anon_ch posted a question
1. Casey Company reported net income of $35,000; depreciation expenses of $20,000; an increase in accounts payable of $2,000; and an increase in current notes receivable of $3,000. Net cash flows from operating activities under the indirect method is A. $55,000. B. $56,000. C. $50,000. D. $54,000. 2. Patty's Baker has cost of goods sold for the years 2011, 2010, and 2009, respectively, of $28,600, $26,900, and $25,600. If 2009 is the base year, the trend percentage for 2011 is A. 111.72%. B. 11.72%. C. 5.08%. D. 105.08%. 3. Birch issued 200 shares of $12 par common stock in exchange for a piece of equipment with a current market value of $3,000. Which of the following is not part of the journal entry for this transaction? A. Debiting Equipment for $3,000 B. Crediting Common Stock for $2,400 C. Crediting Common Stock for $3,000 D. Crediting Paid-in Capital in Excess of Par—Common for $600 4. What is the rate of return on common stockholders' equity if sales are $100,000, net income is $22,700, and average common stockholders' equity is $86,000? A. 26.4% B. 86.0% C. The rate of return can't be determined from the information given. D. 22.7% 5. Rick Company's net sales decreased from $90,000 in year 1 to $45,000 in year 2, and its cost of goods sold decreased from $30,000 in year 1 to $20,000 in year 2. Vertical analysis based on sales would show which decreases in cost of goods sold for the two periods (rounded to the nearest tenth of a percent)? A. 33.3% and 44.4% B. 44.4% and 33.3% C. 300% and 225% D. 225% and 300% 6. ryan industries has an idustry turnover of 112 days an accounts payable turnover of 73 days and an accounts receivable turnover of 82 days. Ryan's cash conversion cycle is : A. 9 days B. 103 days C. 43 days D. 121 days