Question :
51. Max’s Tire Center CompanySelected data from the financial statements of : 1224929
51. Max’s Tire Center CompanySelected data from the financial statements of Max’s Tire Center are provided below.
2012
2011
Inventory
$ 55,000
$ 46,000
Cost of sales
120,000
110,000
Total assets
500,000
490,000
Cash flow from operations
320,000
289,000
Net sales
390,000
360,000
Capital expenditures
15,000
13,000
Refer to the selected data provided for Max’s Tire Center. Which of the following would result from a horizontal analysis of Max’s balance sheet? A. Inventory increased by 19.57% during 2012.B. Inventory increased by 26% during 2012.C. Inventory is 11.0% of total assets in 2012.D. The total assets is $500,000 in 2012.
52. Max’s Tire Center CompanySelected data from the financial statements of Max’s Tire Center are provided below.
2012
2011
Inventory
$ 55,000
$ 46,000
Cost of sales
120,000
110,000
Total assets
500,000
490,000
Cash flow from operations
320,000
289,000
Net sales
390,000
360,000
Capital expenditures
15,000
13,000
Refer to the selected data provided for Max’s Tire Center. Which of the following would result from a horizontal analysis of Max’s income statement? A. Cost of sales increased by 9.09% during 2012.B. Cost of sales increased by 11% during 2012.C. Cost of sales is 30.76% of Net Sales in 2012.D. Cost of sales more than double the inventory in 2012..
53. Max’s Tire Center CompanySelected data from the financial statements of Max’s Tire Center are provided below.
2012
2011
Inventory
$ 55,000
$ 46,000
Cost of sales
120,000
110,000
Total assets
500,000
490,000
Cash flow from operations
320,000
289,000
Net sales
390,000
360,000
Capital expenditures
15,000
13,000
Refer to the selected data provided for Max’s Tire Center. Which of the following would result from a vertical analysis of Max’s balance sheet in 2012? A. Inventory increased by 19.57% during 2012.B. Inventory is 14.10% of net sales in 2012..C. Inventory is 8.20% of total assets in 2012.D. Inventory is 11% of total assets in 2012.
54. Max’s Tire Center CompanySelected data from the financial statements of Max’s Tire Center are provided below.
2012
2011
Inventory
$ 55,000
$ 46,000
Cost of sales
120,000
110,000
Total assets
500,000
490,000
Cash flow from operations
320,000
289,000
Net sales
390,000
360,000
Capital expenditures
15,000
13,000
Refer to the selected data provided for Max’s Tire Center. Which of the following would result from a vertical analysis of Max’s income statement in 2012? A. Cost of sales increased by 9.09% during 2012.B. Cost of sales is $390,000 in 2012.C. Cost of sales is 30.77% of total assets in 2012.D. Cost of sales is 30.77% of total sales in 2012.
55. Max’s Tire Center CompanySelected data from the financial statements of Max’s Tire Center are provided below.
2012
2011
Inventory
$ 55,000
$ 46,000
Cost of sales
120,000
110,000
Total assets
500,000
490,000
Cash flow from operations
320,000
289,000
Net sales
390,000
360,000
Capital expenditures
15,000
13,000
Refer to the selected data provided for Max’s Tire Center. What is Max’s inventory turnover in 2012? A. The inventory turnover is 2.10 in 2012.B. The inventory turnover is 2.61 in 2012.C. The inventory turnover is 2.08 in 2012.D. The inventory turnover is 2.38 in 2012.
56. Max’s Tire Center CompanySelected data from the financial statements of Max’s Tire Center are provided below.
2012
2011
Inventory
$ 55,000
$ 46,000
Cost of sales
120,000
110,000
Total assets
500,000
490,000
Cash flow from operations
320,000
289,000
Net sales
390,000
360,000
Capital expenditures
15,000
13,000
Refer to the selected data provided for Max’s Tire Center. What is Max’s days-in-inventory ratio in 2012? A. The days-in-inventory ratio is 153.60 days in 2012.B. The days-in-inventory ratio is 167.29 days in 2012.C. The days-in-inventory ratio is 139.92 days in 2012.D. The days-in-inventory ratio is 173.81 days in 2012.
57. Inventory turnover: A. is computed by dividing average inventory by cost of merchandise sold.B. measures the relationship between the volume of goods sold and amount of inventory carried.C. increases the risk of loss from damaged merchandise.D. is computed by dividing the beginning inventory plus the ending inventory by two.
58. The days-in-inventory ratio: A. measures the length of time it takes to acquire, sell, and replace the inventory.B. is computed by dividing the cost of merchandise sold by 365.C. measures the length of time it takes to sell the merchandise on credit and collect the account receivable.D. is about the same for all industries.
59. Augustus, Inc. buys designer clothing to sell in its retail stores. Since much of the merchandise comes from New York and Europe, Augustus must pay freight charges to get the merchandise shipped in. Which of the following statements must be true? A. Transportation-in, paid by Augustus, is added to the inventory account under the periodic system.B. Transportation-in, paid by Augustus, is subtracted from purchases under the periodic system.C. Freight charges are only paid by a buyer in a periodic system.D. Transportation-in is included in the total cost of purchases used to determine cost of goods sold in a periodic system.
60. How are purchase returns and purchase discounts recorded by a company using the periodic inventory system? A. As a reduction to the Purchases account.B. In contra-accounts to the Purchases account.C. As operating expenses.D. As miscellaneous expenses.
