MANAGERIAL ACCOUNTING QUESTIONS AND ANSWERS 1

MANAGERIAL ACCOUNTING QUESTIONS AND ANSWERS 1

The financial statements of Carrier Office Furniture Company include the following items:

2019 2018
Cash $52,500 $50,000
Short-term Investments 29,000 12,000
Net Accounts Receivable 99,000 106,000
Merchandise Inventory 161,000 152,000
Total Assets 527,000 544,000
Total Current Liabilities 273,000 285,000
Long-term Note Payable 55,000 53,000

What is working capital for 2019?

A. $92,500
B. $68,500
C. $199,000
D. $39,500

B. $68,500

The financial statements for Uptown Service Company include the following items:

2019 2018
Cash $50,500 $40,000
Short-term Investments 32,000 11,000
Net Accounts Receivable 52,000 55,000
Merchandise Inventory 157,000 49,000
Total Assets 531,000 554,000
Accounts Payable 124,500 124,000
Salaries Payable 16,000 18,000
Long-term Note Payable 56,000 52,000

Compute working capital for 2019.

A. $135,000
B. $151,000
C. $95,000
D. $31,000

, B. $151,000

Mercer, Inc. provides the following data for 2019:

Net sales revenue 595,000
Cost of Goods Sold 370,000

The gross profit as a percentage of net sales is ________. (Round your answer to two decimal
places.)

A. 39.16%
B. 35.89%
C. 37.82%
D. 62.18%

C. 37.82%

Reliable Moving Company reported the following amounts on its balance sheet as of
December 31, 2019 and December 31, 2018:

2019 2018
Cash and Receivables $75,000 $135,000
Merchandise Inventory 155,000 220,000
Property, Plant and Equipment, net 770,000 770,000
Total Assets $1,000,000 $1,125,000
Total Liabilities $465,000 $435,000

For the vertical analysis, what is the percentage of total liabilities for December 31, 2018?
(Round your answer to two decimal places.)

A. 31.03%
B. 38.67%
C. 100%
D. 46.50%

B. 38.67%

The following is a summary of information presented on the financial statements of a
company on December 31, 2019.

Account 2019 2018