Question
Question 29 1. 29. The financial statements of New World, Inc., provide the following information for January 1 and December 31 of the current year:
Question 29 1. 29. The financial statements of New World, Inc., provide the following information for January 1 and December 31 of the current year: Description Dec. 31 Jan. 1 Accounts Receivable 273,000 241,500 Inventory 262,500 252,000 Prepaid expenses 67,200 63,000 Accounts payable (for merchandise) 237,300 221,550 Accrued expenses payable 66,150 72,450 Net Sales 3,097,500 Cost of Goods Sold 1,627,500 Operating expenses (including depreciation of $94,500) 367,500 Compute the amount of cash received from customers during the current year: A) 3,097,500 B) 3,129,000 C) 3,066,000 D) 3,612,000 Question 30 1. Use the following to answer questions 30-31: Shown below are selected data from the balance sheet of HiTech, a small electronics store (dollar amounts are in thousands): Cash.................................................................................... $25 Accounts receivable............................................................. 45 Inventory............................................................................. 80 Total assets.......................................................................... 400 Current liabilities................................................................... 100 Non current liabilities............................................................ 240 30. Refer to the above data. The current ratio is: A) 5.0 to 1. B) 1.5 to 1. C) .7 to 1. D) Some other amount. Question 31 1. Use the following to answer questions 30-31: Shown below are selected data from the balance sheet of HiTech, a small electronics store (dollar amounts are in thousands): Cash.................................................................................... $25 Accounts receivable............................................................. 45 Inventory............................................................................. 80 Total assets.......................................................................... 400 Current liabilities................................................................... 100 Non current liabilities............................................................ 240 31. Refer to the above data. Hi-Tech's debt ratio is: A) 85%. B) 25%. C) 60%. D) Some other amount. Question 32 1. Use the following to answer questions 32-35: Shown below are selected data from the financial statements of A-l Computers. (Dollar amounts are in millions, except for the per-share data.) Income statement data: Net sales...................................................................... $2,500 Cost of goods sold........................................................ 1,300 Operating expenses...................................................... 400 Net income.................................................................. 75 Balance sheet data: Average total equity....................................................... 300 Average total assets...................................................... 4,000 Per share data (these amounts stated in actual dollars, not millions): A-1 reported earnings per share for the year of $4 and paid cash dividends of $1.50 per share. At year-end, the Wall Street Journal listed A-1's capital stock as trading at $48 per share. 32. Refer to the above data. A-1's price/earnings ratio at year-end was: A) .8. B) 12. C) 24. D) Some other amount. Question 33 1. Use the following to answer questions 32-35: Shown below are selected data from the financial statements of A-l Computers. (Dollar amounts are in millions, except for the per-share data.) Income statement data: Net sales...................................................................... $2,500 Cost of goods sold........................................................ 1,300 Operating expenses...................................................... 400 Net income.................................................................. 75 Balance sheet data: Average total equity....................................................... 300 Average total assets...................................................... 4,000 Per share data (these amounts stated in actual dollars, not millions): A-1 reported earnings per share for the year of $4 and paid cash dividends of $1.50 per share. At year-end, the Wall Street Journal listed A-1's capital stock as trading at $48 per share. 33. Refer to the above data. A-1's Gross Profit rate was: A) 20%. B) 48%. C) 52%. D) Some other amount. Question 34 1. Use the following to answer questions 32-35: Shown below are selected data from the financial statements of A-l Computers. (Dollar amounts are in millions, except for the per-share data.) Income statement data: Net sales...................................................................... $2,500 Cost of goods sold........................................................ 1,300 Operating expenses...................................................... 400 Net income.................................................................. 75 Balance sheet data: Average total equity....................................................... 300 Average total assets...................................................... 4,000 Per share data (these amounts stated in actual dollars, not millions): A-1 reported earnings per share for the year of $4 and paid cash dividends of $1.50 per share. At year-end, the Wall Street Journal listed A-1's capital stock as trading at $48 per share. 34. Refer to the above data. A-1's operating income was: A) $1,200. B) $400. C) $800. D) Some other amount. 6.286 points Question 35 1. Use the following to answer questions 32-35: Shown below are selected data from the financial statements of A-l Computers. (Dollar amounts are in millions, except for the per-share data.) Income statement data: Net sales...................................................................... $2,500 Cost of goods sold........................................................ 1,300 Operating expenses...................................................... 400 Net income.................................................................. 75 Balance sheet data: Average total equity....................................................... 300 Average total assets...................................................... 4,000 Per share data (these amounts stated in actual dollars, not millions): A-1 reported earnings per share for the year of $4 and paid cash dividends of $1.50 per share. At year-end, the Wall Street Journal listed A-1's capital stock as trading at $48 per share. 35. Refer to the above data. A-1's return on equity was: A) 10%. B) 20%. C) 25%. D) Some other amount.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started