Question :
111. Langley Company reported the following its income statement:
Income before income : 1234277
111. Langley Company reported the following on its income statement:
Income before income taxes$420,000
Income tax expense 120,000
Net income$300,000
An analysis of the income statement revealed that interest expense was $80,000. Langley Company’s times interest earned was A. 8 times.B. 6.25 times.C. 5.25 times.D. 5 times.
112. The following information pertains to Tanzi Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.Assets
Cash and short-term investments $ 40,000
Accounts receivable (net) 30,000
Inventory 25,000
Property, plant and equipment 215,000
Total Assets$310,000
Liabilities and Stockholders’ Equity
Current liabilities $ 60,000
Long-term liabilities 95,000
Stockholders’ equity-common 155,000
Total Liabilities and stockholders’ equity$310,000
Income Statement
Sales $ 90,000
Cost of goods sold 45,000
Gross margin 45,000
Operating expenses 20,000
Net income$ 25,000
Number of shares of common stock6,000
Market price of common stock$20
What is the current ratio for this company? A. 1.42%B. .78%C. 1.58%D. .67%
113. Based on the following data, what is the amount of quick assets?
Accounts payable$ 30,000
Accounts receivable65,000
Accrued liabilities7,000
Cash25,000
Intangible assets40,000
Inventory72,000
Long-term investments100,000
Long-term liabilities75,000
Marketable securities36,000
Notes payable (short-term)20,000
Property, plant, and equipment625,000
Prepaid expenses2,000
A. $198,000B. $126,000C. $90,000D. $61,000
114. Based on the following data, what is the amount of working capital?
Accounts payable$ 30,000
Accounts receivable65,000
Accrued liabilities7,000
Cash25,000
Intangible assets40,000
Inventory72,000
Long-term investments100,000
Long-term liabilities75,000
Marketable securities36,000
Notes payable (short-term)20,000
Property, plant, and equipment625,000
Prepaid expenses2,000
A. $243,000B. $143,000C. $183,000D. $69,000
115. Based on the following data, what is the quick ratio, rounded to one decimal point?
Accounts payable$ 30,000
Accounts receivable65,000
Accrued liabilities7,000
Cash25,000
Intangible assets40,000
Inventory72,000
Long-term investments100,000
Long-term liabilities75,000
Marketable securities36,000
Notes payable (short-term)20,000
Property, plant, and equipment625,000
Prepaid expenses2,000
A. 2.2B. 3.5C. 3.0D. 1.6
116. The tendency of the rate earned on stockholders’ equity to vary disproportionately from the rate earned on total assets is sometimes referred to as A. leverageB. solvencyC. yieldD. quick assets
117. The balance sheets at the end of each of the first two years of operations indicate the following:
20062005
Total current assets$600,000$560,000
Total investments60,00040,000
Total property, plant, and equipment900,000700,000
Total current liabilities150,00080,000
Total long-term liabilities350,000250,000
Preferred 9% stock, $100 par100,000100,000
Common stock, $10 par600,000600,000
Paid-in capital in excess of par-common stock60,00060,000
Retained earnings325,000210,000
If net income is $115,000 and interest expense is $30,000 for 2006 what is the rate earned on total assets for 2006 (round percent to one decimal point)? A. 9.3%B. 10.1%C. 8.0%D. 7.4%
118. The balance sheets at the end of each of the first two years of operations indicate the following:
20062005
Total current assets$600,000$560,000
Total investments60,00040,000
Total property, plant, and equipment900,000700,000
Total current liabilities150,00080,000
Total long-term liabilities350,000250,000
Preferred 9% stock, $100 par100,000100,000
Common stock, $10 par600,000600,000
Paid-in capital in excess of par-common stock60,00060,000
Retained earnings325,000210,000
If net income is $115,000 and interest expense is $30,000 for 2006, what is the rate earned on stockholders’ equity for 2006 (round percent to one decimal point)? A. 10.6%B. 11.2%C. 12.4%D. 15.6%
119. The balance sheets at the end of each of the first two years of operations indicate the following:
20062005
Total current assets$600,000$560,000
Total investments60,00040,000
Total property, plant, and equipment900,000700,000
Total current liabilities150,00080,000
Total long-term liabilities350,000250,000
Preferred 9% stock, $100 par100,000100,000
Common stock, $10 par600,000600,000
Paid-in capital in excess of par-common stock60,00060,000
Retained earnings325,000210,000
If net income is $115,000 and interest expense is $30,000 for 2006, what are the earnings per share on common stock for 2006, (round to two decimal places)? A. $1.92B. $1.89C. $1.77D. $1.42
120. The balance sheets at the end of each of the first two years of operations indicate the following:
20062005
Total current assets$600,000$560,000
Total investments60,00040,000
Total property, plant, and equipment900,000700,000
Total current liabilities150,00080,000
Total long-term liabilities350,000250,000
Preferred 9% stock, $100 par100,000100,000
Common stock, $10 par600,000600,000
Paid-in capital in excess of par-common stock60,00060,000
Retained earnings325,000210,000
If net income is $115,000 and interest expense is $30,000 for 2006, and the market price is $30, What is the price-earnings ratio on common stock for 2006. (round to one decimal point)? A. 17.0B. 12.1C. 12.4D. 15.9
