1-

Z Co. has total assets of $150,000, total stockholders equity of $80,000, total annual revenues of $460,000, cost of goods sold of $290,000, and inventory of $30,000.

In preparing common-sized statements for the year, which of the following percentages would represent total liabilities?

Question 4 options:

a. 15%

b. 30%

c. 47%

d. 88%

e. Cannot be computed from the informatin given

2-

The following asset and liability accounts are shown on Mason Stores December 31, 2010, balance sheet:

Accounts Receivable $ 80,000

Current Portion of Long-Term Debt 30,000

Cash 35,000

Accounts Payable 6,000

Allowance for Uncollectible Accounts 3,000

Equipment 28,000

Accumulated Depreciation Equipment 6,000

Intangible Assets 20,000

Unearned Rent 10,000

Inventory 19,000

Bonds Payable (Long-Term) 20,000

What is Masons current ratio at December 31, 2010?

Question 5 options:

	a. 2.65
	b. 2.85
	c. 2.91
	d. 3.64
	e. 7.63