Question : 51. Everett, Inc.Information for Everett, Inc. for 2011 and 2010 presented : 1224942

 

 

51. Everett, Inc.Information for Everett, Inc. for 2011 and 2010 is presented below. Everett uses the straight-line depreciation method. 

 

2011

2010

Fixed assets

$   250,000

$190,000

Accumulated depreciation

100,000

85,000

Depreciation expense

62,500

47,500

Total revenues

525,000

405,000

Total assets

625,000

475,000

 

 

 

Refer to the information provided for Everett, Inc. Using the data for 2011, determine the average useful life of Everett’s fixed assets rounded to one decimal place. A. 1.60 yearsB. 3.50 yearsC. 4.00 yearsD. 10.00 years

 

52. Everett, Inc.Information for Everett, Inc. for 2011 and 2010 is presented below. Everett uses the straight-line depreciation method. 

 

2011

2010

Fixed assets

$   250,000

$190,000

Accumulated depreciation

100,000

85,000

Depreciation expense

62,500

47,500

Total revenues

525,000

405,000

Total assets

625,000

475,000

 

 

 

Refer to the information provided for Everett, Inc. Using the data for 2011, determine the average age of Everett’s fixed assets. A. 1.60 yearsB. 3.50 yearsC. 4.00 yearsD. 10.00 years

 

53. Everett, Inc.Information for Everett, Inc. for 2011 and 2010 is presented below. Everett uses the straight-line depreciation method. 

 

2011

2010

Fixed assets

$   250,000

$190,000

Accumulated depreciation

100,000

85,000

Depreciation expense

62,500

47,500

Total revenues

525,000

405,000

Total assets

625,000

475,000

 

 

 

Refer to the information provided for Everett, Inc. Determine the fixed asset turnover ratio for Everett for 2011. A. 2.10 timesB. 1.60 timesC. 4.00 timesD. 2.39 times

 

54. If a company’s fixed asset turnover ratio decreased from 2010 to 2011, which of the following conclusions can be made? A. The company was more efficient during 2011 in using its fixed assets to produce profitsB. The company produced less sales in 2011 for each dollar invested in fixed assets compare to 2010.C. The company was less profitable in 2010.D. The company over invested in fixed assets in 2010.

 

55. Max’s Tire Center CompanySelected data from the financial statements of Max’s Tire Center are provided below. 

 

2012

2011

Fixed assets

$  150,000

$  138,000

Depreciation expense

45,000

42,000

Total assets

500,000

490,000

Cash flow from operations

320,000

289,000

Net sales

370,000

360,000

Capital expenditures

15,000

13,000

 

 

 

Refer to the selected data provided for Max’s Tire Center. Which of the following would result from a horizontal analysis of Max’s balance sheet? A. Fixed assets increased by $12,000 or 8.7% during 2012.B. Fixed assets increased by $12,000 or 7.8% during 2012.C. Fixed assets is 30.0% of total assets in 2012.D. The total assets is $500,000 in 2012.

 

56. Refer to the selected data provided for Max’s Tire Center. Which of the following would result from a horizontal analysis of Max’s income statement? A. Depreciation expense increased by $3,000 or 6.67% during 2012.B. Depreciation expense increased by $3,000 or 7.14% during 2012.C. Net sales is $370,000 in 2012.D. The total assets is $500,000 in 2012.

 

57. Refer to the selected data provided for Max’s Tire Center. Which of the following would result from a vertical analysis of Max’s balance sheet in 2012? A. Fixed assets increased $12,000 or 7.14% during 2012.B. Total assets is $500,000 in 2012.C. Fixed assets  is 27.6% of total assets in 2012.D. Fixed assets is 30% of total assets in 2012.

 

58. Refer to the selected data provided for Max’s Tire Center. Which of the following would result from a vertical analysis of Max’s income statement in 2012? A. Depreciation expense increased $3,000 or 7.14% during 2012.B. Depreciation expense is $45,000 in 2012.C. Depreciation expense is 12.16% of total assets in 2012.D. Depreciation expense is 12.16% of total sales in 2012.

 

59. Refer to the selected data provided for Max’s Tire Center. What is Max’s fixed assets turnover in 2012? A. The fixed assets turnover is 2.75 in 2012.B. The fixed assets turnover is 2.68 in 2012.C. The fixed assets turnover is 2.36 in 2012.D. The fixed assets turnover is 2.57 in 2012.

 

60. Cash paid to purchase significant amounts of fixed assets would be reported in the statement of cash flows in:  A. the cash flows from operating activities section.B. the cash flows from financing activities section.C. the cash flows from investing activities section.D. a separate schedule.

 

 

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