Question :
137.The following financial statement information available for Houser Corporation:
2013 : 1312002
137.The following financial statement information is available for Houser Corporation:
2013 2012
Inventory$ 44,000$ 43,000
Current assets81,000106,000
Total assets432,000358,000
Current liabilities30,00036,000
Total liabilities102,00088,000
The current ratio for 2013 is
a..37:1.
b.2.7:1.
c..79:1.
d.4.24:1.
138.The following financial statement information is available for Jones Corporation:
2013 2012
Net sales$784,000$697,000
Cost of goods sold406,000377,000
Net income112,00080,000
Tax expense48,00029,000
Interest expense14,00014,000
The profit margin ratio for 2013 is
a.14.3%.
b.16.1%.
c.48.2%.
d.11.7%.
139.The following financial statement information is available for Henn Corporation:
2013 2012
Stockholders’ equity – common$330,000$270,000
Net sales784,000697,000
Cost of goods sold406,000377,000
Net income112,00080,000
Inc tax expense48,00029,000
Interest expense14,00014,000
Dividends paid to preferred
stockholders22,00020,000
Dividends paid to common
stockholders15,00010,000
The return on common stockholders’ equity for 2013 is
a.25.0%.
b.37.3%.
c.27.3%.
d.30.0%.
140.The following financial statement information is available for Bongo Corporation:
2013 2012
Net income$115,000$ 80,000
Income tax expense50,00029,000
Interest expense15,00014,000
Dividends paid to preferred
stockholders22,00020,000
Dividends paid to preferred
stockholders15,00010,000
The times interest earned for 2013 is
a.8.8 times.
b.7.7 times.
c.12 times.
d.11 times.
141.Dean Corporation reported net income $48,000, net sales $400,000, and average assets $800,000 for 2013. The 2013 profit margin was:
a.6%.
b.12%.
c.50%.
d.200%.
142.Goin Company reports the following amounts for 2013:
Net income$ 150,000
Average stockholders’ equity2,000,000
Preferred dividends48,000
Par value preferred stock200,000
The 2013 rate of return on common stockholders’ equity is:
a.5.1%.
b.5.7%.
c.7.5%.
d.8.3%.
143.Gamble Corporation had beginning inventory $100,000, cost of goods purchased $700,000, and ending inventory $140,000. What was Gamble’s inventory turnover?
a.5 times.
b.5.5 times.
c.5.83 times.
d.6.6 times.
144.In 2013 Shum Corporation reported income from operations $180,000, interest expense $50,000, and income tax expense $40,000. Shum’s times interest earned ratio was:
a.5.4 times.
b.4.6 times.
c.4.4 times.
d.3.6 times.
145.Reynolds Company has income before taxes of $360,000 and an extraordinary loss of $80,000. If the income tax rate is 30% on all items, the income statement should show income before irregular items and an extraordinary loss, respectively, of:
a.$360,000 and ($80,000)
b.$252,000 and ($24,000)
c.$252,000 and ($56,000)
d.$108,000 and ($24,000)
146.All of the following statements regarding changes in accounting principles are true except:
a.Most changes in accounting principles are only reported in current periods when the principle change takes place.
b.Changes in accounting principles are allowed when new principles are preferable to old ones.
c.Most changes in accounting principles are retroactively reported.
d.Consistency is one of the biggest concerns when a change in accounting principle is undertaken.
