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Wegener Corporation's most recent balance sheet and income statement appear below: Wegener Corporation's most recent balance sheet and income statement appear below: Required: Compute the following for Year 2: a. Working capital. b. Current ratio. c. Acid-test ratio. d. Accounts receivable turnover. e. Average collection period. f. Inventory turnover. g. Average sale period. Wegener Corporation's most recent balance sheet and income statement appear below: Required: Compute the following for Year 2: a. Working capital. b. Current ratio. c. Acid-test ratio. d. Accounts receivable turnover. e. Average collection period. f. Inventory turnover. g. Average sale period. Required: Compute the following for Year 2: a. Working capital. b. Current ratio. c. Acid-test ratio. d. Accounts receivable turnover. e. Average collection period. f. Inventory turnover. g. Average sale period.

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a. Working capital = Current assets - Cu...

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Kearin Corporation has provided the following financial data: Kearin Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $8,000. The market price of common stock at the end of Year 2 was $2.02 per share. -The company's return on equity for Year 2 is closest to: A) 71.44% B) 4.72% C) 2.97% D) 1.93% Kearin Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $8,000. The market price of common stock at the end of Year 2 was $2.02 per share. -The company's return on equity for Year 2 is closest to: A) 71.44% B) 4.72% C) 2.97% D) 1.93% Dividends on common stock during Year 2 totaled $8,000. The market price of common stock at the end of Year 2 was $2.02 per share. -The company's return on equity for Year 2 is closest to:


A) 71.44%
B) 4.72%
C) 2.97%
D) 1.93%

E) A) and B)
F) A) and C)

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Sabino Corporation's total common stock was $500,000 at the end of both Year 2 and Year 1. The par value of common stock is $5 per share. The company's total stockholders' equity at the end of Year 2 amounted to $1,125,000 and at the end of Year 1 to $1,090,000. The company's total liabilities and stockholders' equity at the end of Year 2 amounted to $1,581,000 and at the end of Year 1 to $1,540,000. The company's retained earnings at the end of Year 2 amounted to $545,000 and at the end of Year 1 to $510,000. The company's net income in Year 2 was $39,000. -The acid-test ratio at the end of Year 2 is closest to:


A) 2.17
B) 1.78
C) 1.74
D) 1.06

E) None of the above
F) C) and D)

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Kovack Corporation's net operating income in Year 2 was $66,571, net income before taxes was $46,571, and the net income was $32,600. Total common stock was $120,000 at the end of both Year 2 and Year 1. The par value of common stock is $2 per share. The company's total stockholders' equity at the end of Year 2 amounted to $962,000 and at the end of Year 1 to $930,000. The company declared and paid $600 dividends on common stock. The market price per share was $4.37. The company's dividend yield ratio for Year 2 is closest to:


A) 0.2%
B) 1.3%
C) 1.9%
D) 0.5%

E) None of the above
F) B) and D)

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A

Neef Corporation has provided the following financial data from its balance sheet and income statement: Neef Corporation has provided the following financial data from its balance sheet and income statement: -The company's return on equity for Year 2 is closest to: A) 67.25% B) 2.27% C) 1.47% D) 4.19% Neef Corporation has provided the following financial data from its balance sheet and income statement: -The company's return on equity for Year 2 is closest to: A) 67.25% B) 2.27% C) 1.47% D) 4.19% -The company's return on equity for Year 2 is closest to:


A) 67.25%
B) 2.27%
C) 1.47%
D) 4.19%

E) B) and C)
F) A) and D)

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Financial statements for Maraby Corporation appear below: Financial statements for Maraby Corporation appear below: -Maraby Corporation's working capital (in thousands of dollars) at the end of Year 2 was closest to: A) $260 B) $620 C) $360 D) $990 Financial statements for Maraby Corporation appear below: -Maraby Corporation's working capital (in thousands of dollars) at the end of Year 2 was closest to: A) $260 B) $620 C) $360 D) $990 -Maraby Corporation's working capital (in thousands of dollars) at the end of Year 2 was closest to:


A) $260
B) $620
C) $360
D) $990

E) None of the above
F) C) and D)

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The gross margin percentage is computed by dividing sales by the gross margin.

A) True
B) False

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Sabino Corporation's total common stock was $500,000 at the end of both Year 2 and Year 1. The par value of common stock is $5 per share. The company's total stockholders' equity at the end of Year 2 amounted to $1,125,000 and at the end of Year 1 to $1,090,000. The company's total liabilities and stockholders' equity at the end of Year 2 amounted to $1,581,000 and at the end of Year 1 to $1,540,000. The company's retained earnings at the end of Year 2 amounted to $545,000 and at the end of Year 1 to $510,000. The company's net income in Year 2 was $39,000. -The company's working capital at the end of Year 2 is:


A) $732,000
B) $831,000
C) $289,000
D) $590,000

E) A) and B)
F) A) and C)

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Erastic Corporation has $14,000 in cash, $8,000 in marketable securities, $34,000 in account receivable, $40,000 in inventories, and $42,000 in current liabilities. The corporation's current assets consist of cash, marketable securities, accounts receivable, and inventory. The corporation's acid-test ratio is closest to:


A) 1.33
B) 0.81
C) 2.29
D) 1.14

E) B) and C)
F) A) and D)

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Excerpts from Sydner Corporation's most recent balance sheet appear below: Excerpts from Sydner Corporation's most recent balance sheet appear below: -The inventory turnover for Year 2 is closest to: A) 3.75 B) 1.20 C) 4.09 D) 0.83 -The inventory turnover for Year 2 is closest to:


A) 3.75
B) 1.20
C) 4.09
D) 0.83

E) All of the above
F) A) and B)

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Steinkraus Corporation has provided the following data: Steinkraus Corporation has provided the following data: Required: Compute the accounts receivable turnover for this year. Show your work! Required: Compute the accounts receivable turnover for this year. Show your work!

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Accounts receivable turnover =...

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A portion of Lapore Corporation's Balance Sheet appears below:  Liabilities and Stockholders’ Equity  Year 2 Year 1 Current liabilities:  Accounts payable 209,000$200,000 Accrued liabilities 27,00030,000 Notes payable, short term 94,00090,000 Total current liabilities. 330,000320,000 Bonds payable 280,000280,000 Total liabilities 610,000600,000 Stockholders’ equity:  Common stock, $4 par value 360,000360,000 Additional paid-in capital–common stock 70,00070,000 Retained eamings 589,000570,000 Total stockholders’ equity $1,019,000$1,000,000 Total liabilities & stockholders’ equity $1,629,000$1,600,000\begin{array}{llll}\text { Liabilities and Stockholders' Equity }&\text { Year } 2 & \text { Year } 1\\\text { Current liabilities: }\\\text { Accounts payable }&209,000 & \$ 200,000 \\\text { Accrued liabilities }&27,000 & 30,000 \\\text { Notes payable, short term }&94,000 & 90,000\\\text { Total current liabilities. }&330,000&320,000\\\text { Bonds payable }&280,000&280,000\\\text { Total liabilities }&610,000&600,000\\\text { Stockholders' equity: }\\\text { Common stock, \$4 par value }&360,000 & 360,000 \\\text { Additional paid-in capital--common stock }&70,000 & 70,000 \\\text { Retained eamings }&589,000 & 570,000\\\text { Total stockholders' equity }&\$1,019,000&\$1,000,000\\\text { Total liabilities \& stockholders' equity }&\$1,629,000&\$1,600,000\end{array} The company's debt-to-equity ratio at the end of Year 2 is closest to:


A) 0.60
B) 0.37
C) 0.39
D) 0.27

E) C) and D)
F) B) and D)

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Spomer Corporation's inventory at the end of Year 2 was $114,000 and its inventory at the end of Year 1 was $120,000. Cost of goods sold amounted to $710,000 in Year 2. The company's inventory turnover for Year 2 is closest to:


A) 5.92
B) 1.05
C) 6.07
D) 6.23

E) C) and D)
F) B) and D)

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As the accounts receivable turnover ratio decreases, the average collection period increases.

A) True
B) False

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Babbitt Corporation has provided the following data from its most recent income statement: Babbitt Corporation has provided the following data from its most recent income statement: Required: Compute the times interest earned ratio. Show your work! Required: Compute the times interest earned ratio. Show your work!

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Times interest earned = Net operating income ÷ Interest expense = $94,000 ÷ $62,000 = 1.52

Neef Corporation has provided the following financial data from its balance sheet and income statement: Neef Corporation has provided the following financial data from its balance sheet and income statement: -The company's return on total assets for Year 2 is closest to: A) 0.99% B) 1.00% C) 1.85% D) 1.83% Neef Corporation has provided the following financial data from its balance sheet and income statement: -The company's return on total assets for Year 2 is closest to: A) 0.99% B) 1.00% C) 1.85% D) 1.83% -The company's return on total assets for Year 2 is closest to:


A) 0.99%
B) 1.00%
C) 1.85%
D) 1.83%

E) A) and B)
F) A) and C)

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When a company sells used equipment for a loss, the net profit margin percentage is unaffected.

A) True
B) False

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Leflore Corporation has provided the following data:  Year 2  Year 1 Common stock, $5 par value. $500,000$500,000Total stockholders’ equity. $1,016,000$1,010,000Net operating income. $35,143Net income before taxes $17,143 Net income $12,000\begin{array}{lrr}&{\text { Year 2 }} &{\text { Year 1 }} \\\text {Common stock, \$5 par value. }&\$ 500,000 & \$ 500,000 \\\text {Total stockholders' equity. }&\$ 1,016,000 & \$ 1,010,000 \\\text {Net operating income. }&\$ 35,143 & \\\text {Net income before taxes }&\$ 17,143 & \\\text { Net income }&\$ 12,000 &\end{array} Dividends on common stock during Year 2 totaled $6,000. The market price of common stock at the end of Year 2 was $1.38 per share. The company's dividend yield ratio for Year 2 is closest to:


A) 4.3%
B) 1.2%
C) 35.0%
D) 50.0%

E) A) and B)
F) B) and D)

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Excerpts from Sydner Corporation's most recent balance sheet appear below: Excerpts from Sydner Corporation's most recent balance sheet appear below: -The average sale period for Year 2 is closest to: A) 63.0 days B) 89.2 days C) 236.3 days D) 97.3 days -The average sale period for Year 2 is closest to:


A) 63.0 days
B) 89.2 days
C) 236.3 days
D) 97.3 days

E) All of the above
F) A) and D)

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Fayer Corporation has provided the following financial data: Fayer Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $4,500. The market price of common stock at the end of Year 2 was $10.88 per share. -The company's equity multiplier at the end of Year 2 is closest to: A) 0.69 B) 2.23 C) 0.45 D) 1.45 Dividends on common stock during Year 2 totaled $4,500. The market price of common stock at the end of Year 2 was $10.88 per share. -The company's equity multiplier at the end of Year 2 is closest to:


A) 0.69
B) 2.23
C) 0.45
D) 1.45

E) A) and C)
F) A) and B)

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D

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