Question : 81. A company preparing a common-size balance sheet and wishes the : 1256439

 

 

81. A company is preparing a common-size balance sheet and wishes the base amount to be the total amount of assets. What are the 2013 and 2014 common-size percents for cash? 

 

2013

2014

Cash

$21,904

$32,203

Total current assets

101,769

141,128

Property and equipment

112,577

202,558

Long-term investments

12,700

4,344

Intangible assets

16,621

48,703

Other long-term assets

11,709

13,754

Total assets

$255,376

$410,487

A. 21.52% in 2013 and 22.82% in 2014.B. 7.90% in 2013 and 7.27% in 2014.C. 8.58% in 2013 and 7.85% in 2014.D. 19.30% in 2013 and 20.79 in 2014.E. The percent cannot be computed for 2013 and it is 47.01% in 2014.

 

82. Oakley Corporation has the following comparative income statements. Which of the following statements is false with regard to this comparative data? 

OAKLEY CORPORATION

Comparative Income Statements

For Years Ended December 31, 2014 and 2013

 

2014

2013

Sales

$360,000

$267,500

Cost of goods sold

237,600

140,170

Gross profit

122,400

127,330

Operating expenses

75,600

51,895

Net income

$46,800

$75,435

A. The common-size sales percent for 2014 equals 100%.B. The common-size net income percent for 2013 equals 28.04%.C. The common-size gross profit percent for 2014 equals (3.87)%.D. The common-size cost of goods sold for 2013 equals 52.4%.E. The common-size operating expenses for 2014 equals.

 

 

83. Current assets minus current liabilities is equal to: A. Profit marginB. Financial leverageC. Current ratioD. Working capitalE. Quick assets

 

 

84. Current assets divided by current liabilities is equal to the: A. Current ratioB. Quick ratioC. Debt ratioD. Liquidity ratioE. Solvency ratio

 

 

85. Quick assets divided by current liabilities is equal to the: A. Acid-test ratioB. Current ratioC. Working capital ratioD. Current liability turnover ratioE. Quick asset turnover ratio

 

 

86. Net sales divided by average accounts receivable is equal to the: A. Days’ sales uncollectedB. Average accounts receivable ratioC. Current ratioD. Profit marginE. Accounts receivable turnover ratio

 

 

87. Dividing accounts receivable by net sales and multiplying the result by 365 is equal to the: A. Profit marginB. Days’ sales uncollectedC. Accounts receivable turnover ratioD. Average accounts receivable ratioE. Current ratio

 

 

88. Dividing ending inventory by cost of goods sold and multiplying the result by 365 is equal to the: A. Inventory turnover ratioB. Profit marginC. Days’ sales in inventoryD. Current ratioE. Total asset turnover

 

 

89. Net sales divided by average total assets is equal to the: A. Profit marginB. Total asset turnoverC. Current ratioD. Sales return ratioE. Return on total assets

 

 

90. Net income divided by net sales is equal to the: A. Return on total assetsB. Profit marginC. Current ratioD. Total asset turnoverE. Days’ sales in inventory

 

 

 

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