Alpha Company constructed new corporate headquarters in 2017 and capitalized significant interest costs incurred during the construction period. Compared to expensing the interest costs, capitalizing would cause: 16. a) An increase in the 2017 net profit margin ratio. b) A decrease in the 2017 total asset turnover ratio. c) A decrease in the current ratio as at the end of 2017. d) a and b. e) a, b and c. h of the following inventory costing methods provides the best possible matching of revenues and expenses? a) Specific identification b) c) d) e) FIFO Percentage-of-completion Weighted-average cost None of the above matches revenues and expenses better than any of the others. 18. The management of Anton Ltd has decided to change its depreciation policy for ment from straight-line to the declining-balance method. The change in policy will increase 2017 depreciation expense by $12,000 (compared to what it would have been under straight-line depreciation). What will be the effect of the change in depreciation method on the 2017 cash flow statement (assume Anton uses the indirect method for preparing the cash flow statement)? a) Cash from operating activities will increase by $12,000. b) Cash from operating activities will decrease by $12,000. c) Cash position at the end of the year will be unaffected by the change in policy d) Both a) and c). e) Both b) and c). Tarrant Inc. owns 60% of Rockwell Corporation, and Rockwell owns 60% of Kaufman. During 2017, these companies' net incomes are as follows before any consolidations 19, Tarrant, $200,000 Rockwell, $135,000 .Kaufman, $50,000 What is the total net income that is attributable to shareholders of Tarrant for 2017? a) $200,000 b) $281,000 c) $299,000 d) e) $365,000 None of the above 0. Hernandez Company had a gross profit of $240,000, total purchases of $280,000, and an ending inventory of S160,000 in its first year of operations as a retailer. Hernandez's sales in its first year must have been a) $360,000. b) $440,000 c) $120,000. d) $400,000. e) None of the above