Question :
101.Kerwin Holdings has total assets of $450,000 and shareholders’ equity : 1302942
101.Kerwin Holdings has total assets of $450,000 and shareholders’ equity of $120,000, of which $45,000 of the equity is common stock. How much is the company’s debt-to-equity ratio?
A.3.75
B.2.75
C.6.00
D.4.40
102.Comparative financial statements for Bent Stew Enterprises are shown below:
December 31
20142013
Assets
Current assets:
Cash$ 3,000 $ 800
Accounts receivable8,5006,000
Inventory12,0008,200
Prepaid expenses 1,400 900
Total current assets24,90015,900
Property, plant, and equipment, net 103,600 123,300
Intangible assets, net 64,000 47,000
Total assets$192,500 $186,200
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable$ 11,000 $ 12,000
Other current liabilities 11,800 3,200
Total current liabilities22,800 15,200
Long-term debt 120,000 128,000
Total liabilities 142,800 143,200
Stockholders’ equity:
Common stock15,00015,000
Additional paid-in capital20,000 20,000
Retained earnings 14,700 8,000
Total stockholders’ equity 49,700 43,000
Total liabilities and stockholders’ equity $192,500 $186,200
Year Ended December 31
20142013
Sales$250,000 $ 230,000
Cost of goods sold 164,000 142,300
Gross margin86,000 87,700
Operating expenses 64,000 54,000
Operating income22,000 33,700
Interest expense 7,500 5,900
Earnings before income taxes 14,500 27,800
Income taxes 7,800 7,140
Net earnings$ 6,700 $ 20,660
Using horizontal analysis, how much is the percentage change in cash for Bent Stew Enterprises from 2013 to 2014?
A.375.00% increase
B.73.33% increase
C.26.67% increase
D.275.00% increase
103.Comparative financial statements for Bent Stew Enterprises are shown below:
December 31
20142013
Assets
Current assets:
Cash$ 3,000 $ 800
Accounts receivable8,5006,000
Inventory12,0008,200
Prepaid expenses 1,400 900
Total current assets24,90015,900
Property, plant, and equipment, net 103,600 123,300
Intangible assets, net 64,000 47,000
Total assets$192,500 $186,200
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable$ 11,000 $ 12,000
Other current liabilities 11,800 3,200
Total current liabilities22,800 15,200
Long-term debt 120,000 128,000
Total liabilities 142,800 143,200
Stockholders’ equity:
Common stock15,00015,000
Additional paid-in capital20,000 20,000
Retained earnings 14,700 8,000
Total stockholders’ equity 49,700 43,000
Total liabilities and stockholders’ equity $192,500 $186,200
Year Ended December 31
20142013
Sales$250,000 $ 230,000
Cost of goods sold 164,000 142,300
Gross margin86,000 87,700
Operating expenses 64,000 54,000
Operating income22,000 33,700
Interest expense 7,500 5,900
Earnings before income taxes 14,500 27,800
Income taxes 7,800 7,140
Net earnings$ 6,700 $ 20,660
How much is the company’s gross margin percentage for 2014?
A.(1.98%)
B.34.40%
C.98.16%
D.7.80%
104.Comparative financial statements for Bent Stew Enterprises are shown below:
December 31
20142013
Assets
Current assets:
Cash$ 3,000 $ 800
Accounts receivable8,5006,000
Inventory12,0008,200
Prepaid expenses 1,400 900
Total current assets24,90015,900
Property, plant, and equipment, net 103,600 123,300
Intangible assets, net 64,000 47,000
Total assets$192,500 $186,200
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable$ 11,000 $ 12,000
Other current liabilities 11,800 3,200
Total current liabilities22,800 15,200
Long-term debt 120,000 128,000
Total liabilities 142,800 143,200
Stockholders’ equity:
Common stock15,00015,000
Additional paid-in capital20,000 20,000
Retained earnings 14,700 8,000
Total stockholders’ equity 49,700 43,000
Total liabilities and stockholders’ equity $192,500 $186,200
Year Ended December 31
20142013
Sales$250,000 $ 230,000
Cost of goods sold 164,000 142,300
Gross margin86,000 87,700
Operating expenses 64,000 54,000
Operating income22,000 33,700
Interest expense 7,500 5,900
Earnings before income taxes 14,500 27,800
Income taxes 7,800 7,140
Net earnings$ 6,700 $ 20,660
Bent Stew Enterprises had 10,000 shares of common stock outstanding during both 2013 and 2014. How much was earnings per share in 2014?
A.$0.15
B.$0.67
C.$1.49
D.$19.25
105.Comparative financial statements for Bent Stew Enterprises are shown below:
December 31
20142013
Assets
Current assets:
Cash$ 3,000 $ 800
Accounts receivable8,5006,000
Inventory12,0008,200
Prepaid expenses 1,400 900
Total current assets24,90015,900
Property, plant, and equipment, net 103,600 123,300
Intangible assets, net 64,000 47,000
Total assets$192,500 $186,200
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable$ 11,000 $ 12,000
Other current liabilities 11,800 3,200
Total current liabilities22,800 15,200
Long-term debt 120,000 128,000
Total liabilities 142,800 143,200
Stockholders’ equity:
Common stock15,00015,000
Additional paid-in capital20,000 20,000
Retained earnings 14,700 8,000
Total stockholders’ equity 49,700 43,000
Total liabilities and stockholders’ equity $192,500 $186,200
Year Ended December 31
20142013
Sales$250,000 $ 230,000
Cost of goods sold 164,000 142,300
Gross margin86,000 87,700
Operating expenses 64,000 54,000
Operating income22,000 33,700
Interest expense 7,500 5,900
Earnings before income taxes 14,500 27,800
Income taxes 7,800 7,140
Net earnings$ 6,700 $ 20,660
Using vertical analysis, how would you best describe the change in the company’s operating expenses from 2013 to 2014?
A.Operating expenses increased from 1.63% of net earnings to 9.55% of net earnings from 2013 to 2014.
B.Operating expenses increased by $10,000 from 2013 to 2014.
C.Operating expenses increased from 23.5% to 25.6% of sales from 2013 to 2014.
D.Operating expenses increased by 18.5% from 2013 to 2014.
106.Comparative financial statements for Bent Stew Enterprises are shown below:
December 31
20142013
Assets
Current assets:
Cash$ 3,000 $ 800
Accounts receivable8,5006,000
Inventory12,0008,200
Prepaid expenses 1,400 900
Total current assets24,90015,900
Property, plant, and equipment, net 103,600 123,300
Intangible assets, net 64,000 47,000
Total assets$192,500 $186,200
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable$ 11,000 $ 12,000
Other current liabilities 11,800 3,200
Total current liabilities22,800 15,200
Long-term debt 120,000 128,000
Total liabilities 142,800 143,200
Stockholders’ equity:
Common stock15,00015,000
Additional paid-in capital20,000 20,000
Retained earnings 14,700 8,000
Total stockholders’ equity 49,700 43,000
Total liabilities and stockholders’ equity $192,500 $186,200
Year Ended December 31
20142013
Sales$250,000 $ 230,000
Cost of goods sold 164,000 142,300
Gross margin86,000 87,700
Operating expenses 64,000 54,000
Operating income22,000 33,700
Interest expense 7,500 5,900
Earnings before income taxes 14,500 27,800
Income taxes 7,800 7,140
Net earnings$ 6,700 $ 20,660
Using horizontal analysis, how would you best describe the change in the company’s operating expenses from 2013 to 2014?
A.Operating expenses increased from 1.63% of net earnings to 9.55% of net earnings from 2013 to 2014.
B.Operating expenses increased by $10,000 from 2013 to 2014.
C.Operating expenses increased from 23.5% to 25.6% of sales from 2013 to 2014.
D.Operating expenses increased by 18.5% from 2013 to 2014.
107.Comparative financial statements for Bent Stew Enterprises are shown below:
December 31
20142013
Assets
Current assets:
Cash$ 3,000 $ 800
Accounts receivable8,5006,000
Inventory12,0008,200
Prepaid expenses 1,400 900
Total current assets24,90015,900
Property, plant, and equipment, net 103,600 123,300
Intangible assets, net 64,000 47,000
Total assets$192,500 $186,200
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable$ 11,000 $ 12,000
Other current liabilities 11,800 3,200
Total current liabilities22,800 15,200
Long-term debt 120,000 128,000
Total liabilities 142,800 143,200
Stockholders’ equity:
Common stock15,00015,000
Additional paid-in capital20,000 20,000
Retained earnings 14,700 8,000
Total stockholders’ equity 49,700 43,000
Total liabilities and stockholders’ equity $192,500 $186,200
Year Ended December 31
20142013
Sales$250,000 $ 230,000
Cost of goods sold 164,000 142,300
Gross margin86,000 87,700
Operating expenses 64,000 54,000
Operating income22,000 33,700
Interest expense 7,500 5,900
Earnings before income taxes 14,500 27,800
Income taxes 7,800 7,140
Net earnings$ 6,700 $ 20,660
What does vertical analysis for 2014 versus 2013 reveal for Bent Stew Enterprises?
A.There was no change in the proportion of common stock to total assets from 2013 to 2014.
B.Inventory levels have decreased from 2013 to 2014 in proportion to total assets.
C.Gross margin declined to 34.4% in 2014, down from 38.19% in 2013.
D.The company has a higher proportion of long-term debt in 2014 compared to 2013.
108.Comparative financial statements for Bent Stew Enterprises are shown below:
December 31
20142013
Assets
Current assets:
Cash$ 3,000 $ 800
Accounts receivable8,5006,000
Inventory12,0008,200
Prepaid expenses 1,400 900
Total current assets24,90015,900
Property, plant, and equipment, net 103,600 123,300
Intangible assets, net 64,000 47,000
Total assets$192,500 $186,200
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable$ 11,000 $ 12,000
Other current liabilities 11,800 3,200
Total current liabilities22,800 15,200
Long-term debt 120,000 128,000
Total liabilities 142,800 143,200
Stockholders’ equity:
Common stock15,00015,000
Additional paid-in capital20,000 20,000
Retained earnings 14,700 8,000
Total stockholders’ equity 49,700 43,000
Total liabilities and stockholders’ equity $192,500 $186,200
Year Ended December 31
20142013
Sales$250,000 $ 230,000
Cost of goods sold 164,000 142,300
Gross margin86,000 87,700
Operating expenses 64,000 54,000
Operating income22,000 33,700
Interest expense 7,500 5,900
Earnings before income taxes 14,500 27,800
Income taxes 7,800 7,140
Net earnings$ 6,700 $ 20,660
The company’s stock is selling for a market price of $31.00 per share at the end of 2014, up from $28.00 per share at the end of 2013. There are 5,000 shares of common stock outstanding at the end of 2014. How much is the company’s price-earnings ratio at the end of 2014?
A.$23.13
B.$1.34
C.$4.32
D.$41.55
109.Comparative financial statements for Bent Stew Enterprises are shown below:
December 31
20142013
Assets
Current assets:
Cash$ 3,000 $ 800
Accounts receivable8,5006,000
Inventory12,0008,200
Prepaid expenses 1,400 900
Total current assets24,90015,900
Property, plant, and equipment, net 103,600 123,300
Intangible assets, net 64,000 47,000
Total assets$192,500 $186,200
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable$ 11,000 $ 12,000
Other current liabilities 11,800 3,200
Total current liabilities22,800 15,200
Long-term debt 120,000 128,000
Total liabilities 142,800 143,200
Stockholders’ equity:
Common stock15,00015,000
Additional paid-in capital20,000 20,000
Retained earnings 14,700 8,000
Total stockholders’ equity 49,700 43,000
Total liabilities and stockholders’ equity $192,500 $186,200
Year Ended December 31
20142013
Sales$250,000 $ 230,000
Cost of goods sold 164,000 142,300
Gross margin86,000 87,700
Operating expenses 64,000 54,000
Operating income22,000 33,700
Interest expense 7,500 5,900
Earnings before income taxes 14,500 27,800
Income taxes 7,800 7,140
Net earnings$ 6,700 $ 20,660
How much is Bent Stew’s asset turnover in 2014?
A.1.034
B.0.027
C.0.770
D.1.299
110.Comparative financial statements for Bent Stew Enterprises are shown below:
December 31
20142013
Assets
Current assets:
Cash$ 3,000 $ 800
Accounts receivable8,5006,000
Inventory12,0008,200
Prepaid expenses 1,400 900
Total current assets24,90015,900
Property, plant, and equipment, net 103,600 123,300
Intangible assets, net 64,000 47,000
Total assets$192,500 $186,200
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable$ 11,000 $ 12,000
Other current liabilities 11,800 3,200
Total current liabilities22,800 15,200
Long-term debt 120,000 128,000
Total liabilities 142,800 143,200
Stockholders’ equity:
Common stock15,00015,000
Additional paid-in capital20,000 20,000
Retained earnings 14,700 8,000
Total stockholders’ equity 49,700 43,000
Total liabilities and stockholders’ equity $192,500 $186,200
Year Ended December 31
20142013
Sales$250,000 $ 230,000
Cost of goods sold 164,000 142,300
Gross margin86,000 87,700
Operating expenses 64,000 54,000
Operating income22,000 33,700
Interest expense 7,500 5,900
Earnings before income taxes 14,500 27,800
Income taxes 7,800 7,140
Net earnings$ 6,700 $ 20,660
How much is return on common stockholders’ equity for Bent Stew for 2014?
A.15.26%
B.44.67%
C.19.14%
D.13.48%
