The Michael Jackson Design Technique:
A study of the theory with applications
C.A.R.Hoare
edited and introduced by Daniel Jackson
Abstract
This paper reproduces a report written by Hoare in 1977, in which he explains the fundamental ideas of Jacksons prog
1. Know how to identify population, parameters, and the statistics that estimate the
parameters
*Always say all when writing the population (who are we studying?)
a. Parameters (what about that population we specifically want to learn about):
i. One sampl
Final for Bus 215 Manaperial Accountine  McDowell
Guide Only  All Chapters Content subject to Exam
This is only a puide to help in preparing for the exam. It is not meant as a complete summary of questions on
the exam. The student is expected to know an
Midterm #1 for Bus 215 Manaperial Accounting  McDowell

Guide Only All Chapters Content subject to Exam
Chapters 1,2,3,5
This is only a guide to help in preparing for the exam. It is not meant as a complete summary of questions on
the exam. The student
31. If a company has a current ratio of 1.3:1, what respective effects will the borrowing of cash by
shortterm debt and collection of trade receivables have on the ratio?
A.
B.
C.
D.
32. If trade receivables are collected quickly, it may indicate which o
65.
In 2012, C Co's total liabilities were $10,742 million and shareholders' equity was $8,403
million. In 2012, P Co's total liabilities were $16,259 million and their shareholders' equity was
$6,401 million. Which of the following statements is false?
A
12.
Financial leverage will always be which of the following?
A. Positive.
B. Negative.
C. Either positive or negative.
D. Positive, negative, or zero.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Easy
Learning Objective: 1304 Comput
26.
Box Company reported the following data at the end of 20B:
What was the average number of days to collect receivables during 20B?
A. 14.3
B. 16.2
C. 21.9
D. 36.5
Calculation: 365 ($225,000 $10,000) = 16.2
Blooms: Apply
Difficulty: Medium
Learning Obje
111.
The following data were available for Lorie Company:
Sales revenue, $225,000 (including 75,000 cash sales)
Cost of goods sold, $175,000
Average inventory (per month), $20,000
Average monthly balance in trade receivables, $20,000
Assume a business yea
Blooms: Apply
Difficulty: Medium
Learning Objective: 1203 Describe the characteristics of common shares; and analyze transactions affecting common shares.
Learning Objective: 1204 Discuss dividends; and analyze related transactions.
Learning Objective:
5. Net sales are $2,700,000, beginning total assets are $750,000, and the asset turnover is 3.0.
What is the ending total asset balance?
A. $900,000.
B. $1,050,000.
C. $600,000.
D. $1,125,000.
6. Which of the following ratios usually is not considered to
Blooms: Apply
Difficulty: Easy
Learning Objective: 1204 Discuss dividends; and analyze related transactions.
Libby  Chapter 12 #130
131.
At the end of 20C, Bush Corporation reported a $40,000 balance in its common share account
(stated value $5 per shar
57. Calculate P Co's book value per share in 2012 and 2011 respectively.
A. 4.14 and cannot compute 2012's book value
B. 4.14 and 4.49
C. 4.21 and 4.42
D. 4.21 and cannot compute 2012's book value
58. All of the following ratios are investor measures of p
78.
The quality of earnings computation is a test of the solvency of the company.
FALSE
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Easy
Learning Objective: 1306 Compute and interpret solvency ratios.
Libby  Chapter 13 #78
79.
The
Difficulty: Medium
Learning Objective: 1306 Compute and interpret solvency ratios.
Libby  Chapter 13 #34
35.
A quality of earnings ratio higher than one is an indicator of which of the following?
A. A company's high debt position.
B. That fixed assets a
(1) A, (2) B, (3) C, (4) D, (5) B, (6) A, (7) D, (8) C, (9) A, (10) B, (11) C, (12) B, (13) A, (14) A,
(15) E, (16) A, (17) A, (18) C, (19) B, (20) C
Blooms: Analyze
Difficulty: Medium
Learning Objective: 1304 Compute and interpret profitability ratios.
3.
The ratio that is calculated by dividing cash dividends declared on common shares by net
earnings is called the:
A. dividend yield ratio.
B. earnings per share ratio.
C. common dividend ratio.
D. payout ratio.
Accessibility: Keyboard Navigation
Blooms:
42. Calculate C Co's current ratio for 2012 and 2011 respectively.
A. .54 and .59
B. .60 and .70
C. .66 and .74
D. .63 and .72
43. Calculate C Co's quick ratio for 2012 and 2011 respectively.
A. .30 and .32
B. .37 and .40
C. .55 and .64
D. .56 and .54
44.
72. Liquidity ratios measure the ability of the company to survive over a long period of time.
True
False
73. To compute component percentages for the statement of earnings, the base amount is profit.
True
False
74. In simple terms, a business strategy es
124.Ricon Company had the following data available from the statements of financial position and
income statements:
125.Indicate the effect of each item on the ratios given below in the following manner: if an item would
cause an increase in the ratio, pl
121.
The following return on investment ratios were computed for ET Company:
(a) Financial leverage percent for each year was:
(b) Explain briefly the stockholders' advantage or disadvantage each year:
20A:
20B:
20C:
20D:
(a) 20A: 15%  12% = +3% positive
135.
Contrast the economic effects of a cash dividend (declared and paid) with a share dividend
(declared and issued) on the distributing corporation by completing the following chart by
placing "X" where appropriate.
Blooms: Apply
Difficulty: Medium
Lear
94.
Solvency ratios are evaluated by comparing them over time for a single company or by
comparing them with ratios for similar companies.
TRUE
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Medium
Learning Objective: 1306 Compute and
109.Easy Company reported the following data at yearend:
110.The following data were shown in the records of Morgan Company at the end of 20B:
Compute the following ratios
(a) Quick ratio:
(b) Current (working capital) ratio:
(c) Receivable turnover:
(d)
113.Custer Corporation reported the following information related to its common share (par $10)
outstanding and profit:
114.At the end of 20C, Anderson Corporation reported a return on assets of 16%; net income of
$42,000; total assets of $365,000, and to
107.
The following financial data are available for Schultz Company:
Compute the following ratios:
1. Return on equity
3. Price/earnings ratio
3. Dividend yield
1. Return on equity 19.93% ($196,300/$985,000)
2. Price earnings ratio 10 ($24.50/$2.45)
3. Di
56.
Calculate P Co's dividend payout for 2012 and 2011 respectively.
A. 38.6% and 34.5%
B. 39.3% and 33.8%
C. 1.3% and 1.3%
D. 3.5% and 3.6%
Calculation: $.515 $1.31 = 39.3%; $.46 $1.36 = 33.8%
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty:
19.
Nunn Company reported the following data:
What was the current ratio?
A. 0.5 to 1
B. 0.75 to 1
C. 1.5 to 1
D. 2.5 to 1
Calculation: $150,000 ($300,000  $200,000) = 1.5 to 1
Blooms: Apply
Difficulty: Medium
Learning Objective: 1305 Compute and interp
101.Dividend yield measures earnings generated by each share, based on the market price per
share.
True
False
102.Indicate the proper category for each ratio.
Primary Category
Test of:
A. Profitability
B. Liquidity
C. Solvency
D. Market
E. Miscellaneous r