11]

A company owns 9% bonds with a par value of $186,000 that pay interest on October 1 and April 1.The amount of interest accrued on December 31 (the company's year-end) would be (Do not round your intermediate calculations):

A $16,740.

B $1,395.

C $8,370.

D $2,790.

E $4,185.

12]

Adidas issued 10-year, 11% bonds with a par value of $110,000. Interest is paid semiannually. The market rate on the issue date was 10%. Adidas received $116,855 in cash proceeds. Which of the following statements is True?

A Adidas must pay $110,000 at maturity plus 20 interest payments of $6,050 each.

B Adidas must pay $116,855 at maturity and no interest payments.

C Adidas must pay $110,000 at maturity plus 20 interest payments of $5,500 each.

D Adidas must pay $116,855 at maturity plus 20 interest payments of $6,050 each.

E Adidas must pay $110,000 at maturity and no interest payments.

13]

Refer to the following selected financial information from Hansen's, LLC. Compute the company's return on total assets for Year 2.

	Year 2	Year 1
Net sales	$ 483,500	$ 427,250
Cost of goods sold	277,300	251,120
Interest expense	10,700	11,700
Net income before tax	68,250	53,680
Net income after tax	47,050	40,900
Total assets	319,100	294,000
Total liabilities	176,400	168,300
Total equity	142,700	125,700

A 2.7%.

B 9.7%.

C 14.7%.

D15.4%.

E 22.3%

14]

A corporation borrowed $135,000 cash by signing a 5-year, 9% installment note requiring equal annual payments each December 31 of $34,707. What journal entry would the issuer record for the first payment?

A Debit Notes Payable $34,707; debit Interest Payable $12,150; credit Cash $46,857.

B Debit Interest Expense $12,150; debit Notes Payable $22,557; credit Cash $34,707.

C Debit Interest Expense $7,707; debit Notes Payable $27,000; credit Cash $34,707.

D Debit Notes Payable $34,707; credit Cash $34,707.

E Debit Notes Payable $12,150; credit Cash $12,150.

15]

Selected current year company information follows:

Net income	$ 16,353
Net sales	716,855
Total liabilities, beginning-year	87,932
Total liabilities, end-of-year	107,201
Total stockholders' equity, beginning-year	202,935
Total stockholders' equity, end-of-year	127,851

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

A 6.22%.

B 2.46%.

C 2.28%.

D 3.05%.

E 2.73%.

16]

A company's income statement showed the following: net income, $140,000; depreciation expense, $38,000; and gain on sale of plant assets, $22,000. An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $11,000; merchandise inventory increased $26,000; prepaid expenses decreased $7,800; accounts payable increased $5,000. Calculate the net cash provided or used by operating activities.

A $151,800.

B $158,600.

C $179,800.

D $153,800.

E $175,800.

17]

Refer to the following selected financial information from Hansen's, LLC. Compute the company's debt-to-equity ratio for Year 2.

	Year 2	Year 1
Net sales	$ 480,500	$ 426,650
Cost of goods sold	276,700	250,520
Interest expense	10,100	11,100
Net income before tax	67,650	53,080
Net income after tax	46,450	40,300
Total assets	317,900	290,400
Total liabilities	179,400	167,700
Total equity	138,500	122,700

A 0.77.

B 3.47.

C 1.30.

D 2.30.

E 1.77.

18]

Seamark buys $380,000 of Eider's 6% five-year bonds payable at par value on September 1. Interest payments are made semiannually on March 1 and September 1. The journal entry to accrue interest earned at year-end December 31 is (Do not round your intermediate calculations):

A Debit Interest Revenue $7,600, credit Interest Receivable $7,600.

B Debit Cash $11,400, credit Interest Revenue $11,400.

C Debit Interest Receivable $7,600, credit Interest Revenue $7,600.

D Debit Cash $7,600, credit Interest Revenue $7,600.

E Debit Interest Receivable $11,400, credit Interest Revenue $11,400.

19]

Refer to the following selected financial information from Fennie's, LLC. Compute the company's days' sales in inventory for Year 2. (Use 365 days a year.)

	Year 2	Year 1
Cash	$ 38,100	$ 32,850
Short-term investments	96,000	63,000
Accounts receivable, net	88,500	82,500
Merchandise inventory	124,000	128,000
Prepaid expenses	12,700	10,300
Plant assets	391,000	341,000
Accounts payable	110,400	110,800
Net sales	714,000	679,000
Cost of goods sold	393,000	378,000

A 82.2 days.

B 115.2 days.

C 45.2 days.

D 49.1 days.

E 43.6 days.

20]

On January 1 of Year 1, Drum Line Airways issued $4,130,000 of par value bonds for $3,488,000. The bonds pay interest semiannually on January 1 and July 1. The contract rate of interest is 7% while the market rate of interest for similar bonds is 8%. The bond premium or discount is being amortized using the straight-line method at a rate of $46,000 every 6 months. The life of these bonds is:

A 8 years

B 14 years.

C 9 years.

D 5 years.

E 7.0 years