The correct answer is: $378Question 14IncorrectMark 0.00 out of 10.00Flag questionQuestion textIf at the end of 2016, ending inventory is overstated, theSelect one:a. 2016 cost of goods sold is overstated. b. 2017 income will be overstated. c. 2016 net income is overstated. d. 2016 total assets are understated. FeedbackYour answer is incorrect.The correct answer is: 2016 net income is overstated.Question 15

Partially correctMark 4.00 out of 10.00Flag questionQuestion textBelow is selected financial information for Panettone, Inc.In the answer boxes below, select the right answer from the drop-down menu. Each answer is worth 2 points. Answers are rounded to two decimals.RatioAnswer Working CapitalAnswerReturn on AssetsAnswer

Return on EquityAnswerDebt-to-Equity RatioAnswerDividend YieldAnswerFeedbackRatioCorrect Answer Working Capital$600Return on Assets0.33Return on Equity0.73Debt-to-Equity Ratio1.25Dividend Yield0.11Question 16IncorrectMark 0.00 out of 10.00

Flag questionQuestion textIf ending inventory on the last day of the year is overstated by $14,000, what is the effect on net income for the current year?Select one:a. Net income is understated by $14,000. b. The answer cannot be determined from the information given. c. Net income is overstated by $14,000. d. Net income is overstated by $28,000. FeedbackYour answer is incorrect.The correct answer is: Net income is overstated by $14,000.Question 17CorrectMark 10.00 out of 10.00Flag questionQuestion textFFS Clothing Store sells socks. During January 2014, its inventory records for one particular brand of socks were as follows:Quantity Price per pairBeginning Inventory6 pairs$18 = $108

Quantity Price per pairJanuary 6 Purchase3 pairs$16= $48January 10 Sale5 pairsN/AJanuary 15 Purchase8 pairs$15= $120January 20 Sale10 pairsN/AJanuary 25 Purchase 4 pairs$22= $88See information for FFS Clothing Store above. Using this information, perpetual FIFO cost of goods sold isSelect one:a. $242 b. $246 c. $240 d. $171 FeedbackYour answer is correct.The correct answer is: $246Question 18IncorrectMark 0.00 out of 10.00Flag questionQuestion textOn December 31, 2015, Company A reports total assets of $4,500,000 and total equity of $2,345,000. All liabilities are current (the company has no long-term debt). The company has a current ratio of 0.7. How much are current assets?Select one:a. $3,078,571

b. -$646,500 c. $1,641,500 d. $1,508,500 FeedbackYour answer is incorrect.The correct answer is: $1,508,500Question 19IncorrectMark 0.00 out of 10.00Flag questionQuestion text

Below is selected financial information for Panettone, Inc.In the answer boxes below, select the right answer from the drop-down menu. Each answer is worth 2 points. Answers are rounded to two decimals.RatioAnswer Gross Profit RatioAnswerPrice-Earnings RatioAnswerInventory TurnoverAnswer

Quick RatioAnswerAccounts Receivable TurnoverAnswerFeedbackRatioCorrect Answer Gross Profit Ratio39.29%Price-Earnings Ratio3.20Inventory Turnover2.83Quick Ratio1.00Accounts Receivable Turnover7.00Question 20CorrectMark 10.00 out of 10.00Flag questionQuestion textIf a company collects a $3,500 account receivable, what is the impact of this activity on the current ratio and the working capital, respectively?