Q25:

Moorman Corporation reports the following information:

Correction of overstatement of depreciation expense

in prior years, net of tax $ 430,000

Dividends declared 320,000

Net income 1,000,000

Retained earnings, 1/1/10, as reported 2,000,000

Moorman should report retained earnings, 31/12/10, as adjusted at

Select one:

a.

$1,820,000

b.

$2,250,000

c.

$3,110,000

d.

$3,430,000

Q26:

X Co. has the following information:

Sale $ 1,200,000

Cost of sales $800,000

Operating expenses $200,000

interest expense $ 20,000

Tax $ 10,000

current liabilities $120,000

Non-current liabilities $200,000

share capital $ 500,000

Retained earnings $ 300,000

the returns on assets ratio is

a.

21.25%

b.

15.17%

c.

17%

d.

1.2 x