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Shown below are the financial statements for the Alpha Corporation Alpha Corporation Income Statement for the year ended December 31, 20X2 and 20X1



Shown below are the financial statements for the Alpha Corporation


Alpha Corporation 

Income Statement 

for the year ended December 31, 20X2 and 20X1

(amounts in thousands)

20X2 20X1

Net Sales $130,000 $117,000

Cost of Goods Sold    64,000    56,000

Gross Profit   66,000    61,000

Operating Expenses    35,000    38,800

Operating Income   31,000    22,200

Interest Expense     8,000    7,200

Income Before Income Tax    23,000  15,000

Income Tax     8,050     4,950

Net Income   $14,950  $10,050

Alpha Corporation 

Balance Sheet

 December 31, 20X2 and 20X1

Assets 20X2 20X1

Cash $ 8,500 $ 7,000

Accounts Receivable   7,100   6,400

Inventory   10,600   10,000

Plant Assets   39,000   34,000

Less: Accumulated Depreciation    (6,000)    (5,000)

Total Assets $59,200 $52,400

Liabilities & Stockholders' Equity

Accounts Payable $ 7,900 $ 6,000

Notes Payable - short term    4,400    4,000

Bonds Payable   18,000   15,000

Common Stock    9,600    9,300

Retained Earnings   19,300   18,100

Total Liabilities & Stockholders' Equity $59,200 $52,400




5.        Refer to Alpha Corporation. What is the working capital for 20X2 and 20X1, respectively?

           A.  $13,900 and $13,400

           B. $34,900 and $32,400

           C. $7,700 and $7,400

           D. $7,800 and $6,400


6.        Refer to Alpha Corporation. What is the inventory turnover for 20X2?

           A. 12.62

           B. 6.21

           C. 6.41

           D. 6.04


7.        Refer to Alpha Corporation. The percentage change in Notes Payable is:

           A.  9.09%

           B.  9.52%

           C. 10.0%

           D. 4.0%



8.       Refer to Alpha Corporation. The common-size percentage of retained earnings in 20X1 is:         

           A. 32.6%

           B.  16.7%

           C. 92.5%

           D. 34.5%


9.        Refer to Alpha Corporation. The debt ratio in 20X1 is:

           A.  51.2%

           B. 47.7%

           C. 40.1%

           D. 19.1%


10.      Refer to Alpha Corporation. What is the ROA for 20X2?

           A. 26.8%

           B. 52.4%

           C.  55.6%

           D. 25.3%

Top Answer

The correct answers are: (a) $13,900... View the full answer

1 comment
  • Thank you very much!
    • hdlpac2013
    • May 17, 2018 at 10:04pm

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Other Answers

Dear Student, Please find below the answers, along with Explanation. Please do let me know if you... View the full answer

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