QUESTION 1

1.Use the informtion below to answer questions 1-11:

Cash

$20,000.00

A/R

$70,000.00

Inventory

$100,000.00

A/P(Short Term)

$160,000.00

Bonds Payable (long term debt)

$400,000.00

Common Stock(Outstanding Shares 1,000)

$30,000.00

Retained Earnings

$180,000.00

Fixed Assets

$580,000.00

2.From the information above, calculate Total Current Assets.It may be more helpful to first do a Balance Sheet from the information provided.

3.Enter your answer without dollar signs and no commas. Example $150,000 entered as 150000

4.

5.

6.

QUESTION 2

1.From the information above, calculate Total Current Liabilities.It may be more helpful to first do a Balance Sheet from the information provided.

Enter your answer without dollar signs and no commas. Example $150,000 entered as 150000

QUESTION 3

1.From the information above, calculate Total Assets.It may be more helpful to first do a Balance Sheet from the information provided.

Enter your answer without dollar signs and no commas. Example $150,000 entered as 150000

QUESTION 4

1.From the information above, calculate Total Owners Equity.It may be more helpful to first do a Balance Sheet from the information provided.

Enter your answer without dollar signs and no commas. Example $150,000 entered as 150000

QUESTION 5

1.From the information above, calculate Total Long Term Liabilities.It may be more helpful to first do a Balance Sheet from the information provided.

Enter your answer without dollar signs and no commas. Example $150,000 entered as 150000

QUESTION 6

1.From the information above, calculate Total Liabilities and Owners Equity.It may be more helpful to first do a Balance Sheet from the information provided.

Enter your answer without dollar signs and no commas. Example $150,000 entered as 150000

QUESTION 7

1.From the above information, calculate the Current Ratio.

Carry your answer 2 decimal places and round appropriately.Example 1.3467 entered as 1.35

QUESTION 8

1.Calculate the Quick Ratio.

Carry your answer 2 decimal places and round appropriately.Example .3467 entered as .35

QUESTION 9

1.If a company had a Current Ratio of 1.5 and a Quick Ratio of .75, would you extend credit to this company on a short term basis? Consider how the company's current asset of inventory would impact your decision. Provide your reasoning. I am looking for a short paragraph answer.

QUESTION 10

1.If the Company's Net Income for the year was $30,000, calculate the Company's Earnings Per Share.

Enter your answer without dollar signs and no commas. Round to the nearest whole number. Example 25.67 entered as 26

QUESTION 11

1.The Company's Ending Retained Earnings was $180,000. If it paid no dividends for the year and had Net Income of $30,000 for the year, what was its beginning Retained Earnings balance?

Enter your answer without dollar signs and no commas. Round to the nearest whole number. Example $100,000 entered as 100000

QUESTION 12

1.

Use the following tax rates to answer questions 12-15 Also, assume the business has taxable income of $150,000.

Taxable IncomeTax Rate

$0-50,00015%

50,001-75,00025%

75,001-100,00034%

100,001-335,00039%

2.How much tax will this company pay based on the information above.

3.Enter your answer without dollar signs and no commas. Round to the nearest whole number. Example $50,000.35 entered as 50000

4.

QUESTION 13

1.What is the average tax rate paid by the the taxpayer?

Carry the decimal two places and round.24.877 % would be entered as 24.88

QUESTION 14

1.What is the "Marginal Tax Rate" for this taxpayer at this level of income?

Your answer should have no decimal points. 34% would be entered as 34

QUESTION 15

1.At this marginal tax rate, how much additional tax will this taxpayer pay on an additional $10,000 of taxable income?

Enter your answer without dollar signs and no commas. Example $4,000 would be entered as 4000

QUESTION 16

1.Below is a partial image from the Balance Sheet of the XYZ Company: