please answer the questions in the attachment. the attachment is provided below. thank you.

1 According to the Generally Accepted Accounting Principles, costs are: recorded when paid. expensed as management desires. matched with revenues. matched with production levels. recorded as incurred. 2 Which one of these accounts is included in net working capital? copyright common stock long-term debt manufacturing equipment inventory 3 Which one of these is a correct definition? Tangible assets are fixed assets such as patents. Net working capital equals current assets plus current liabilities. Current assets are assets with short lives, such as inventory. Current liabilities are debts that must be repaid in 18 months or less. Long-term debt is defined as a residual claim on a firm's assets. 4 Sankey, Inc., has current assets of $5,200, net fixed assets of $25,200, current liabilities of $4,250, and long-term debt round intermediate calculations.) What is the value of the shareholders' equity account for this firm? Shareholders' equity $ How much is net working capital? Net working capital $ 5 Shelton, Inc., has sales of $393,000, costs of $181,000, depreciation expense of $46,000, interest expense of $27,000 percent. (Do not round intermediate calculations.) What is the net income for the firm? Net income $ Suppose the company paid out $36,000 in cash dividends. What is the addition to retained earnings? Addition to retained earnings $ 6 During the year, the Senbet Discount Tire Company had gross sales of $1.23 million. The firm's cost of goods sold were $542,000 and $232,000, respectively. The firm also had notes payable of $970,000. These notes carried an inte Depreciation was $147,000. The firm's tax rate was 35 percent. a. What was the firm's net income? (Do not round intermediate calculations. Enter your answer in dollars, not m e.g., 1,234,567. Round your answer to the nearest whole number, e.g., 32.) Net income $ b. What was the firm's operating cash flow? (Do not round intermediate calculations. Enter your answer in do dollars, e.g., 1,234,567. Round your answer to the nearest whole number, e.g., 32.) Operating cash flow $ 7 Use the following information for Ingersoll, Inc., (assume the tax rate is 40 percent): 2014 Sales Depreciation Cost of goods sold Other expenses Interest Cash Accounts receivable Short-term notes payable Long-term debt Net fixed assets Accounts payable Inventory Dividends $ 9,535 1,295 2,866 809 695 4,279 5,609 964 15,330 36,155 4,656 9,840 1,126 2015 $ 10,109 1,296 3,230 704 773 5,373 6,297 916 17,750 37,317 4,355 10,108 1,221 Prepare an income statement for this company for 2014 and 2015. (Do not round intermediate calculations. Round decimal places, e.g., 32.16.) Ingersoll, Inc., Income Statement 2014 2015 $ $ $ $ $ $ $ $ $ $ Prepare the balance sheet for this company for 2014 and 2015. (Do not round intermediate calculations. Be sure to order of their liquidity.) Ingersoll, Inc. Balance Sheet as of Dec. 31 2014 2015 Assets $ $ Current assets $ $ Total assets $ $ $ $ Liabilities Current liabilities $ $ Total liabilities & owners' equity $ $ 8 Al's Sport Store has sales of $2,790, costs of goods sold of $2,160, inventory of $515, and accounts receivable of $403. How many days, on average, does it take the firm to sell its inventory assuming that all sales are on credit? 67.4 87.0 124.4 85.8 120.0 9 The receivables turnover ratio is measured as: a. sales minus accounts receivable, divided by sales. b. accounts receivable divided by sales. c. sales plus accounts receivable. d. sales divided by accounts receivable. e. accounts receivable times sales. 10 Jessica's Boutique has cash of $40, accounts receivable of $62, accounts payable of $220, and inventory of $150. What is the value of the quick ratio? 1.61 .68 .28 1.15 .46 11 A firm has total debt of $1,440 and a debt-equity ratio of .28. What is the value of the total assets? $6,583 $1,843 $4,042 $2,800 $5,143 12 Which one of the following sets of ratios would generally be of the most interest to stockholders? return on equity and price-earnings ratio quick ratio and times interest earned price-earnings ratio and debt-equity ratio return on assets and profit margin cash coverage ratio and equity multiplier 13 If a firm produces a return on assets of 15 percent and also a return on equity of 15 percent, then the firm: has no net working capital. has an equity multiplier of 2. is using its assets as efficiently as possible. also has a current ratio of 15. has no debt of any kind. 14 Ratios that measure how efficiently a firm's management uses its assets and equity to generate bottom line net income are known as _______ ratios. market value profitability long-term solvency asset management short-term solvency 15 The total asset turnover ratio measures the amount of: sales generated by every $1 in total assets. fixed assets required for every $1 of sales. total assets needed for every $1 of sales. net income than can be generated by every $1 of fixed assets. net income generated by every $1 in total assets. 16 Ratios that measure a firm's ability to pay its bills over the short run without undue stress are known as: profitability ratios. long-term solvency measures. market value ratios. asset management ratios. liquidity measures. 17 The debt-equity ratio is measured as: total assets minus total debt, divided by total equity. total equity divided by total debt. total debt divided by total equity. total equity divided by long-term debt. long-term debt divided by total equity. 18 The current ratio is measured as: current liabilities divided by current assets. current assets minus current liabilities. current assets divided by current liabilities. cash on hand divided by current liabilities. current liabilities minus inventory, divided by current assets. 19 A firm has a debt-equity ratio of .41. What is the total debt ratio? 1.41 .31 1.44 .29 .69 20 Which statement expresses all accounts as a percentage of total assets? common-size income statement pro forma income statement statement of cash flows common-size balance sheet pro forma balance sheet 21 Galaxy United, Inc. 2009 Income Statement ($ in millions) Net sales Less: Cost of goods sold Less: Depreciation Earnings before interest and taxes Less: Interest paid Taxable Income Less: Taxes Net income Cash Accounts rec. Inventory Sub-total Net fixed assets Total assets $8,550 7,190 420 940 78 862 302 $ 560 2008 $ 120 940 1,480 $2,540 3,160 $5,700 Galaxy United, Inc. 2008 and 2009 Balance Sheets ($ in millions) 2009 $ 140 Accounts payable 790 Long-term debt 1,520 Common stock $2,450 Retained earnings 3,650 $6,100 Total liab. & equity What is the return on equity for 2009? rev: 01_14_2016_QC_CS-37830 15 percent 13 percent 10 percent 16 percent 18 percent 22 If Wilkinson, Inc., has an equity multiplier of 1.53, total asset turnover of 1.1, and a profit margin of 6.3 percent, wha round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) ROE % 23 The financial ratio measured as net income divided by sales is known as the firm's: return on assets. earnings before interest and taxes. asset turnover. return on equity. profit margin. 24 The financial ratio that measures the accounting profit per dollar of book equity is referred to as the: price-earnings ratio. profit margin. return on equity. equity turnover. market profit-to-book ratio. 25 Puffy's Pastries generates five cents of net income for every $1 in equity. Thus, Puffy's has _______ of 5 percent. a return on equity a price-earnings ratio an EV multiple a profit margin a return on assets 26 If stockholders want to know how much profit the firm is making on their entire investment in that firm, the stockholders should refer to the: earnings per share. return on equity. return on assets. equity multiplier. profit margin. 27 The most effective method of directly evaluating the financial performance of a firm is to compare the financial ratios of the firm to: the average ratios of all firms within the same country over a period of time. the firm's ratios from prior time periods and to the ratios of firms with similar operations. the average ratios of the firm's international peer group. those of other firms located in the same geographic area that are similarly sized. those of the largest conglomerate that has operations in the same industry as the firm. 28 Which one of these equations is an accurate expression of the balance sheet? Stockholders' equity Assets Liabilities Assets Liabilities Stockholders' equity Liabilities Stockholders' equity Assets Assets Stockholders' equity Liabilities Stockholders' equity Assets + Liabilities 29 The financial statement summarizing a firm's accounting performance over a period of time is the: income statement. tax reconciliation statement. statement of equity. statement of cash flows. balance sheet. 30