Question : 61) Refer to the Acme annual report above. Calculate the : 1253043

 

 

61) Refer to the Acme annual report above. Calculate the accounts receivable turnover ratio for 2012.

A) 11.0 times

B) 6.0 times

C) 8.8 times

D) The answer cannot be determined from the information given.

62) Refer to the Acme annual report above. Which of the following statements is TRUE about the accounts receivable turnover ratios for 2011 and 2012?

A) The ratio is higher in 2012. This means management is doing a better job of collecting accounts receivable in 2012.

B) The ratio is higher in 2012. This means management is doing a worse job of collecting accounts receivable in 2012.

C) The ratio is lower in 2012. This means management is doing a better job of collecting accounts receivable in 2012.

D) The ratio is lower in 2012. This means management is doing a worse job of collecting accounts receivable in 2012.

 

The following selected information is from Acme’s annual report for the years ended December 31:

 

  2012      2011      2010 

Sales $   44,000$  29,300$  23,200

Cost of goods sold24,00015,00012,000

Operating expenses7,0006,0005,000

Interest expense   1,000       300       200

Net income$  12,000$   8,000$   6,000

Cash$  2,500$  2,000$  1,000

Accounts receivable  5,000  3,000  2,000

Inventory9,0005,0003,000

Property, plant & equipment30,00016,00010,000

Total assets$  46,500$  26,000$  16,000

63) Refer to the Acme annual report above. Calculate return on assets for 2010.

A) 37.5%

B) 145%

C) 60%

D) The answer cannot be determined from the information given.

 

64) Refer to the Acme annual report above. Calculate return on assets for 2011.

A) 28.6%

B) 38.1%

C) 51.9%

D) The answer cannot be determined from the information given.

65) Refer to the Acme annual report above. Calculate return on assets for 2012.

A) 33.1%

B) 38.1%

C) 22.1%

D) The answer cannot be determined from the information given.

 

66) Refer to the Acme annual report above. Which of the following statements is TRUE about the return on assets for 2011 and 2012?

A) Return on assets increased in 2012 because the company made a large investment in additional property, plant & equipment in 2012.

B) Return on assets increased in 2012 because net income is 50% higher in 2012 than in 2011, while property, plant and equipment increased 87.5%.

C) Return on assets decreased in 2012 because the large investment in additional property, plant & equipment did not generate enough additional operating income.

D) Return on assets decreased in 2012 because net income for 2012 is much larger than in 2011.

 

The following selected information is from Acme’s annual report for the years ended December 31:

 

  2012      2011      2010 

Sales $   44,000$  29,300$  23,200

Interest expense1,000300200

Net income12,0008,0006,000

Total assets46,50026,00016,000

 

67) Refer to the Acme annual report above. Calculate the asset turnover ratio for 2010.

A) 1.45 times

B) 0.375 times

C) 1.10 times

D) The answer cannot be determined from the information given.

 

68) Refer to the Acme annual report above. Calculate the asset turnover ratio for 2011.

A) 1.1 times

B) 0.375 times

C) 1.4 times

D) The answer cannot be determined from the information given.

69) Refer to the Acme annual report above. Calculate the asset turnover ratio for 2012.

A) 1.2 times

B) 0.9 times

C) 1.4 times

D) The answer cannot be determined from the information given.

 

70) Refer to the Acme annual report above. Which of the following statements is TRUE about the asset turnover ratio for 2011 and 2012?

A) The asset turnover ratio decreased in 2012 because management was using the company’s assets less efficiently.

B) The asset turnover ratio decreased in 2012 because management was using the company’s assets more efficiently.

C) The asset turnover ratio increased in 2012 because management was using the company’s assets less efficiently.

D) The asset turnover ratio increased in 2012 because management was using the company’s assets more efficiently.