16. These are selected account balances on December 31, 2017 Land Land (held for future use) Buildings Inventory Equipment Furniture Accumulated Depreciation $150,000 225.000 1,200,000 300,000 675,000 150,000 450,000 What is the total amount of property, plant, and equipment that will appear on the balance sheet? a $2,250,000 b. $1,950,000 c. $2,700,000 d. $1,725,000 17. Ratios that measure the income or operating success of a company for a given period of time are a. liquidity ratios. b. profitability ratios C. solvency ratios d. trending ratios. 18. Use the following data to determine the total dollar amount of assets to be classified as current assets. Koonce Office Supplies Balance Sheet December 31, 2017 Cash $ 195,000 Accounts payable $ 210,000 Accounts receivable 150,000 Salaries and wages payable 30,000 Inventory 165,000 Mortgage payable 240,000 Prepaid insurance 90,000 Total liabilities $480,000 Stock investments 255,000 Land 270,000 Buildings $315,000 Common stock $360,000 Less: Accumulated Retained earnings 750,000 depreciation (60.000) 255,000 Total stockholders' equity $1.110,000 Trademarks 210,000 Total liabilities and Total assets $1.590.000 stockholders' equity $1.590.000 a. $855,000 b. $600,000 C. $510,000 d. $435,000 19. Use the following data to determine the total dollar amount of assets to be classified as property, plant, and equipment. Koonce Office Supplies Balance Sheet December 31, 2017 Cash $ 195,000 Accounts payable $ 210,000 Accounts receivable 150,000 Salaries and wages payable 30,000 Inventory 165,000 Mortgage payable 240.000 Prepaid insurance 90,000 Total liabilities 480,000 Stock investments 255,000 Land 270,000 Buildings $315,000 Common stock 360,000 Less: Accumulated Retained earnings 750.000 depreciation (60.000) 255,000 Total stockholders' equity $1.110.000 Trademarks 210,000 Total liabilities and Total assets $1.590.000 stockholders' equity $1.590.000 a. $990,000 b. $525,000 c. $735,000 d. $585,000 20. Use the following data to determine the total dollar amount of assets to be classified as current assots. Carne Auto Supplies Balance Sheet December 31, 2017 Cash $ 70,000 Accounts payable $ 130,000 Accounts receivable 100,000 Salaries and wages payable 20,000 Inventory 140,000 Mortgage payable 180.000 Prepaid insurance 80,000 Total liabilities $330,000 Stock Investments 180,000 Land 190,000 Buildings $230,000 Common stock $240,000 Less: Accumulated Retained earnings 500,000 depreciation (60.000) 170,000 Total stockholders' equity $740,000 Trademarks 140,000 Total liabilities and Total assets $1.070,000 stockholders' equity $1.070,000 a. $390,000 b. $250,000 C. $570,000 d. $330,000 Came Auto Supplies Balance Sheet December 31, 2017 Cash $ 70,000 Accounts payable Accounts receivable 100,000 Salaries and wages payable Inventory 140,000 Mortgage payable Prepaid insurance 80,000 Total liabilities Stock investments 180,000 Land 190,000 Buildings $230,000 Common stock Less: Accumulated Retained earnings depreciation (60,000) 170,000 Total stockholders' equity Trademarks 140,000 Total liabilities and Total assets $1.070.000 stockholders' equity $ 130,000 20,000 180.000 $330,000 $240,000 500.000 $740.000 $1.070.000 a. 2.07 : 1 b. 1.67:1 C. 3.00 : 1 d. 2.60 : 1 22. A measure of profitability is the a. current ratio. b. debt to assets ratio. c. earnings per share. d. working capital. 23. For 2017 Kuhlman Corporation reported net income of $36.000: net sales $400,000: and average share outstanding 16,000. There were no preferred dividends. What was the 2017 earnings per share? a. $2.25 b. $0.44 c. $25.00 d. $0.09 24. Working capital is a measure of a. consistency. b. liquidity. c. profitability. d. solvency. 25. Long-term creditors are usually most interested in evaluating a. liquidity and profitability. b. consistency and profitability. C. liquidity and solvency. d. consistency and solvency. 90 26. A liquidity ratio measures the a. income or operating success of a company over a period of time. b. ability of a company to survive over a long period of time. c. short-term ability of a company to pay its maturing obligations and to meet unexpected needs for cash d. percentage of total financing provided by creditors. 27. Working capital is a. calculated by dividing current assets by current liabilities. b. used to evaluate a company's liquidity and short-term debt paying ability. c. used to evaluate a company's solvency and long-term debt paying ability d. calculated by subtracting current assets from current liabilities. 28. The ability of a business to pay obligations that are expected to become due within the next year or operating cycle is a leverage b. liquidity. c. profitability. d. wealth 29. Based on the following data, what is the amount of current assets? Accounts payable... $62,000 Accounts receivable...... 100,000 Cash....... 70.000 Intangible assets... . 100,000 Inventory..................... 138,000 Long-term investments.. 160.000 Long-term liabilities......... 200,000 Short-term investments.... 80,000 Notes payable... 56,000 Property, plant, and equipment.... 1,340,000 Prepaid insurance..... 2,000 a. $232,000 b. $390,000 c. $252,000 d. $250,000 30. Using the following balance sheet and income statement data, what is the total amount of working capital? Current assets $ 32,000 Net income $ 42,000 Current liabilities 16,000 Stockholders' equity 78,000 Average assets 160,000 Total liabilities 42,000 Total assets 120,000 Average common shares outstanding was 15,000. a. $ 8,000 b. $ 32,000 C. $ 10,000 d. $ 16,000 31. Using the following balance sheet and income statement data, what is the debt to assets ratio? Current assets $ 32,000 Net income $ 42,000 Current liabilities 16,000 Stockholders' equity 78,000 Average assets 160,000 Total liabilities 42,000 Total assets 120,000 Average common shares outstanding was 15,000. a. 26 percent b. 13 percent c. 65 percent d. 35 percent 32. What organization issues U.S. accounting standards? a. Security Exchange Commission b. International Accounting Standards Committee c. International Auditing Standards Committee d. Financial Accounting Standards Board 33. The TNT Company has five plants nationwide that cost $300 million. The current fair value of the plants is $500 million. The plants will be reported as assets at a. $200 million b. $800 million. C. $300 million d. $500 million