[Solved] ACC 201 Week 5 Quiz 5

ACC 201 Week 5 Quiz 5 EX. 09-080 Revenue and expense data for Reuters Company are as follows: 2017 2016 Administrative expenses $24,750 $18,000 Cost of goods sold 500,000 375,000 Income tax expense 11,600 12,000 Net sales 750,000 600,000 Selling expenses 182,250 154,800 Prepare a comparative income statement, with vertical analysis, stating each item for both 2017 and 2016 as a percent of sales. Round percentage values to one decimal place and state as a whole number. Do not enter the percent sign. (For example, enter .9569 as "95.7"). EX. 08-135 The following accounts and their balances appear in the ledger on December 31 of the current year: Common Stock, $20 par $400,000 Paid-In Capital in Excess of Par 44,000 Retained Earnings 265,000 Treasury Stock 20,000 Prepare the Stockholders' Equity section of the balance sheet as of December 31. Twenty five thousand shares of common stock are authorized, and 1,000 shares have been reacquired. EX.08-133 Indicate whether the following actions would ( ) increase, (-) decrease, or (0) not affect a company's total assets, liabilities, and stockholders' equity. MC.08-107 Which of the following is a reason for a corporation to buy back its own stock? What is the effect of declaring a stock dividend on the liabilities and stockholders' equity section of the balance sheet? Total property, plant, and equipment 900,000 700,000 Total current liabilities 125,000 80,000 Total long-term liabilities 350,000 250,000 Preferred 9% stock, $100 par 100,000 100,000 Common stock, $10 par 600,000 600,000 Paid-in capital in excess of par--common stock 60,000 60,000 Retained earnings 325,000 210,000 Based on the above information, if net income is $130,000 and interest expense is $40,000 for 2017, and the market price is $40, what is the price-earnings ratio on common stock (round to one decimal place)? A company sold 200 shares of common stock with a par value of $5 at a price of $13 per share. What is the effect on the accounts of this transaction? The following data are taken from the financial statements: Current Preceding Year Year Net sales $3,592,000 $4,056,000 Cost of goods sold 2,092,000 2,656,000 Average monthly inventory 332,000 328,000 Inventory, end of year 372,000 347,000 a. Determine for each year (1) the inventory turnover and (2) the days' sales in inventory. Round inventory turnover answers to one decimal place and number of days' sales in inventory, (including intermediate calculations) to two decimal places. MC.09-067 Garnet Company reported the following on its income statement: Income before income taxes $450,000 Income tax expense 52,000 Net income $398,000 An analysis of the income statement revealed that interest expense was $50,000. Garnet Company's times interest earned are earned was: The excess of issue price over par of common stock is termed as: MC.08-112 Which of the following is an effect of payment of cash dividends on a company's financial statements? d.A decrease in cash and stockholders' equity Treasury stock is reported in the _____ section of the balance sheet. tment On April 1, 10,000 shares of $20 par common stock were issued at $24. Illustrate the effects on the accounts and the financial statements. EX.09-079 Condensed data taken from the ledger of Crawford Company at December 31, 2017 and 2016, are as follows: 2017 2016 Current assets $200,000 $180,000 Property, plant, and equipment 450,000 400,000 Intangible assets 20,700 30,000 Current liabilities 70,000 80,000 Long-term liabilities 200,000 250,000 Common stock 275,000 200,000 Retained earnings 125,700 80,000 Prepare a comparative balance sheet, with horizontal analysis, for December 31, 2017 and 2016. Round percentage values to one decimal place and state as a whole number. Do not enter the percent sign. (For example, enter .9569 as "95.7"). MC.09-076 Sarbanes-Oxley Act of 2002 requires which of the following report to be prepared by the management of the company? MC.09-068 The balance sheet and income statement for the year ended 2016 indicate the following: Bonds payable, 10% (issued 1998, due 2022) $1,200,000 Preferred 5% stock, $100 par (no change during year) 350,000 Common stock, $50 par (no change during year) 2,100,000 Income before income tax for year 3,100,000 Income tax for year 72,000 Common dividends paid 58,000 Preferred dividends paid 16,300 The reduction of par or stated value of stock by issuance of a proportionate number of additional shares is termed a: option. On which of the following dates, a company incurs liability for a dividend? MC.08-110 Emerald Co. has 50,000 shares at $12 par common stock outstanding. If the company decides to buy 20% of its shares for $15 per share, the total stockholders' equity will: EX.09-082 The following items are reported on a company's balance sheet: Cash $258,000 Marketable securities 114,000 Accounts receivable 187,000 Inventory 204,000 Notes payable (short-term) 249,000 Determine the (a) current ratio and (b) quick ratio. Round your answers to one decimal place. MC.08-117.Algo A corporation has 55,191 shares of $35 par value stock outstanding that has a current market value of $261. If the corporation issues a 4-for-1 stock split, what amount approximately will the market value of the stock fall to? MC.08-104 A company sold 200 shares of common stock with a par value of $5 at a price of $12 per share. Which section of the statement of cash flows will contain this transaction? MC.09-075 The following information is available for Morgan Corporation: 2016 Market price per share of common stock $25.00 Earnings per share on common stock 1.25 MC.09-074 t be determined without more information.