1. In Garland Company, land decreased $140,000 because of a cash sale for $140,000, the equipment account increased $40,000 as a result of a cash purchase, and Bonds Payable increased $130,000 from issuance for cash at face value. The net cash provided by investing activities is
1. Carrot Company issued common stock for proceeds of $381,000 during 2012. The company paid dividends of $90,000 and issued a long-term note payable for $95,000 in exchange for equipment during the year. The company also purchased treasury stock that had a cost of $18,000. The financing section of the statement of cash flows will report net cash inflows of
1. Plough Company reported net income of $180,000 for the current year. Depreciation recorded on buildings and equipment amounted to $80,000 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:
|End of Year||Beginning of Year|
|Income taxes payable||1,600||1,200|
3. Instructions Prepare the cash flows from the operating activities section of the statement of cash flows using the indirect method.
1. Which one of the following is not a tool in financial statement analysis?
1. In performing a vertical analysis, the base for cost of goods sold is
|A.||total selling expenses.|
1. A liquidity ratio measures the
|A.||income or operating success of an enterprise over a period of time.|
|B.||ability of the enterprise to survive over a long period of time.|
|C.||number of times interest is earned.|
|D.||short-term ability of the enterprise to pay its maturing obligations and to meet unexpected needs for cash.|
1. A successful grocery store would probably have
|B.||a low inventory turnover.|
|C.||a high inventory turnover.|
|D.||zero profit margin.|
1. West Company had $375,000 of current assets and $150,000 of current liabilities before borrowing $75,000 from the bank with a 3-month note payable. What effect did the borrowing transaction have on West Company’s current ratio?
|A.||The change in the current ratio cannot be determined.|
|B.||The ratio decreased.|
|C.||The ratio increased.|
|D.||The ratio remained unchanged.|
1. Harvey Clothing Store had a balance in the Accounts Receivable account of $390,000 at the beginning of the year and a balance of $410,000 at the end of the year. Net credit sales during the year amounted to $3,000,000. The average collection period of the receivables in terms of days was
1. Assume the following sales data for a company:
2. If 2011 is the base year, what is the percentage increase in sales from 2011 to 2012?
1. Star Corporation had net income of $300,000 and paid dividends to common stockholders of $40,000 in 2012. The weighted average number of shares outstanding in 2012 was 50,000 shares. Star Corporation’s common stock is selling for $36 per share on the New York Stock Exchange. Star Corporation’s price-earnings ratio is