Question :
11) Team Shirts had net income of $23,000. The balance : 1253387
11) Team Shirts had net income of $23,000. The balance sheet showed beginning and ending balances in shareholders’ equity of $100,000 and $110,000, respectively. There were no preferred shares and 20,000 common shares outstanding. Calculate the return on equity.
A) 21.9%
B) 1.15%
C) 5.25%
D) 4.56%
12) Romax Company had net income of $147,000. The balance sheet showed beginning and ending balances in shareholders’ equity of $750,000 and $790,000, respectively. There were 69,000 common shares outstanding and no preferred stock. Calculate return on equity.
A) 0.47%
B) 2.13%
C) 19.09%
D) 11.16%
13) Team Shirts had net income of $23,000. The balance sheet showed beginning and ending balances in shareholders’ equity of $100,000 and $110,000, respectively. There were no preferred shares and 20,000 common shares outstanding throughout the year. Calculate earnings per share.
A) $0.22
B) $1.15
C) $5.25
D) $4.56
14) Romax Company had net income of $147,000. The balance sheet showed beginning and ending balance in shareholders’ equity of $750,000 and $790,000, respectively. There were no preferred shares and 69,000 common shares outstanding throughout the year. Calculate earnings per share.
A) $0.47
B) $2.13
C) $0.19
D) $11.16
15) Use the following information obtained from the company’s computerized accounting information system to answer the question below. Note: There were no preferred shares outstanding and no additional shares were issued in 2011.
2011
2010
Net income
$ 20,000
$ 16,000
Total assets
$ 170,000
$ 150,000
Total liabilities
$ 94,000
$ 90,000
Total shareholders’ equity
$ 76,000
$ 60,000
Shares outstanding
10,000 shares
10,000 shares
Return on equity for 2011, rounded to the nearest tenth of a percent, equals ________.
A) 26.3%
B) 23.5%
C) 12.5%
D) 29.4%
16) Use the following information obtained from the company’s computerized accounting information system to answer the question(s) below. Note: There were no preferred shares outstanding and no additional shares were issued in 2011.
2011
2010
Net income
$ 20,000
$ 16,000
Total assets
$ 170,000
$ 150,000
Total liabilities
$ 94,000
$ 90,000
Total shareholders’ equity
$ 76,000
$ 60,000
Shares outstanding
10,000 shares
10,000 shares
Earnings per share for 2011 equals ________.
A) $20,000
B) $0.26 per share
C) $2.00 per share
D) $1.00 per share
17) Which of the following is the best measure of a company’s use of owners’ investments?
A) asset turnover
B) current assets
C) return on assets
D) return on equity
18) Argonaut Enterprises had 500,000 shares of common stock outstanding on January 1. On June 1, Argonaut issued an additional 60,000 common shares. Argonaut has no treasury stock. The weighted average number of common shares outstanding for the year was ________.
A) 500,000
B) 560,000
C) 530,000
D) 535,000
19) Argonaut Enterprises had 500,000 shares of common stock outstanding on January 1. On June 1, Argonaut issued an additional 60,000 common shares. Argonaut has no treasury stock. If Argonaut’s net income was $133,750 for the year, its earnings per share for the year was ________, rounded to the nearest cent.
A) $0.27
B) $0.24
C) $3.96
D) $0.25
20) Albatross Shipping had 100,000 shares of common stock outstanding on January 1. On September 1, Albatross issued an additional 30,000 common shares. Albatross has no treasury stock. The weighted average number of common shares outstanding for the year was ________.
A) 100,000
B) 130,000
C) 115,000
D) 110,000
