Final Exam 10/13/17, 1(15 PM
My Subscriptions / Courses / ACC501:80-Financial Accounting and Analysis / Final Exam
/ Final Exam
Started on Thursday, October 12, 2017, 8:18 PM
State Finished
Completed on Thursday, October 12, 2017, 11:11 PM
Time taken 2 hours 53 mins
Grade 208.00 out of 250.00 (83%)
QUESTION 1 Correct 4.00 points out of 4.00
Kroger's 2016 financial statements show net operating profit after tax of 2,286 million, net
income of $1,975 million, sales of $115,337 million, and average net operating assets of
18,616 million.
Kroger's net operating asset turnover for the year is:
Select one:
A. 12.3%
B. 8.11
C. 6.20
D. 10.9%
E. There is not enough information to calculate the ratio.
Rationale:
Net operating asset turnover = Sales / Average net operating assets
= $115,337 million / $18,616 million
= 6.20
https://mybusinesscourse.com/platform/mod/quiz/review.php?attempt=1403017&showall=1 Page 1 of 36
,Final Exam 10/13/17, 1(15 PM
QUESTION 2 Correct 4.00 points out of 4.00
Mattel Inc.'s 2016 financial statements show operating profit before interest and tax of
$519,233 thousand, net income of $318,022 thousand, provision for income taxes of
$91,720 thousand and net nonoperating expense before tax of $109,491 thousand. Assume
Mattel’s statutory tax rate for 2016 is 37%.
Mattel's 2016 tax shield is:
Select one:
A. $ 68,979 thousand
B. $ 40,512 thousand
C. $277,510 thousand
D. $186,460 thousand
E. None of the above
Rationale:
Tax shield = Net nonoperating expense before tax × statutory tax rate
= $109,491 × 37%
= $40,512 thousand
QUESTION 3 Correct 4.00 points out of 4.00
Which one of the following is not correct?
Select one:
A. For debt issued at par: interest expense reported on the income statement equals
the cash paid for interest.
B. For bond repurchases: Gain (loss) on bond repurchase = Cash paid to repurchase –
Net book value of bonds.
C. For debt issued at a discount: interest expense reported on the income statement
equals cash interest payment less amortization of the discount. !
D. For debt issued at a premium, interest expense reported on the income statement
equals cash interest payment less amortization of the premium.
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,Final Exam 10/13/17, 1(15 PM
equals cash interest payment less amortization of the premium.
E. None of the above
Rationale: For debt issued at a discount, interest expense reported on the income
statement is cash interest paid plus amortization of the discount.
QUESTION 4 Correct 4.00 points out of 4.00
Interest expense appears in which financial statement?
Select one:
A. Statement of stockholders' equity
B. Balance sheet
C. Income statement
D. Statement of cash flows
E. All of the above
Rationale: Expenses, including interest expense, appear in the income statement.
QUESTION 5 Correct 4.00 points out of 4.00
Which of the following is not a category for classifying cash flows in a statement of cash
flows?
Select one:
A. Operating activities
B. Nonoperating activities
C. Financing activities
D. Investing activities
E. None of the above
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, Final Exam 10/13/17, 1(15 PM
Rationale: The sections of a statement of cash flow are: operating, investing, and financing.
QUESTION 6 Correct 4.00 points out of 4.00
Aiello, Inc. had the following inventory in fiscal 2016. The company uses the LIFO method of
accounting for inventory.
Beginning Inventory, January 1, 2016: 130 units @ $15.00
Purchase 200 units @ $18.00
Purchase 50 units @ $13.50
Purchase 110 units @ $15.75
Ending Inventory, December 31, 2016: 120 units
The company’s cost of goods sold for fiscal 2016 is:
Select one:
A. $6,090.00
B. $1,800.00
C. $5,305.75
D. $6,157.50
E. None of the above
Rationale:
Costs of goods available for sale* $ 7,957.50
Less Ending Inventory (120 units @ $15) 1,800.00
Cost of goods sold $ 6,157.50
*Cost of goods available for sale:
(130 units × $15) + (200 units × $18) + (50 units × $13.50) + (110 units × $15.75) = $7,957.50
QUESTION 7 Incorrect 0.00 points out of 4.00
Which of the following is added to net income to reconcile to cash from operations?
https://mybusinesscourse.com/platform/mod/quiz/review.php?attempt=1403017&showall=1 Page 4 of 36
My Subscriptions / Courses / ACC501:80-Financial Accounting and Analysis / Final Exam
/ Final Exam
Started on Thursday, October 12, 2017, 8:18 PM
State Finished
Completed on Thursday, October 12, 2017, 11:11 PM
Time taken 2 hours 53 mins
Grade 208.00 out of 250.00 (83%)
QUESTION 1 Correct 4.00 points out of 4.00
Kroger's 2016 financial statements show net operating profit after tax of 2,286 million, net
income of $1,975 million, sales of $115,337 million, and average net operating assets of
18,616 million.
Kroger's net operating asset turnover for the year is:
Select one:
A. 12.3%
B. 8.11
C. 6.20
D. 10.9%
E. There is not enough information to calculate the ratio.
Rationale:
Net operating asset turnover = Sales / Average net operating assets
= $115,337 million / $18,616 million
= 6.20
https://mybusinesscourse.com/platform/mod/quiz/review.php?attempt=1403017&showall=1 Page 1 of 36
,Final Exam 10/13/17, 1(15 PM
QUESTION 2 Correct 4.00 points out of 4.00
Mattel Inc.'s 2016 financial statements show operating profit before interest and tax of
$519,233 thousand, net income of $318,022 thousand, provision for income taxes of
$91,720 thousand and net nonoperating expense before tax of $109,491 thousand. Assume
Mattel’s statutory tax rate for 2016 is 37%.
Mattel's 2016 tax shield is:
Select one:
A. $ 68,979 thousand
B. $ 40,512 thousand
C. $277,510 thousand
D. $186,460 thousand
E. None of the above
Rationale:
Tax shield = Net nonoperating expense before tax × statutory tax rate
= $109,491 × 37%
= $40,512 thousand
QUESTION 3 Correct 4.00 points out of 4.00
Which one of the following is not correct?
Select one:
A. For debt issued at par: interest expense reported on the income statement equals
the cash paid for interest.
B. For bond repurchases: Gain (loss) on bond repurchase = Cash paid to repurchase –
Net book value of bonds.
C. For debt issued at a discount: interest expense reported on the income statement
equals cash interest payment less amortization of the discount. !
D. For debt issued at a premium, interest expense reported on the income statement
equals cash interest payment less amortization of the premium.
https://mybusinesscourse.com/platform/mod/quiz/review.php?attempt=1403017&showall=1 Page 2 of 36
,Final Exam 10/13/17, 1(15 PM
equals cash interest payment less amortization of the premium.
E. None of the above
Rationale: For debt issued at a discount, interest expense reported on the income
statement is cash interest paid plus amortization of the discount.
QUESTION 4 Correct 4.00 points out of 4.00
Interest expense appears in which financial statement?
Select one:
A. Statement of stockholders' equity
B. Balance sheet
C. Income statement
D. Statement of cash flows
E. All of the above
Rationale: Expenses, including interest expense, appear in the income statement.
QUESTION 5 Correct 4.00 points out of 4.00
Which of the following is not a category for classifying cash flows in a statement of cash
flows?
Select one:
A. Operating activities
B. Nonoperating activities
C. Financing activities
D. Investing activities
E. None of the above
https://mybusinesscourse.com/platform/mod/quiz/review.php?attempt=1403017&showall=1 Page 3 of 36
, Final Exam 10/13/17, 1(15 PM
Rationale: The sections of a statement of cash flow are: operating, investing, and financing.
QUESTION 6 Correct 4.00 points out of 4.00
Aiello, Inc. had the following inventory in fiscal 2016. The company uses the LIFO method of
accounting for inventory.
Beginning Inventory, January 1, 2016: 130 units @ $15.00
Purchase 200 units @ $18.00
Purchase 50 units @ $13.50
Purchase 110 units @ $15.75
Ending Inventory, December 31, 2016: 120 units
The company’s cost of goods sold for fiscal 2016 is:
Select one:
A. $6,090.00
B. $1,800.00
C. $5,305.75
D. $6,157.50
E. None of the above
Rationale:
Costs of goods available for sale* $ 7,957.50
Less Ending Inventory (120 units @ $15) 1,800.00
Cost of goods sold $ 6,157.50
*Cost of goods available for sale:
(130 units × $15) + (200 units × $18) + (50 units × $13.50) + (110 units × $15.75) = $7,957.50
QUESTION 7 Incorrect 0.00 points out of 4.00
Which of the following is added to net income to reconcile to cash from operations?
https://mybusinesscourse.com/platform/mod/quiz/review.php?attempt=1403017&showall=1 Page 4 of 36
