Question :
131. Use the following information to answer questions 44-46.
Accounts payable
$ 30,000
: 1246682
131. Use the following information to answer questions 44-46.
Accounts payable
$ 30,000
Accounts receivable
65,000
Accrued liabilities
7,000
Cash
25,000
Intangible assets
40,000
Inventory
72,000
Long-term investments
100,000
Long-term liabilities
75,000
Marketable securities
36,000
Notes payable (short-term)
20,000
Property, plant, and equipment
625,000
Prepaid expenses
2,000
Based on the above data, what is the quick ratio, rounded to one decimal point? A. 2.2B. 3.5C. 3.0D. 1.6
132. The tendency of the rate earned on stockholders’ equity to vary disproportionately from the rate earned on total assets is sometimes referred to as A. leverageB. solvencyC. yieldD. quick assets
133. Use the following information for questions 48-51.The balance sheets at the end of each of the first two years of operations indicate the following:
2010
2009
Total current assets
$600,000
$560,000
Total investments
60,000
40,000
Total property, plant, and equipment
900,000
700,000
Total current liabilities
125,000
80,000
Total long-term liabilities
350,000
250,000
Preferred 9% stock, $100 par
100,000
100,000
Common stock, $10 par
600,000
600,000
Paid-in capital in excess of par-common stock
60,000
60,000
Retained earnings
325,000
210,000
If net income is $115,000 and interest expense is $30,000 for 2010 what is the rate earned on total assets for 2010 (round percent to one decimal point)? A. 9.3%B. 10.1%C. 8.0%D. 7.4%
134. Use the following information for questions 48-51.The balance sheets at the end of each of the first two years of operations indicate the following:
2010
2009
Total current assets
$600,000
$560,000
Total investments
60,000
40,000
Total property, plant, and equipment
900,000
700,000
Total current liabilities
125,000
80,000
Total long-term liabilities
350,000
250,000
Preferred 9% stock, $100 par
100,000
100,000
Common stock, $10 par
600,000
600,000
Paid-in capital in excess of par-common stock
60,000
60,000
Retained earnings
325,000
210,000
If net income is $115,000 and interest expense is $30,000 for 2010, what is the rate earned on stockholders’ equity for 2010 (round percent to one decimal point)? A. 10.6%B. 11.2%C. 12.4%D. 15.6%
135. Use the following information for questions 48-51.The balance sheets at the end of each of the first two years of operations indicate the following:
2010
2009
Total current assets
$600,000
$560,000
Total investments
60,000
40,000
Total property, plant, and equipment
900,000
700,000
Total current liabilities
125,000
80,000
Total long-term liabilities
350,000
250,000
Preferred 9% stock, $100 par
100,000
100,000
Common stock, $10 par
600,000
600,000
Paid-in capital in excess of par-common stock
60,000
60,000
Retained earnings
325,000
210,000
If net income is $115,000 and interest expense is $30,000 for 2010, what are the earnings per share on common stock for 2010, (round to two decimal places)? A. $1.92B. $1.89C. $1.77D. $1.42
136. Use the following information for questions 48-51.The balance sheets at the end of each of the first two years of operations indicate the following:
2010
2009
Total current assets
$600,000
$560,000
Total investments
60,000
40,000
Total property, plant, and equipment
900,000
700,000
Total current liabilities
125,000
80,000
Total long-term liabilities
350,000
250,000
Preferred 9% stock, $100 par
100,000
100,000
Common stock, $10 par
600,000
600,000
Paid-in capital in excess of par-common stock
60,000
60,000
Retained earnings
325,000
210,000
If net income is $115,000 and interest expense is $30,000 for 2010, and the market price is $30, What is the price-earnings ratio on common stock for 2010. (round to one decimal point)? A. 17.0B. 12.1C. 12.4D. 15.9
137. The numerator of the rate earned on common stockholders’ equity ratio is equal to A. net incomeB. net income minus preferred dividendsC. income plus interest expenseD. income minus interest expense
138. The numerator of the rate earned on total assets ratio is equal to A. net incomeB. income before taxesC. income plus interest expenseD. net income minus preferred dividends
139. For most profitable companies, the rate earned on stockholders’ equity will be less than A. the rate earned on total assetsB. the rate earned on total liabilities and stockholders’ equityC. the rate earned on salesD. the rate earned on common stockholders’ equity
140. The following information is available for Gomez Company.:
2009
Market price per share of common stock
$25.00
Earnings per share on common stock
1.25
Which of the following statements is correct? A. The price-earnings ratio is 20 and a share of common stock was selling for 20 times the amount of earnings per share at the end of 2009.B. The price-earnings ratio is 5.0% and a share of common stock was selling for 5.0% more than the amount of earnings per share at the end of 2009.C. The price-earnings ratio is 10 and a share of common stock was selling for 125 times the amount of earnings per share at the end of 2009.D. The market price per share and the earnings per share are not statistically related to each other.
