Can someone help me find an answer key to these test prep questions?

1. The following data came from the balance sheet of Han Company as of December 31, 20X2. Dec. 31, 20X2 Dec. 31, 20X1 Machine $3,500 $2,950 Accumulated depreciation on machines 1,400 1,300 Cash 135 180 The following additional data were found in Han Company's financial statements for 20X2. Sales $10,000 Cash dividends paid 65 New machine purchases (for cash) 1,000 Net income 300 Depreciation expense 270 gain on sale of old machines 140 How much cash did Han Company receive from the sale of old machines during the year? (Assume that all machine sales were cash transactions.) $210 $420 $490 $590 $360 2. On December 31, 20X1, Thomson Company had the following account balances: Accounts receivable $15,000 Sales revenues 845,000 Gain on sale of equipment 14,000 Retained earnings (beginning of year, January 1, 20X1) 120,000 Accounts payable 25,000 Loan payable 45,000 Cost of goods sold 650,000 Cash 65,000 Inventory 11,000 Common stock 41,000 Operating expenses 210,000 Dividends 34,000 Unearned revenue 55,000 Property, plant, and equipment 145,000 Prepaid rent 50,000 Bonds payable 35,000 Given these data, what is Thomson's DEBT-TO-EQUITY RATIO as of December 31, 20X1? 1.27 1.00 1.88 0.99 1.01 0.78 0.79 0.56 3. Derrald Company's financial statements show the following items. Sales $200,000 Wage expense 80,000 Accounts receivable increase 36,000 Loss on sale of equipment 13,000 Unearned rent income 22,000 Rent revenue 50,000 Dividends (declared and paid) 40,000 Wages payable increase 26,000 Depreciation expense 25,000 Derrald has no other revenues or expenses. What is Derrald's net cash flow from operating activities? $196,000 $182,000 $154,000 $231,000 $132,000 Use the following information in answering the following 4 questions. Below are balance sheet and income statement data for Howard Bannister Company. Note: For the balance sheet data, the end-ofyear information is in the left column. Balance Sheet Data 20X2 20X1 Accounts Payable 165 95 Accumulated Depreciation 520 339 Cash 200 100 Common Stock 1,000 700 DIVIDENDS PAYABLE 40 25 Equipment 2,700 2,395 Income Tax Payable 100 135 Inventory 1,120 890 Mortgage Payable 900 1,265 Prepaid General Expenses 300 350 Retained Earnings (ending balance, after closing) 1,545 1,098 Unearned Sales Revenue 50 78 Income Statement Data (for 20X2) Sales 10,000 Loss on sale of PPE 100 Cost of Goods Sold 6,000 General Expense 2,000 Depreciation Expense 330 Income Tax Expense 700 Total Expenses 9,130 Net Income 870 Additional Information: Equipment with a book value of $300 was sold during 20X2. All accounts payable relate to inventory purchases. Equipment costing $160 was purchased with a mortgage during 20X2. This fact is already reflected in the balance sheet numbers reported above. All other purchases of Equipment in 20X2 were cash transactions. 4. Compute the amount of Cash Paid for Inventory Purchases in 20X2. $6,100 $5,700 $6,160 $6,230 $5,840 $6,300 $6,280 5. Compute the total CASH FROM OPERATING ACTIVITIES in 20X2. $1,183 $1,200 $1,300 $927 $697 $1,027 $1,227 $1,127 6. Compute the total CASH FROM INVESTING ACTIVITIES in 20X2. net outflow of $394 net outflow of $343 net outflow of $455 net inflow of $500 7. Compute the CASH PAID FOR DIVIDENDS in 20X2. $422 $458 $378 $428 $408 8. Portland Company sold equipment with a book value of $600 for $850 cash. Total depreciation expense for the entire company for the year was $500. The beginning and ending balances in the Accumulated Depreciation account are $1,000 and $700, respectively. The beginning and ending balances in the Equipment account are $3,500 and $3,700 respectively. In the journal entry to record the sale of the equipment for $850 cash, which ONE of the following items would appear? Note: No other equipment was sold during the year. Credit to Equipment for $1,400 Debit to Accumulated Depreciation for $500 Debit to accumulated Depreciation for $300 Debit to Loss on Sale of Equipment for $250 Debit to Equipment for $200 9. The following data come from the financial statements of Tarazi Aina Company for 20X8. Dividends declared and paid during the year $65 Increase in stockholder's equity during the year 100 Depreciation expense for the year 40 Increase in interest payable during the year 11 Total cash received from operating activities during the year 124 Increase in accumulated depreciation during the year 32 Increase in cash during the year 15 Net income for the year 90 Interest expense for the year 55 Total cash paid for investing activities during the year 185 What was the amount of cash received through the issuance of new shares of stock by Tarazi Aina Company during the year 20X8? $100 $55 $75 $35 $10 $25 $115 $60 10. Which ONE of the following accounts will be CREDITED when making closing entries? Unearned Revenue Cash Interest Revenue Accounts Payable Cost of Goods Sold Prepaid Rent Expense Inventory Paid in Capital 11. The following information is for Byrne Dareid Company: 20X2 20X1 Loans Payable $10,000 $20,000 Retained Earnings 85,000 78,000 Common Stock 25,000 17,000 Net Income 18,000 20,000 Net cash paid for financing activities 27,000 21,000 Using this information, compute the cash paid to repurchase shares of stock in 20X2. $19,000 $10,000 $5,000 $14,000 $21,000 12. Harry Company's statement of cash flows shows the following items scattered among the three sections of the statement. Accounts receivable decrease $36,000 Gain on sale of equipment 13,000 Prepaid rent increase 22,000 Cash used to repay long-term loans 80,000 Accounts payable decrease 18,000 Inventory decrease 50,000 Dividends (declared and paid) 40,000 Interest payable decrease 26,000 Cash paid to purchase new equipment 125,000 Depreciation expense 25,000 Net cash flow from operating activities positive 100,000 This is not a list of all of the items in Harry's statement of cash flows, but Harry has no other items reported in the operating activities section of its statement of cash flows (prepared using the indirect method). What is Harry's net income? $28,000 $42,000 $68,000 $118,000 $92,000 $290,000 $108,000 $132,000 13. Lily Company had the following account totals as of December 31, 20X2. Cost of goods sold $150,000 Accounts receivable 100,000 Rent revenue 10,000 Accounts payable 25,000 Sales 200,000 Inventory 50,000 Bank Loan Payable* 20,000 Cash 18,000 Retained earnings (beginning of year, January 1, 20X2) 80,000 Prepaid insurance (6-month insurance policy) 15,000 Paid-in capital 38,000 Equipment 45,000 Unearned rent revenue (9-month contract) 5,000 *Of the $20,000 bank loan payable, $3,000 will be repaid in 20X3. What is Lily Company's CURRENT RATIO? 5.74 6.14 4.06 5.90 5.55 14. The following items have been extracted from the financial statements of Lorien Company for the year 20X1. Total liabilities $700 Net income 50 Gross profit 400 EBIT (also called operating income) 220 Sales 1,000 Total assets 1,600 Income tax expense 40 Cost of goods sold 600 Note: This list does not include all of the items in Lorien's 20X1 financial statements. However, the list does include all of the items you need to correctly answer the question below. What is the value of Lorien Company's TIMES INTEREST EARNED ratio for 20X1? 1.69 3.08 3.38 3.00 1.29 5.50 4.40 2.69 15. Rocky Company borrowed $10,000 on February 1, 20X1. The loan has an annual interest rate of 14%. Rocky Company repaid the loan in full (both principal and interest) on January 31, 20X2; no payments were made on the loan between February 1, 20X1 and January 31, 20X2. [Note: The correct adjusting entry with respect to this loan was recorded on December 31, 20X1.] The single journal entry to record the repayment of the loan (both principal and interest) on January 31, 20X2 includes a Debit to Interest Expense for $1,283 Credit to Interest Expense for $1,283 Debit to Interest Expense for $1,167 Credit to Interest Expense for $1,167 Debit to Interest Expense for $1,400 Credit to Interest Expense for $1,400 Debit to Interest Payable for $1,283 Credit to Interest Payable for $1,283 16. On June 1, 20X1, MaScare Company paid $3,600 for an insurance policy on some equipment that will be in effect for the 12 months from June 1, 20X1 through May 31, 20X2. MaScare recorded this payment on June 1 by debiting Insurance Expense. On September 1, 20X1, MaScare paid an additional $4,800 for an insurance policy on a building that will be in effect for the 12 months from September 1, 20X1 through August 31, 20X2. MaScare recorded this payment on September 1 by debiting Prepaid Insurance. On December 31, 20X1, MaScare makes one summary adjusting entry to make sure that the amount of Insurance Expense for 20X1 and the Prepaid Insurance amount as of December 31, 20X1 are both correct. The necessary summary adjusting entry includes a Debit to Insurance Expense of $1,500 Debit to Insurance Expense of $100 Debit to Insurance Expense of $2,100 Debit to Insurance Expense of $1,600 17. The following information is for Yosef Company: 20X2 20X1 Sales $260,000 $320,000 Accounts Payable 10,000 20,000 Retained Earnings 125,000 78,000 Inventory 40,000 50,000 Accounts Receivable 25,000 20,000 Cost of Goods Sold 180,000 200,000 For 20X2, compute the average number of days that elapse from the time Yosef purchases inventory until the time Yosef sells that inventory. 59.7 days 122.9 days 32.2 days 91.3 days 105.2 days Use the following information to answer the following 5 questions. XYZ Company Balance Sheet as of December 31, 20X7 & 20X8 ASSETS: 20X7 20X8 Cash $10,000 $12,000 Accounts receivable 20,000 25,000 Inventory 16,000 24,000 Prepaid insurance 4,000 3,000 50,000 64,000 Property & equipment 76,000 84,000 Total assets $126,000 $148,000 Accounts payable $15,000 $17,000 Other payables 3,000 7,000 18,000 24,000 Long term notes payable 35,000 40,000 Total liabilities 53,000 64,000 Capital stock, 2,400 shares outstanding 24,000 24,000 Retained earnings 49,000 60,000 73,000 84,000 Current assets: LIABILITIES AND STOCKHOLDERS EQUITY: Current liabilities: Stockholder's equity Total liabilities and stockholders equity $126,000 $148,000 XYZ Company Income Statement for the years ended December 31, 20X7 & 20X8 20X7 20X8 Sales revenues $200,000 $250,000 Cost of goods sold 120,000 140,000 80,000 110,000 40,000 65,000 40,000 65,000 Income tax expense 15,000 25,000 Net income $25,000 $40,000 Selling and admin. expenses Dividends paid in 20X8 amounted to $29,000. Calculate the 12/31/X8 current ratio (round to nearest tenth). 18. Calculate the 12/31/X8 current ratio (round to nearest tenth). 1.5 2.7 2.5 .5 none of the above 19. Calculate the 20X8 accounts receivable turnover assuming all sales during the year are made on account (round to the nearest tenth). 8.9 10.0 11.1 12.5 none of the above 20. Calculate the 20X8 average number of days of inventory on hand (round to the nearest tenth of a day). 7.0 52.1 56.2 62.6 21. Calculate the 20X8 EPS (round to nearest penny). $25.00 $10.42 $4.58 $16.67 none of the above 22. Calculate the % increase in accounts receivable during the year ended 20X8. 10% 20% 50% 125% none of the above 23. Which of the following best measures a company's liquidity? vertical analysis of the income statement debt to equity ratio acid-test ratio book value per share 24. A company's P/E ratio is calculated by dividing the company's book value per share by its EPS. measures a company's leverage. measures a company's liquidity. is used to measure a company's stock price relative to its earnings. is rarely used by value oriented investors