Question
Please refer to Table 4-3 for the following questions. Table 4-3 Emery Corporation Balance Sheet Income Statement Assets: Cash $250,000 Sales (all credit) $8,000,000 Accounts
Please refer to Table 4-3 for the following questions.
Table 4-3
Emery Corporation
Balance Sheet Income Statement
Assets: |
|
|
|
|
Cash | $250,000 |
| Sales (all credit) | $8,000,000 |
Accounts receivable | 450,000 |
| Cost of goods sold | (4,000,000) |
Inventory | 500,000 |
| Operating expense | (2,900,000) |
Net fixed assets | 2,100,000 |
| Interest expense | (150,000) |
Total assets | $3,300,000 |
| Income taxes | (380,000) |
|
|
| Net income | $570,000 |
Liabilities and owners' equity: |
|
|
|
|
Accounts payable | $100,000 |
|
|
|
Notes payable | 450,000 |
|
|
|
Long-term debt | 1,050,000 |
|
|
|
|
|
|
|
|
Owners' Equity | 1,700,000 |
|
|
|
Total liabilities and owner's equity | $3,300,000 |
|
|
|
9) Based on the information in Table 4-3, the average collection period is
A) 38.01 days.
B) 27.36 days.
C) 20.53 days.
D) 17.49 days.
10) Based on the information in Table 4-3, the operating return on total assets is
A) 55.62%.
B) 10.06%.
C) 44.74%.
D) 33.33%.
11) Based on the information in Table 4-3, the operating profit margin is
A) 13.75%.
B) 18.59%.
C) 25.80%.
D) 33.33%.
12) Based on the information in Table 4-3, the total asset turnover is
A) 2.10 times.
B) 2.42 times.
C) 2.87 times.
D) 3.25 times.
13) Based on the information in Table 4-3, the debt ratio is
A) 18.38%.
B) 40.24%.
C) 48.48%.
D) 53.43%.
14) Based on the information in Table 4-3, the current and acid-test ratios are, respectively,
A) 2.37 and 1.39.
B) 2.37 and 1.27.
C) 2.18 and 1.39.
D) 2.18 and 1.27.
15) Based on the information in Table 4-3, assuming that the firm has no preferred stock, and paid $300,000 in common dividends, the firm's return on equity was
A) 79.43%.
B) 61.89%.
C) 43.34%.
D) 33.53%.
16) In addition to the information contained in Table 4-4, you know that the current ratio for 2010 is 4 and that the corporation paid $11,600 in dividends in 2010. What is Wes Donnell's retained earnings balance for 2010?
A) $10,000
B) $8,000
C) $19,600
D) $2,600
17) In addition to the information contained in Table 4-4, you know that the current ratio for 2010 is 4 and that the corporation paid $11,600 in dividends in 2010. What is Wes Donnell's inventory turnover for 2010?
A) 0.13
B) 11.1
C) 9.3
D) 7.78
18) In addition to the information contained in Table 4-4, you know that the current ratio for 2010 is 4 and that the corporation paid $11,600 in dividends in 2010. What is Wes Donnell's total asset balance for 2010?
A) $42,500
B) $36,500
C) $38,500
D) $26,900
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Thank's Abdul-Rahim Taysir
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