ALL OF THEM

Adrian Inc. sells computer monitors with a one-vear wamnty, Warranty costs are expected. to average 6% of sales. Sales for 2018 (the first year of operations for Adrian) were $1,400,000 and warranty liability was 28,000 as at December 31, 2018. What was the amount of warmanty payments (claims) made during 20187 QUESTION SIX Continued 21. $28,000 S56,000 a) b) $84.000. S112,000, di Levy Lad's financial statement ratios show that its accounts receivable turnover increased in 2018, relative to 2017, From this information, the reader can conclude that: 22. Levy has become more profitable in 2018, On average, Levy's customers are paying more quickly in 2018. Levy's accounts receivable have declined during 2018. b and c. al c) dT The bookkeeper of Harnett Ltd has just written off as uncoliectible an account receivable worth $2,000, If Harnett uses the allowance method, what is the effect of this write-offh 23. Decrease Harnett's current ratio and quick ratio. Increase Harnett's asset turnover ratio. Decrease Harnett's earnings per share. Have no effect on Harnett's financial ratios. al h) cl Hale Ltd renews its annual insurance policy every year on April 1. Hale paid insurance premiums of S2,400 in 2017, and $3,200 in 2018. What should be the insurance expense for the fiscal year ending December 31, 2018? 24. $2,400. $2,800. S3,000. $3,800. a: bl c) d' If ending inventory for the year ended December 31, 2017, is understated, under a periodic inventory system, what would be the effect of this eror on owners' equity? 25. Overstated at the end of 2017 and understated at the end of 2018. Understated at the end of 2017 and overstated at the end of 2018 Corectly stated at the end of 2017 and overstated at the end of 2018. Understated at the end of 2017 and correctly stated at the end of 2018. a) b cl d) On January 1, 2018, Bernard Ltd has declared a 3-for-1 stock split. What effect will this event have on the 2018 financial ratios? 26. Increase the company's dividend yield. Decrease the company's earnings per share. Increase the company's asset turnover ratio. a and b a) b) c) d)