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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 $

  • 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%.

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