Question :
51. Max’s Tire Center CompanySelected data from the financial statements of : 1224915
51. Max’s Tire Center CompanySelected data from the financial statements of Max’s Tire Center are provided below.
2012
2011
Net accounts receivable
$ 55,500
$ 43,200
Allowance for bad debts
2,220
1,700
Total assets
462,500
720,000
Cash flow from operations
314,500
316,800
Net sales
370,000
360,000
Cost of goods sold
185,000
190,000
Capital expenditures
50,000
25,000
Refer to the selected data provided for Max’s Tire Center. What is Max’s receivables turnover ratio in 2012? A. The receivables turnover is 7.79 in 2012.B. The receivables turnover is 6.67 in 2012.C. The receivables turnover is 8.56 in 2012.D. The receivables turnover is 7.21 in 2012.
52. Max’s Tire Center CompanySelected data from the financial statements of Max’s Tire Center are provided below.
2012
2011
Net accounts receivable
$ 55,500
$ 43,200
Allowance for bad debts
2,220
1,700
Total assets
462,500
720,000
Cash flow from operations
314,500
316,800
Net sales
370,000
360,000
Cost of goods sold
185,000
190,000
Capital expenditures
50,000
25,000
Refer to the selected data provided for Max’s Tire Center. What is Max’s days-in-receivables ratio in 2012? A. The days-in-receivables ratio is 50.62 in 2012.B. The days-in-receivables ratio is 54.75 in 2012.C. The days-in-receivables ratio is 42.62 in 2012.D. The days-in-receivables ratio is 60.04 in 2012.
53. Max’s Tire Center CompanySelected data from the financial statements of Max’s Tire Center are provided below.
2012
2011
Net accounts receivable
$ 55,500
$ 43,200
Allowance for bad debts
2,220
1,700
Total assets
462,500
720,000
Cash flow from operations
314,500
316,800
Net sales
370,000
360,000
Cost of goods sold
185,000
190,000
Capital expenditures
50,000
25,000
Refer to the selected data provided for Max’s Tire Center. What is Max’s allowance ratio in 2012? A. The allowance ratio is 3.29% in 2012.B. The allowance ratio is 3.85% in 2012.C. The allowance ratio is 4.89% in 2012.D. The allowance ratio is 2.97% in 2012.
54. Receivables turnover ratio measures: A. a company’s ability to collect its accounts receivables.B. a comparison of allowance account to receivables.C. the fair market value of accounts receivable.D. the efficiency of the accounts payable function.
55. The days-in-receivables ratio: A. is an estimate of the length of time the receivables have been outstanding.B. measures the cash discount period for credit sales.C. is net credit sales divided by average receivables.D. is not meaningful and therefore is not used.
56. The party to a promissory note who will pay the interest and principal is called the: A. lender.B. maker of the note.C. payee of the note.D. recipient of the note.
57. How will the payee of the promissory note record the note on its books? A. The promissory note will be recorded as an assetB. The promissory note will be recorded as a liabilityC. The promissory note will be recorded as an equityD. The promissory note will be recorded as an expense
58. The total amount of interest for one year calculated annually on a $18,000 promissory note payable for 3 years at 11% is: A. $1,980.B. $5,940.C. $3,960.D. $990.
59. Nadal CompanyOn October 1, 2012, Nadal Company received a $50,000 promissory note from Borg Company. The annual interest rate is 6%. Principal and interest will be collected in cash at the maturity date of September 30, 2013. Refer to the information provided for Nadal Company. An adjusting entry for Nadal’s year end, December 31, 2012 needed to: A. increase interest revenue by $2,250B. increase notes receivable by $750C. increase interest receivable by $750D. increase notes receivable by $2,250
60. Nadal CompanyOn October 1, 2012, Nadal Company received a $50,000 promissory note from Borg Company. The annual interest rate is 6%. Principal and interest will be collected in cash at the maturity date of September 30, 2013. Refer to the information provided for Nadal Company. The effect on Nadal’s financial statements on September 30, 2013, is as follows: A. Assets and equity increaseB. No net change in equityC. Assets and liabilities increaseD. No net change in assets
