Here is 20 questions-Accounting


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Here is 20 questions-Accounting The Impact of MD and other topics.pdf Quesfions I to 20: Select the best answer to each question. Note that a question and its answers may be split across a page brealr, so be sure that you have seen the entire question and, all the answers before choosing an answer. L. Centerville Company’s debt-to-equity ratio is 0.60 Total assets are $320,000, current assets are $170,000, and working capital is $80,000. Centerville’s long-term liabilities must be A. $30,000. B. $90,000. c. $80,000. D. $120,000. Use the following information to answer this question. The most recent balance sheet and income statement of Teramoto Corporation appear below: Ending Beginning Balance Balance $43 53 $35 59 73 Comparative Balance Sheet 69 490 Assets: Cash and cash equivalents Accounts receivable lnventory Plant and equipment Less accumulated depreciation Total assets 582 301 $4s0 Liabilities and stockholders’ equity M W – $s7 $48 2l Accounts payable Wages payable Taxes payable Bonds payable Deferred taxes Common stock 18 15 13 2t 20 20 2t 55 Retained earnings Total liabilities and stocktolders’ equity 50 26r t97 $450 $367 Income Statement Sales Cost of good sold Gross margin Selling and administative expense Net operating income Income taxes s893 587 306 189 117 35 Net incoine s82 & Cash dividends were $18. 2. The net cash provided by (used by) financing activities for the year was A. ($18). B. ($12). c. $s. D. $1. 3, A weakness of the intemal rate of retum method for screening invesfinent projects is that it A. implicitly as$unes that the company is able to reinvest cash flows from the project at the intemal rate of return. B. implicitly assumes that the company is able to reinvest cash flows from the project at the company’s discount rate. C. doesn’t consider the time value of money. D. doesnt take into account all of the cash flows from a project. 4. (Ignore income tanes in this problem.) The following data pertain to an investnent: inveshnent Life ofthe project Annual cost savings Estimated salvage value Discount rate Cost of the $18,955 5 years $5,000 $1,000 l0% The net present value of the proposed investment is A. s(3,430). B. $621. c. $3,355. D. $0. 5. Which of the following would be classified as a financing activity on the statement of cash flows? A. Dividends paid to shareholders of the company on the company’s common stock B. Dividends received on invesfinents in another company’s common stock C. lnterest received on investnents in another company’s bonds D, Interest paid on bonds issued by the reporting company 6. The net present value method assumes that the project’s cash flows are reinvested at the A. intemal rate of retum. B. simple rate of return. C. discount rate used in the net present value calculation. D. payback rate of return. Use the following information to answer this question. Financial statements for Larkins Company appear below: Larkins Company Statement of Financial Position December 31, Year 2 and Year (dollars in thousands) Year2 Year I $180 $180 2t0 180 Inventory 130 120 Prepaid expenses 50 574 530 1.540 1.480 $2,110 $2,010 Current assets: Cash and marketable securities Accounb receivable, net Total current assets Noncurrent assets: Plant & equipment, net Total assets 50 Cunent liabilities: Accounts payable Accrued liabilities Notes payable, short term Total cunent liabilities Noncurrent liabilities: Bonds payable Total liabilities Stockholders’ equity: Preferred stoch $20 par, l0% Common stock, $10 par Additional paid-in capital–common stock Retained earnings Total stocktolders’ equity Total liabilities & stockholders’ equity $100 60 90 250 480 $130 60 120 310 730 500 810 na 120 180 180 240 840 244 660 L2A0 s2.010 1.380 $2.110 Larkins Company Income Statement For the Year Ended December 3l,Year 2 (dollars in thousands) Sales (all on account) Cost of goods sold Gross margin Selling and administative expense Net operating income Inter

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