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.
