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Contingent Liabilities must have the following criteria (select all that apply):

Select one or more:

A.The obligation is certain to require payment at some point in the future.

B.The obligation will probably require payment at some point in the future.

C.The obligation is estimable.

D.The obligation will possibly require payment at some point in the future.

E.None of the above

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EZ Wheels Corporation manufactures kick scooters. The company offers a one-year warranty on all scooters. During the year, the company recorded net sales of $1,520 million. Historically, about 4% of all sales are returned under warranty and the cost of repairing and or replacing goods under warranty is about 30% of retail value. Assume that at the start of the year EZ Wheels' balance sheet included an accrued warranty liability of $13.0 million and at the end of the year, the accrued warranty liability balance was $9.9 million. What was EZ Wheels Corporation's warranty expense for the year?

Select one:

a.$21.3 million

b.$9.9 million

c.$60.8 million

d.$18.2 million

e.None of these are correct.

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Which of the following doesnotaffect the current liabilities section of the balance sheet?

Select one:

A.Sale of goods on credit

B.Insurance bill to be paid next month

C.Purchase of inventory on credit

D.Wages owing to employees but not yet paid

E.A probable legal obligation, due within 12 months

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The year-end financial statements of Time Company reveal average shareholders' equity attributable to controlling interest of $669,826 thousand, net operating profit after tax of $48,032 thousand, net income attributable to the company of $29,068 thousand, and average net operating assets of $283,531 thousand. The company's return on equity (ROE) for the year is:

Select one:

a.There is not enough information to calculate the ratio.

b.10.3%

c.7.2%

d.4.3%

e.16.9%

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The year-end balance sheet of Star Inc. shows total assets of $12,407 million, operating assets of $9,849 million, operating liabilities of $5,291 million, and shareholders' equity of $5,532 million. The company's year-end net operating assets are:

Select one:

a.$9,849 million

b.$4,558 million

c.None of these are correct.

d.$15,140 million

e.$17,698 million

Maxwell's annual financial statements show operating profit before interest and tax of $519,233 thousand, net income of $318,022 thousand, provision for income taxes of $91,270 thousand and net nonoperating expense before tax of $109,491 thousand. Assume Maxwell's statutory tax rate for the year is 37%. Maxwell's tax shield is:

Select one:

a.$295,922 thousand

b.$40,512 thousand

c.$91,270 thousand

d.$33,770 thousand

e.None of these are correct.

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The Year 2 fiscal year-end financial statements for Walter Co. report revenues of $55,743 million, net operating profit after tax of $9,954 million, net operating assets of $58,720 million. The Year 1 fiscal year-end balance sheet reports net operating assets of $59,197 million. Walter's Year 2 net operating profit margin is:

Select one:

a.There is not enough information to calculate the ratio.

b.11.7%

c.17.9%

d.16.8%

e.17.0%

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Kreeger's annual financial statements show net operating profit after tax of $2,291 million, net income of $1,979 million, sales of $115,568 million, and average net operating assets of $18,616 million. Kreeger's net operating asset turnover for the year is:

Select one:

a.16.1%

b.9.4

c.There is not enough information to calculate the ratio.

d.11.0%

e.6.21

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The fiscal year-end financial statements of Reed Enterprises shows average net operating assets (NOA) of $4,805 million, average net nonoperating obligations (NNO) of $605 million, average total liabilities of $6,343 million, and year-end equity of $5,250 million. The company's 2017 financial leverage (FLEV) is:

Select one:

a.0.13

b.0.115

c.There is not enough information to determine the ratio.

d.0.144

e.0.126

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The fiscal year-end balance sheet for Specialists Inc. reports the following data (in millions). What is the company's current ratio?

Cash and	Marketable	Accounts	Merchandise	Current	Current
cash equivalents	Securities	receivable	inventories	assets	liabilities
$344	$371	$237	$507	$1,936	$1,341

Select one:

a.1.44

b.0.69

c.0.71

d.None of these are correct.

e.1.41

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The fiscal year-end balance sheet for Specialists Inc. reports the following data (in millions). What is the company's quick ratio?

Cash and	Marketable	Accounts	Merchandise	Current	Current
cash equivalents	Securities	receivable	inventories	assets	liabilities
$351	$379	$242	$517	$1,975	$1,341

Select one:

a.0.72

b.0.68

c.None of these are correct.

d.1.47

e.1.38