question - Lake Coffee Company reported net sales of...

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Lake Coffee Company reported net sales of $180,000, net income of $54,000, beginning total assets of $200,000, and ending total assets of $300,000. What was the company's asset turnover ratio? (a) 0.90 (b) 0.20 (c) 0.72 (d) 1.39 Answer: (c) 0.72 Pierce Company incurred $150,000 of research and development costs in its laboratory to develop a new product. It spent $20,000 in legal fees for a patent granted on January 2, 2010. On July 31, 2010, Pierce paid $15,000 for legal fees in a successful defense of the patent. What is the total amount that should be debited to Patents through July 31, 2010? (a) $150,000. (b) $35,000. (c) $185,000. (d) Some other amount. Answer: (b) $35,000. Indicate which one of these statements is true . (a) Since intangible assets lack physical substance, they need to be disclosed only in the notes to the financial statements. (b) Goodwill should be reported as a contra account in the stockholders' equity section.
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question - Lake Coffee Company reported net sales of...

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