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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...

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

This question was asked on Aug 09, 2012.

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