Question :
144. Refer to the following selected financial information from Frankle Corp. : 1257750
144. Refer to the following selected financial information from Frankle Corp. Compute the company’s working capital.
Current Assets
306,450
Plant assets
338,000
Current Liabilities
107,800
Net sales
676,000
Net Income
75,000
A. $536,650.B. $230,200.C. $568,200.D. $198,650.E. $231,450.
145. Refer to the following selected financial information from Frankle Corp. Compute the company’s current ratio.
Current assets
306,450
Plant assets
388,000
Current Liabilities
107,800
Net sales
676,000
Net Income
75,000
A. 6.44.B. 2.84.C. 6.27.D. 3.60.E. 1.44.
146. Refer to the following selected financial information from Dodge Company. Compute the company’s acid-test ratio.
Cash
$42,250
Short-term investments
60,000
Accounts receivable, net
79,500
Merchandise inventory
115,000
Prepaid expenses
9,700
Accounts payable
111,400
A. 2.75.B. 2.66.C. 0.92.D. 1.12.E. 1.63.
147. Refer to the following selected financial information from MarstonCompany. Compute the company’s accounts receivable turnover for Year 2.
Year 2
Year 1
Accounts receivable, net
86,500
82,750
Net sales
723,000
693,000
A. 8.36.B. 8.37.C. 4.78.D. 8.59.E. 8.54.
148. Refer to the following selected financial information from Marston Company. Compute the company’s days’ sales uncollected for Year 2.
Year 2
Year 1
Accounts receivable, net
86,500
82,750
Net sales
723,000
693,000
A. 43.9.B. 43.7.C. 46.2.D. 85.4.E. 42.7.
149. Refer to the following selected financial information from Graceworks Corp. Compute the company’s inventory turnover for Year 2.
Year 2
Year 1
Merchandise inventory
271,000
253,500
Cost of goods sold
486,400
433,100
A. 1.79.B. 1.71.C. 1.85.D. 0.93.E. 1.75.
150. Refer to the following selected financial information from Graceworks, Corp. Compute the company’s days’ sales in inventory for Year 2.
Year 2
Year 1
Merchandise inventory
271,000
253,500
Cost of goods sold
486,400
433,100
A. 203.4.B. 228.4.C. 179.5.D. 215.1.E. 113.3.
151. Refer to the following selected financial information from Shakley’s Incorporated. Compute the company’s profit margin for Year 2.
Year 2
Year 1
Net sales
$478,500
$426,250
Cost of goods sold
276,300
250,120
Interest expense
9,700
10,700
Net income before tax
67,250
52,680
Net income after tax
46,050
39,900
Total assets
317,100
288,000
Total liabilities
181,400
167,300
Total equity
135,700
120,700
A. 14.1%.B. 11.7%.C. 9.6%.D. 16.7%.E. 33.9%.
152. Refer to the following selected financial information from Shakley’s Incorporated. Compute the company’s return on total assets for Year 2.
Year 2
Year 1
Net sales
$478,500
$426,250
Cost of goods sold
276,300
250,120
Interest expense
9,700
10,700
Net income before tax
67,250
52,680
Net income after tax
46,050
39,900
Total assets
317,100
288,000
Total liabilities
181,400
167,300
Total equity
135,700
120,700
A. 9.6%.B. 15.2%.C. 2.6%.D. 22.2%.E. 14.5%.
153. Refer to the following selected financial information from Shakley’s Incorporated. Compute the company’s debt-to-equity ratio for Year 2.
Year 2
Year 1
Net sales
$478,500
$426,250
Cost of goods sold
276,300
250,120
Interest expense
9,700
10,700
Net income before tax
67,250
52,680
Net income after tax
46,050
39,900
Total assets
317,100
288,000
Total liabilities
181,400
167,300
Total equity
135,700
120,700
A. 1.75.B. 2.34. C. 0.75.D. 1.34.E. 2.63.
154. Refer to the following selected financial information from Shakley’s Incorporated. Compute the company’s times interest earned for Year 2.
Year 2
Year 1
Net sales
$478,500
$426,250
Cost of goods sold
276,300
250,120
Interest expense
9,700
10,700
Net income before tax
67,250
52,680
Net income after tax
46,050
39,900
Total assets
317,100
288,000
Total liabilities
181,400
167,300
Total equity
135,700
120,700
A. 6.9.B. 4.8. C. 5.8.D. 14.0.E. 7.9.
155. Refer to the following selected financial information from Graphics, Inc. Compute the company’s times interest earned.
Interest expense
9,100
Income tax expense
22,700
Net income after tax
56,500
A. 6.2.B. 2.5. C. 8.7.D. 9.7.E. 3.7.
156. Refer to the following selected financial information from Keller Company. Compute the company’s debt to equity for Year 2.
Year 2
Year 1
Total assets
327,800
301,000
Total liabilities
171,400
169,300
Total equity
156,400
131,700
A. 0.9.B. 1.1. C. 0.5.D. 1.9.E. 2.1.
