers for incentives earned in the last quarter of the year which are not paid until the frst quarter oF the upcoming year. 25% of the year's materials costs incurred in making branded and private-label Footwear that are owed to suppliers and that will be paid For in the frst quarter oF the upcoming year (payments for materials delivered by suppliers are not due and payable for 90 days following delivery). the amounts due For interest on loans outstanding that becomes due in the frst quarter of the upcoming year. the amounts due shareholders for dividends declared the prior-year and payable in the current year and the amounts due For income taxes on prior-year profts. the amount that the company has set aside to put into its retained earnings account.
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Question 3 of 20 Assume a company has 10 million shares of stock outstanding and that its Income Statement for Year 12 is as follows: Income Statement Data Year 12 (in 000s) Net Revenues from Footwear Sales $ 330,000 Cost of Pairs Sold 240,000 Warehouse Expenses 15,000 Marketing Expenses 35,000 Administrative Expenses 8,000 Operating Proft (Loss) 32,000 Interest Income (expenses) (10,000) Pre-tax Proft (Loss) 22,000 Income Taxes 6,600 Net Proft (Loss) $ 15,400 Based on the above income statement data, the company's operating proft margin and EPS are 9.70% and $1.54. 9.70% and $2.20. 6.67% and $1.54. 9.70% and $3.20. None of the above.
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Question 4 of 20 According to the cost allocation principles used in the company’s accounting systems (that are explained on the Help screen for the Marketing and Admin Report), if a company spends $3 million on advertising in a given geographic region, sells 600,000 branded pairs online in the region, and sells 2.4 million branded pairs to footwear retailers in the region, then 50% of the company's advertising expenditures would be allocated to Internet marketing and advertising costs per online pair sold would be $2.50.
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This note was uploaded on 10/03/2011 for the course AC 304 taught by Professor Little during the Spring '11 term at South Carolina.

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BSG Quiz 2 - Question 1 of 20 next End Review Given the...

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