1)

Refer to the following selected financial information from McCormik, LLC. Compute the company's current ratio for Year 2.

	Year 2		Year 1
Cash	$	39,400		$	34,150
Short-term investments		109,000			69,500
Accounts receivable, net		95,000			89,000
Merchandise inventory		130,500			134,500
Prepaid expenses		14,000			11,600
Plant assets		397,500			347,500
Accounts payable		103,900			117,300
Net sales		720,500			685,500
Cost of goods sold		399,500			384,500

Multiple Choice

• 3.60.

• 2.68.

• 3.73.

• 2.48.

• 2.34.

  2) A corporation reports the following year-end balance sheet data. The company's debt-to-equity ratio equals:

  Cash	$	42,000		Current liabilities	$	77,000
  Accounts receivable		57,000		Long-term liabilities		28,000
  Inventory		62,000		Common stock		102,000
  Equipment		147,000		Retained earnings		101,000
  Total assets	$	308,000		Total liabilities and equity	$	308,000

  rev: 03_13_2018_QC_CS-121682

  Multiple Choice

• 2.09

• 0.34

• 1.29

• 0.52

• 0.66

  3) Carducci Corporation reported Net sales of $3.54 million and beginning Total assets of $0.96 million and ending Total assets of $1.36 million. The average Total asset amount is:

  Multiple Choice

• $1.16 million.

• $2.58 million.

• $0.35 million.

• $2.18 million.

• $0.27 million.

  4) A corporation reports the following year-end balance sheet data. The company's working capital equals:

  Cash	$	51,000		Current liabilities	$	86,000
  Accounts receivable		66,000		Long-term liabilities		46,000
  Inventory		71,000		Common stock		111,000
  Equipment		156,000		Retained earnings		101,000
  Total assets	$	344,000		Total liabilities and equity	$	344,000

  Multiple Choice

• $86,000

• $188,000

• $102,000

• $212,000

• $344,000

  5) Refer to the following selected financial information from McCormik, LLC. Compute the company's acid-test ratio for Year 2.

  	Year 2			Year 1
  Cash	$	37,600		$	32,350
  Short-term investments		91,000			60,500
  Accounts receivable, net		86,000			80,000
  Merchandise inventory		121,500			125,500
  Prepaid expenses		12,200			9,800
  Plant assets		388,500			338,500
  Accounts payable		112,900			108,300
  Net sales		711,500			676,500
  Cost of goods sold		390,500			375,500

  Multiple Choice

• 3.09.

• 1.90.

• 2.98.

• 2.01.

• 2.28.

  6) A corporation reported cash of $15,300 and total assets of $179,600 on its balance sheet. Its common-size percent for cash equals:

  Multiple Choice

• 6.52%.

• 8.52%.

• 13.90%.

• 11.74%.

• 20.42%.

  7)Martinez Corporation reported Net sales of $770,000 and Net income of $137,000. The Profit margin is:

  Multiple Choice

• 562.0%.

• 1.78%.

• 5.62%.

• 82.21%.

• 17.79%.

  8) A company reports basic earnings per share of $4.60, cash dividends per share of $1.80, and a market price per share of $65.30. The company's dividend yield equals:

  Multiple Choice

• 14.50%.

• 6.90%.

• 2.76%.

• 2.78%.

• 3.60%.

  9) Selected current year company information follows:

  Net income	$	17,753
  Net sales		730,855
  Total liabilities, beginning-year		101,932
  Total liabilities, end-of-year		121,201
  Total stockholders' equity, beginning-year		216,935
  Total stockholders' equity, end-of-year		148,851

  The return on total assets is (Do not round intermediate calculations.):

  Multiple Choice

• 2.48%.

• 2.71%.

• 2.29%.

• 2.43%.

• 6.03%.

  10) Refer to the following selected financial information from Shakley's Incorporated. Compute the company's profit margin for Year 2.

  	Year 2		Year 1
  Net sales		$ 480,000		$ 426,550
  Cost of goods sold		276,600		250,420
  Interest expense		10,000		11,000
  Net income before tax		67,550		52,980
  Net income after tax		46,350		40,200
  Total assets		317,700		289,800
  Total liabilities		179,900		167,600
  Total equity		137,800		122,200

  Multiple Choice

• 16.8%.

• 9.7%.

• 14.1%.

• 11.7%.

• 33.6%.