(question 3-76) 3. The following selected data are taken from the


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Dec 13, 2015. (question 3-76) 3.        The following selected data are taken from the Blake Company’s accounts: Sales in 2016$714,000 Cost of goods sold in 2016432,000 Accounts receivable, 12/31/16484,000 Accounts receivable, 1/1/16440,000 Inventory, 1/1/16260,000 Inventory, 12/31/16140,000 The inventory turnover rate is: A.        2.16 B.         1.35 C.        3.57 D.        1.66 E.   none of the above 8.         Given the following data, what are earnings per share of common stock?  No shares were issued in 2016. Net sales for 2016 $3,180,000 Net income 199,000 Common stock (par value, $100) 1,000,000 Paid-in capital in excess of par-common 45,000 Preferred stock (par value, $100), 4% 30,000 Cash dividends: On preferred$ 1,200 On common35,00036,200 A.        $3.18 B.         $3.62 C.        $15.78 D.        $19.78 E.   none of the above 11.       If a company increases the quality of its product, it will experience the following differential revenues and costs: Revenues $350,000, Fixed manufacturing costs $30,000, variable manufacturing costs $160,000, variable selling costs $40,000. The company should: A.        Increase quality, increasing income by $150,000 B.         Not increase quality, saving $30,000 in fixed manufacturing costs C.        Increase quality, increasing income by $120,000 D.        Not increase quality, saving $230,000 in differential costs. 13.       The Deck Food Company accounts show the following for the fiscal year ended September 30, 2016: Gross sales$879,600 Sales returns and allowances    19,600 Net sales$860,000 Accounts receivable (net): On 9/30/06$  80,000 On 9/30/07120,000 The turnover of accounts receivable is: A.        6.14 times per year. B.         8.4 times per year. C.        8.0 times per year. D.        8.8 times per year. E.   none of the above 15.      Given the following information, determine the times interest earned ratio: Income before interest and taxes$  900,000 Less: Interest expense   (200,000) Income before federal income taxes$  700,000 Less: Taxes   (280,000) Net income$  420,000 A.        1.65 B.         4.00 C.        2.10 D.        3.50 E.   none of the above 18.      Use the high/low method to determine the fixed costs for a product, which has high and low mixed product costs as follows: 50,000 units produced at a cost of $36,000 and 80,000 units produced at a cost of $48,000. A.        $ 6,000 B.         $ 8,000 C.        $12,000 D.        $30,000 E.    None of the above (test 1, a-f, question 16) 19.    The Austin Corporation stockholders earned a return of 8% on stock that had a market price of $48 per share.  What is the price-earnings ratio? A.        16 to 1 B.         6 to 1 C.        8 to 1 D.        .17 to 1 E.   none of the above 25.    The Sharp Company is in the process of evaluating its various departments for the quarter ending June 30, 2016.  The Metal Department had the following results: Sales……………………………………………. $250,000 Contribution margin………………………………..   90,000 Contribution to indirect expenses……………………   50,000 “Controllable” income………………………………   40,000 Net income of the segment…………………………..   25,000 Assets directly used and identified with Metal Department  225,000 Assets under the “control” of the segment manager……..  200,000 26.       Assume that the Oakley Corporation has fixed costs of $100,000 and variable costs of $100 per unit.  Which one of the following selling prices will yield the maximum net income? A.        $90 per unit if 50,000 units can be sold at that price B.         $100 per unit if 45,000 units can be sold at that price C.        $120 per unit if 40,000 units can be sold at that price D.        $130 per unit if 35,000 units can be sold at that price 28.       The Redwood Company is considering the purchase of a new machine. The machine costs $40…

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