Question : 124. A component of operating efficiency and profitability, calculated by expressing : 1257748

124. A component of operating efficiency and profitability, calculated by expressing net income as a percent of net sales, is the: A. Acid-test ratio.B. Merchandise turnover.C. Price earnings ratio.D. Accounts receivable turnover.E. Profit margin ratio.

125. One of several ratios that reflects solvency includes the: A. Acid-test ratio.B. Current ratio.C. Times interest earned ratio.D. Total asset turnover.E. Days’ sales in inventory.

126. A company had a market price of $27.50 per share, earnings per share of $1.25, and dividends per share of $0.40. Its price-earnings ratio equals: A. 3.1.B. 22.0.C. 93.8.D. 32.0.E. 3.3.

127. A company reports basic earnings per share of $3.50, cash dividends per share of $1.25, and a market price per share of $64.75. The company’s dividend yield equals: A. 1.93%.B. 2.14%.C. 4.67%.D. 5.41%.E. 18.50%.

128. Rajan Company’s most recent balance sheet reported total assets of $1.9 million, total liabilities of $0.8 million, and total equity of $1.1 million.  Its Debt to equity ratio is: A.0.42B.0.58C.1.38D. 0.73E.1.00

129. Desjardin Landscaping’s income statement reports net income of $75,300, which includes deductions for interest expense of $11,500 and income taxes of $34,900.  Its times interest earned is: A. 10.6 timesB. 7.5 timesC. 4.0 timesD. 6.5 timesE. 0.15 times

130. Selected current year company information follows:  

Net income …………………..

$15,953

Net sales…………………….

712,855

Total liabilities, beginning-year……….

83,932

Total liabilities, end-of-year………….

103,201

Total stockholders’ equity, beginning-year…..

198,935

Total stockholders’ equity, end-of-year……

121,851

The total asset turnover is: A. 2.24 timesB. 2.81 timesC. 3.64 timesD. 4.67 timesE. 6.28 times

131. Selected current year company information follows:

Net income …………………..

$15,953

Net sales…………………….

712,855

Total liabilities, beginning-year……….

83,932

Total liabilities, end-of-year………….

103,201

Total stockholders’ equity, beginning-year……

198,935

Total stockholders’ equity, end-of-year……

121,851

The return on total assets is: A. 2.24%B. 2.81%C. 3.64%D. 4.67%E. 6.28%

132. All of the following statements regarding a business segment are true except: A. A business segment is a part of a company’s operations that serves a particular product line.B. A segment has assets, liabilities, and financial results of operations that can be distinguished from those of other parts of the company.C. A company’s gain or loss from selling or closing down a segment is reported separately.D. The income tax effects of a discontinued segment are combined with income tax from continuing operations.E. A segment’s income for the period prior to the disposal and the gain or loss resulting from disposing of the segment’s assets are reported separately.

133. Use the following selected information from Wheeler, LLC to determine the 2015 and 2014 common size percentages for cost of goods sold using Net sales as the base. 

2015

2014

Net sales

$276,200

$231,400

Cost of goods sold

151,900

129,590

Operating expenses

55,240

53,240

Net earnings

27,820

19,820

A. 36.4% for 2015 and 41.1% for 2014.B. 55.0% for 2015 and 56.0% for 2014.C. 119.4% for 2015 and 100.0% for 2014.D. 117.2% for 2015 and 100.0% for 2014.E. 65.1% for 2015 and 56.0% for 2014.