# Module4 mcq 2 accounts payable 254111 286257 accrued

• Test Prep
• 6
• 99% (154) 152 out of 154 people found this document helpful

This preview shows page 2 - 4 out of 6 pages.

##### We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
The document you are viewing contains questions related to this textbook.
Chapter 7 / Exercise 16
South-Western Federal Taxation 2020: Corporations, Partnerships, Estates and Trusts
Raabe/Young/Nellen/Hoffman
Expert Verified
Module4 MCQ 2 Accounts payable 254,111 286,257 Accrued liabilities 273,658 166,983 Income taxes payable 97,735 178,911 Total Current Liabilities 1,086,880 970,570 Long-term debt 500,000 300,000 Deferred income taxes 215,017 262,404 Total Liabilities 1,801,897 \$1,532,974 Common stock \$ 425,250 \$ 125,000 Additional paid-in capital 356,450 344,335 Retained earnings 932,874 331,037 Total Stockholders' Equity 1,714,574 800,372 Total Liabilities and Stockholders' Equity \$3,516,471 \$2,333,346 Selected Income Statement Data for the year ending December 31, 2017: Net sales \$4,885,340 Cost of goods sold (2,942,353) Selling expenses (884,685) Operating income 1,058,302 Interest expense (55,240) Earnings before income taxes 1,003,062 Income tax expense (401,225) Net income \$ 601,837 Selected Statement of Cash Flow Data for the year ending December 31, 2017: Cash flows from operations \$1,456,084 Capital expenditures \$745,862 4. Wilmington Corporation’s current ratio in 2017 was:A) 0.92 B) 1.44 C) 0.69 D) 2.02 Answer:B Rationale:\$1,564,251 / \$1,086,880 = 1.44 5. Wilmington Corporation’s quick ratio in 2017 was:A) 0.92 B) 0.81
##### We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
The document you are viewing contains questions related to this textbook.
Chapter 7 / Exercise 16
South-Western Federal Taxation 2020: Corporations, Partnerships, Estates and Trusts
Raabe/Young/Nellen/Hoffman
Expert Verified
Module4 MCQ 3 C) 1.09 D) 1.44 Answer:A Rationale:(\$576,843 + \$166,106 + \$258,387) / \$1,086,880 =0.92 6. Wilmington Corporation’s quick ratio changed by what percentage from 2016 to 2017? A) + 15.0% B) + 87.0% C) + 9.1% D) 8.5% Answer:A Rationale: 2016 quick ratio = (\$305,088 + \$187,064 + \$289,100) / \$970,570 = 0.80 2017 quick ratio = (\$576,843 + \$166,106 + \$258,387) / \$1,086,880 = 0.92 Change in ratio = (0.92 0.80) / 0.80 = 0.15 = +15.0% 7.Wilmington Corporation’s liabilities to equity ratio in 2017 was:A) 0.99 B) 1.09 C) 1.05 D) 1.79 Answer:C Rationale:\$1,801,897 / \$1,714,574 = 1.05 8.Wilmington Corporation’s total debt to equity ratio in 2017 was:A) 1.31 B) 0.38 C) 0.56 D) 0.29 Answer:C Rationale: