Pacer LTD is a defendant in a current lawsuit that it estimates a $90,000 probable loss. The loss contingency should be:

a. Disclosed and accrued as a liability

b. Disclosed but not accrued as liability

c. Not Disclosed, but accrued as a liability

d. Not Disclosed and not accrued as a liability

What effect will the acquisition of treasury stock have on stockholders' equity and working capital?

a. Decrease and no effect

b. Increase and no effect

c. Decrease and increase

d. Increase and decrease

Genesis Company has the following items: treasury stock, $120,000; common stock, $825,000; deferred income taxes, $185,000, retained earnings, $430,000, and paid in capital in excess of par $400,000. What total amount should Genesis Company report as stockholders' equity?

A) $1,470,000

B) $1,960,000

C) $1,775,000

D) $1,535,000

E) none of the above

Genesis Company has the following items: treasury stock, $120,000; common stock, $825,000; deferred income taxes, $185,000, retained earnings, $430,000, and paid in capital in excess of par $400,000. What total amount should Genesis Company report as stockholders' equity?

A) $1,470,000

B) $1,960,000

C) $1,775,000

D) $1,535,000

E) none of the above

Islander Companys 2016 financial statements contain the following selected data:

Income Taxes $25,000

Interest Expense $20,000

Net Income $55,000

Islanderss times interest earned for 2016 is:

A)	4.0 times
B)	5.0 times.
C)	2.20 times.
D)	2.75 times.

Cash is $475,000, Accounts Payable is $200,000, Accounts Receivable is $150,000, Wages Payable is $225,000, Bonds Payable is $700,000, Inventory is $750,000. What is working capital?

A)	$250,000
B)	$950,000
C)	$200,000
D)	None of the above

Cash is $475,000, Accounts Payable is $100,000, Accounts Receivable is $175,000, Wages Payable is $225,000, Bonds Payable is $217,000, Inventory is $650,000. What is acid-test (quick) ratio?

A)

2.0

B)

3.0

C)

4.0

D) None of the above

On January 1, 2017, Exiter Company issued 15-year, $1,500,000 face value, 5% bonds, at par. Each $1,000 bond is convertible into 20 shares of common stock. Exiterss net income in 2017 was $142,000, and its tax rate was 30%. The company had 50,000 shares of common stock outstanding throughout 2017. None of the bonds were converted in 2017. What is the diluted earnings per share for 2017? Round to nearest cent.

A)	$2.84
B)	$2.43
C)	$1.78
D)	None of the above

24. Smart Bandwidth and Computeam signed a lease agreement for Smart Bandwidth to lease a server from Computeam. The lease agreement is dated January 1, 2016. The terms and provision of the lease agreement, and other data, is as follows:

Lease term: 5 years noncancelable, requires equal rent payments of $26,000 at the beginning of each year.

Smart Bandwidth pays all of the executory cost directly to third parties except property taxes of $2,500 per year, which is included as part of its rent payment to Computeam.

Smart Bandwidths incremental borrowing rate is 12% per year.

Smart Bandwidth depreciates similar owned equipment on straight line basis.

What is the present value of the minimum lease payments? Round to the nearest dollar.

$94,878

$130,000

$104,971

None of the above