Question : 91. Which of the following accounts doesn’t have a credit balance? A. Gain : 1228488

91. Which of the following accounts doesn’t have a credit balance? 
A. Gain on sale of land
B. Investment income
C. Unearned revenues
D. Rent expense

92. On January 1, 2011 Gucci Brothers Inc. had a $500,000 credit balance in retained earnings and $600,000 balance in contributed capital. During 2011, the company earned net income of $100,000, declared a dividend of $15,000, and issued additional stock for $25,000. What is total stockholders’ equity on December 31, 2011? 
A. $1,100,000
B. $1,210,000
C. $1,225,000
D. $1,240,000

93. On January 1, 2010, Denmark Inc., started the year with a $200,000 credit balance in its retained earnings account. During 2010, the company earned net income of $70,000 and declared and paid dividends of $10,000. Also, the company received cash of $15,000 as an additional investment by its owners. What is the balance in retained earnings on December 31, 2010? 
A. $200,000
B. $270,000
C. $245,000
D. $260,000

94. Blazon Corporation’s retained earnings increased $79,000 during 2011. Blazon declared $19,000 of dividends and paid $15,000 of the dividends declared during 2011. How much was Blazon’s 2011 net income assuming that Blazon’s stockholders invested an additional $30,000 during 2011? 
A. $98,000
B. $94,000
C. $68,000
D. $64,000

2011 net income = $98,000 = $79,000 + $19,000 The change in retained earnings equals net income ($98,000) minus dividends declared ($19,000).

95. Beemer Corporation has provided the following information pertaining to the year ended December 31, 2011:
? Stockholders’ equity as of January 1 was $789,000.
? Dividends declared during the year totaled $71,000 of which $60,000 were paid during the year.
? Stockholders invested $113,000 cash into the business in exchange for new shares of stock.
? Stockholders’ equity as of December 31 was $1,030,000.
How much was Beemer’s 2011 net income? 
A. $210,000
B. $199,000
C. $312,000
D. $323,000

96. Which of the following transactions would not be reported as cash flow from operations on a cash flow statement? 
A. Cash collected from customers
B. Cash paid to suppliers
C. Cash paid for employee wages
D. Cash paid for dividends

97. Which of the following transactions would be reported as cash flow from operations on a cash flow statement? 
A. Cash paid to purchase equipment
B. Cash paid to acquire land
C. Cash paid for interest
D. Cash paid for rent

98. Garret Company has provided the following selected information for the year ended December 31, 2011:
? Cash collected from customers was $783,000.
? Cash received from stockholders in exchange for stock totaled $91,000.
? Cash paid to suppliers was $361,000.
? Cash paid to employees was $204,000.
? Cash to stockholders for dividends was $33,000.
? Cash received from sale of a building was $250,000.
? Cash paid for rent was $39,000.
? Cash received for interest and dividends was $7,000.
? Cash paid for income taxes was $55,000.
Based on the selected information provided, how much was Garret’s cash flow from operations? 
A. $131,000
B. $98,000
C. $381,000
D. $222,000

99. Which of the following statements is inaccurate with respect to the total asset turnover ratio? 
A. It is calculated as sales revenues divided by total assets at year-end.
B. It is decreased when additional plant and equipment is purchased.
C. A high ratio implies efficient management of assets.
D. It is decreased when additional inventory is purchased.

100. Top Company’s 2011 sales revenue was $200,000 and 2010 sales revenue was $180,000. Top’s total assets as of December 31, 2011 were $150,000 and total assets as of January 1, 2011 were $130,000. What is Top’s total asset turnover ratio? 
A. 1.48
B. 1.33
C. 1.36
D. 1.43