D Question 5 2 pts The Rose Cereal Company shows the following for the year ended December 31, 2013: Net sales $1,300,000 Net income $500,000 Net accounts receivable 1/1 $250,000 Net accounts receivable 12/31 $ 150,000 What is the average collection period? 56 days 70 days 42 days 146 days D Question 6 2 pts You are given the following information: 30 2 pts Question 6 You are given the following information: $600,000 Income before interest and taxes (45.000) Less: Interest expense $555,000 Balance (222,000) Less: Taxes (at 40% rate ) $333,000 Income after taxes (15.000) Less: Preferred dividends $318,000 Income available to common stockholders The number of times interest was earned is: 12.33 7.40 13.33 33.33 Question 7 2 pts 2 pts Question 7 Given the following information, determine the times interest earned ratio: $900,000 Income before interest and taxes (200,000) Less: Interest expense Income before federal income taxes $700,000 (280,000) Less: Taxes $420,000 Net income 2.10 1.65 4.50 3.50 2 pts D Question 8 The times interest earned ratio reflects the ability of a company to 30 2 pts Question 10 Coronado Company's total costs amounted to $40,000 for direct materials, direct labor, and manufacturing overhead in producing 10,000 headphones during the year. Selling costs were $6,000 and administrative costs were $5,000, and 7,000 headsets were sold. The amount expensed on the income statement for the year would include product and period costs of: $40,000 product and $5,000 period. $28,000 product and $11,000 period. $40,000 product and $11,000 period. $35,000 product and $6,000 period 2 pts Question 11 Which of the four elements listed below would not be considered a product cost? Salary of the president of the company 2pts Question 14 The following data pertain to the Inntell Co.: Materials inventory, 1/1/16.. Materials inventory, 12/31/16. 21,600 Materials purchases.. Work in process inventory, 1/1/16..... .3,600 $48,400 71,600 49,200 Work in process inventory, 12/31/16.. 68,400 Direct labor.. 97,200 Manufacturing overhead.. Finished goods inventory, 1/1/16..........66,400 77,200 Finished goods inventory, 12/31/16 Cost of goods sold should be: $267,600 $206,800 $264,000 $240,800 HON 30 OO True False 2 pts Question 19 The current sales are $200,000 while break-even sales are $150,000. What is the margin of safety rate? 0.8 0.2 0.25 0.5 2 pts Question 20 Yu Co. sells a single product at $80 per unit. For output up to 80,000 units, its fixed costs are $400,000. Variable costs are $20 per unit. If 40,000 units are produced and sold, the company has net income (loss) of: $1.600.000 30 Yu Co. sells a single product at $80 per unit. For output up to 80,000 units, its fixed costs are $400,000. Variable costs are $20 per unit. If 40,000 units are produced and sold, the company has net income (loss) of: $1,600,000 $2,100,000 $2,000,000 $1,050,000 2 pts D Question 21 A company has fixed costs of $30,000 making a product that sells for $40 and has a variable cost of $16. What is the break-even point in dollars? $ 60,000 $50,000 $ 30,000 $100,000 30
