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.