Benson company shows the following data on its 2014

This preview shows page 12 - 16 out of 21 pages.

We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Survey of Accounting
The document you are viewing contains questions related to this textbook.
Chapter 2 / Exercise E2-11
Survey of Accounting
Warren
Expert Verified
27.Benson Company shows the following data on its 2014 financial statements:Accounts receivable, January 1 $720,000; Accounts receivable, December 31 960,000; Merchandise inventory, January 1 900,000; Merchandise inventory, December 31 1,020,000; Gross sales 4,800,000;Sales returns and allowances 180,000; Net sales 4,620,000;Cost of goods sold 3,360,000;Income before interest and taxes 720,000; Interest on bonds 192,000; Net income 384,000;
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Survey of Accounting
The document you are viewing contains questions related to this textbook.
Chapter 2 / Exercise E2-11
Survey of Accounting
Warren
Expert Verified
28.The following information applies to Benson Company for 2014:Stock market price, December 31,2014: $50Common Shares Outstanding, December 31, 2014: 100,000Net income for year 2014: $400,000Retained Earnings January 1, 2014: $100,000On December 31,2014, Benson decides to pay the maximum amount it can in dividends to its shareholders. What is the dividend yield ratio?
29.The working capital of a company is equal to: current assets less current liabilities30.The gross profit percentage decreased from 36.5% in 2014 to 24.8% in 2015. What is the trend in this change? This change represents a downward, or negative trend.31.ABC Inc. was incorporated two years ago by issuing 1,000 shares of common stock at $200 and borrowing $30,000 from a bank on a long-term note. Last year, ABC reported net income of $10,000 and paid a cash dividend of $800. During the year, the company also borrowed an additional $7,600 from the bank. What was total assets on ABC's balancesheet at the end of the year last year? $246,800
32.Based on the information below and considering that this company paid $322,500 in cash to its suppliers during the year, what is the company's cost of goods sold for 2015?
33.FFS Clothing Store sells socks. During January 2014, its inventory records for one particular brand of socks were as follows:QualityPrice Per PairTotalBeginning Inventory6 pairs$18$108January 6 Purchase3 pairs$16$48January 10 Sale5 pairsn/aJanuary 15 Purchase8 pairs$15$120January 20 Sale10 pairsn/aJanuary 25 Purchase4 pairs$22$88See Information for FFS clothing store above. Using this information, perpetual FIFO cost of goods sold is

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture