Questions from Financial Accounting

Q: A company has total assets of $500,000 and noncurrent

A company has total assets of $500,000 and noncurrent assets of $400,000. Current liabilities are $40,000. What is the current ratio? a. 12.5 b. 10.0 c. 2.5 d. Cannot be determined without additional...

Q: Which of the following would not change the receivables turnover ratio for

Which of the following would not change the receivables turnover ratio for a retail company? a. Increases in the retail prices of inventory. b. A change in credit policy. c. Increases in the cost incu...

Q: Which of the following ratios is used to analyze liquidity?

Which of the following ratios is used to analyze liquidity? a. Earnings per share. b. Debt-to-equity ratio. c. Current ratio. d. Both (a) and (c).

Q: Positive financial leverage indicates a. Positive cash flow from financing

Positive financial leverage indicates a. Positive cash flow from financing activities. b. A debt-to-equity ratio higher than 1. c. A rate of return on assets exceeding the interest rate on debt. d. A...

Q: The comparative financial statements prepared at December 31, 2012, for

The comparative financial statements prepared at December 31, 2012, for Prince Company showed the following summarized data: *One-third was credit sales. † During 2012, cash divide...

Q: Use the data given in P14-6 for Prince Company.

Use the data given in P14-6 for Prince Company. Required: 1. Present component percentages for 2012 only. 2. Respond to the following for 2012: a. What was the average percentage markup on sales? b....

Q: Use the 2012 data in P14-6 for Prince Company.

Use the 2012 data in P14-6 for Prince Company. Assume a stock price of $28 per share. Compute the appropriate ratios. Data from P14-6 The comparative financial statements prepared at December 31, 201...

Q: Company A uses the FIFO method to cost inventory, and Company

Company A uses the FIFO method to cost inventory, and Company B uses the LIFO method. The two companies are exactly alike except for the difference in inventory costing methods. Costs of inventory ite...

Q: Hershey’s is a familiar name in snacks. There’s a good chance

Hershey’s is a familiar name in snacks. There’s a good chance you have recently enjoyed one of itsproducts. The company manufactures confectionery products in a var...

Q: You have the opportunity to invest $10,000 in one

You have the opportunity to invest $10,000 in one of two companies from a single industry. The only information you have follows. The word high refers to the top third of the industry; average is the...