Question :
61. Bloom’s Garden Center CompanySelected data from the financial statements of : 1224845
61. Bloom’s Garden Center CompanySelected data from the financial statements of Bloom’s Garden Center Company are provided below.
2012
2011
Accounts receivable
$ 71,000
$ 48,000
Inventory
22,000
26,000
Total assets
530,000
460,000
Net sales
450,000
340,000
Cost of goods sold
240,000
290,000
Refer to the selected data provided for Bloom’s Garden Center Company. Which of the following would result from a horizontal analysis of Bloom’s balance sheet? A. Accounts receivable increased by $23,000 or 47.92% during 2012.B. Accounts receivable is five times larger than inventory in 2012.C. Accounts receivable is 13.39% of total assets in 2012.D. The accounts receivable turnover ratio is 7.56 in 2012.
62. Bloom’s Garden Center CompanySelected data from the financial statements of Bloom’s Garden Center Company are provided below.
2012
2011
Accounts receivable
$ 71,000
$ 48,000
Inventory
22,000
26,000
Total assets
530,000
460,000
Net sales
450,000
340,000
Cost of goods sold
240,000
290,000
Refer to the selected data provided for Bloom’s Garden Center Company. Which of the following would result from a horizontal analysis of Bloom’s income statement? A. Net sales increased by $110,000 during 2012, or 32.35% of the 2011 amount.B. Gross profit is 46.67% of net sales for 2012.C. Accounts receivable is 13.39% of total assets in 2012.D. The accounts receivable turnover ratio is 7.56 in 2012.
63. Bloom’s Garden Center CompanySelected data from the financial statements of Bloom’s Garden Center Company are provided below.
2012
2011
Accounts receivable
$ 71,000
$ 48,000
Inventory
22,000
26,000
Total assets
530,000
460,000
Net sales
450,000
340,000
Cost of goods sold
240,000
290,000
Refer to the selected data provided for Bloom’s Garden Center Company. Which of the following would result from a horizontal analysis of Bloom’s income statement? A. Cost of goods sold is 53.33% of net sales for 2012.B. Gross profit is 46.67% of net sales for 2012.C. Cost of goods sold decreased by $50,000 or 17.24% during 2012.D. Inventory decreased by $6,000 or 20% during 2011.
64. Bloom’s Garden Center CompanySelected data from the financial statements of Bloom’s Garden Center Company are provided below.
2012
2011
Accounts receivable
$ 71,000
$ 48,000
Inventory
22,000
26,000
Total assets
530,000
460,000
Net sales
450,000
340,000
Cost of goods sold
240,000
290,000
Refer to the selected data provided for Bloom’s Garden Center Company. Which of the following would result from a vertical analysis of Bloom’s income statement? A. The accounts receivable turnover ratio is 7.56 in 2012.B. Gross profit is 46.67% of net sales for 2012.C. Cost of goods sold decreased by $50,000 or 17.24% during 2012.D. Net sales is 84.91% of total assets for 2012.
65. Bloom’s Garden Center CompanySelected data from the financial statements of Bloom’s Garden Center Company are provided below.
2012
2011
Accounts receivable
$ 71,000
$ 48,000
Inventory
22,000
26,000
Total assets
530,000
460,000
Net sales
450,000
340,000
Cost of goods sold
240,000
290,000
Refer to the selected data provided for Bloom’s Garden Center Company. Which of the following would be found through ratio analysis of Bloom’s financial statements? A. The receivable turnover ratio is 7.56 in 2012.B. Cost of goods sold increased by $50,000 or 17.24% in 2012.C. Accounts receivable increased by $23,000 during 2012.D. Total assets increased by 15.22% during 2012.
66. Nue CompanyInformation from Nue Company’s financial statements is provided below.
2012
2011
Current liabilities
$230,000
$160,000
Long-term liabilities
120,000
320,000
Stockholders’ equity
420,000
540,000
Net cash flows from operating activities
80,000
51,000
Interest and principal payments
12,000
8,000
Net sales
475,000
450,000
Net income
90,000
72,000
Interest expense
8,500
11,500
Income taxes
16,000
14,500
Dividends paid to common stockholders
15,000
30,000
Refer to the information provided for Nue Company. The debt to equity ratio for 2012 is: A. an indicator that Nue Company’s ability to meet current interest payments to creditors is increasing.B. increasing slightly from 2011 to 2012.C. an indicator that for every $1 of capital that has been provided by stockholders, creditors provided $0.83.D. an indicator that Nue Company’s reliance on stockholders for funding decreased from 2011 to 2012.
67. Nue CompanyInformation from Nue Company’s financial statements is provided below.
2012
2011
Current liabilities
$230,000
$160,000
Long-term liabilities
120,000
320,000
Stockholders’ equity
420,000
540,000
Net cash flows from operating activities
80,000
51,000
Interest and principal payments
12,000
8,000
Net sales
475,000
450,000
Net income
90,000
72,000
Interest expense
8,500
11,500
Income taxes
16,000
14,500
Dividends paid to common stockholders
15,000
30,000
Refer to the information provided for Nue Company. The times interest earned ratio for 2012: A. increased, which indicates that the company’s creditors will be pleased.B. decreased, which indicates that the company has less cash to pay interest on its debt.C. indicates a decline in the company’s ability to pay its liabilities when they come due.D. indicates that the company cannot meet its current year interest payments out of current year earnings.
68. Nue CompanyInformation from Nue Company’s financial statements is provided below.
2012
2011
Current liabilities
$230,000
$160,000
Long-term liabilities
120,000
320,000
Stockholders’ equity
420,000
540,000
Net cash flows from operating activities
80,000
51,000
Interest and principal payments
12,000
8,000
Net sales
475,000
450,000
Net income
90,000
72,000
Interest expense
8,500
11,500
Income taxes
16,000
14,500
Dividends paid to common stockholders
15,000
30,000
Refer to the information provided for Nue Company. The net profit margin percentage for 2012 is: A. 14.32%B. 16.00%C. 18.95%D. 24.11%
69. Nue CompanyInformation from Nue Company’s financial statements is provided below.
2012
2011
Current liabilities
$230,000
$160,000
Long-term liabilities
120,000
320,000
Stockholders’ equity
420,000
540,000
Net cash flows from operating activities
80,000
51,000
Interest and principal payments
12,000
8,000
Net sales
475,000
450,000
Net income
90,000
72,000
Interest expense
8,500
11,500
Income taxes
16,000
14,500
Dividends paid to common stockholders
15,000
30,000
Refer to the information provided for Nue Company. Return on equity for 2012 is: A. 18.75%B. 21.43%C. 23.85%D. 27.26%
70. Nue CompanyInformation from Nue Company’s financial statements is provided below.
2012
2011
Current liabilities
$230,000
$160,000
Long-term liabilities
120,000
320,000
Stockholders’ equity
420,000
540,000
Net cash flows from operating activities
80,000
51,000
Interest and principal payments
12,000
8,000
Net sales
475,000
450,000
Net income
90,000
72,000
Interest expense
8,500
11,500
Income taxes
16,000
14,500
Dividends paid to common stockholders
15,000
30,000
Refer to the information provided for Nue Company. Which of the following statements is true concerning Nue’s debt management activities? A. The company has a smaller percentage of capital from stockholders at the end of 2012 than at the end of 2011.B. The company relied more on creditors for financing during 2012 than in 2011.C. Nue Company improved its debt to equity ratio.D. Relative to 2011, Nue Company is in a weaker position at the end of 2012 to finance capital expenditures from cash flow generated by operating activities.
71. The ability of a business to pay its debts as they come due and to earn a reasonable amount of income is referred to as: A. solvency and leverage.B. solvency and profitability.C. solvency and liquidity.D. solvency and equity.
