Module4 mcq 2 accounts payable 254111 286257 accrued

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South-Western Federal Taxation 2020: Corporations, Partnerships, Estates and Trusts
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Chapter 7 / Exercise 16
South-Western Federal Taxation 2020: Corporations, Partnerships, Estates and Trusts
Raabe/Young/Nellen/Hoffman
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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
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South-Western Federal Taxation 2020: Corporations, Partnerships, Estates and Trusts
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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:

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