accounting help 426151

Aug 29, 2021 | Uncategorized

Question 1

  1. The calculation of free cash flow contains a deduction for Answer
    a. net cash flows from operating activities.
    b. interest expense.
    c. dividends.
    d. depreciation.

Question 2

  1. Which of the following situations severely limits the use of industry norms as standards of comparison? Answer
    a. The existence of conglomerates
    b. A downward turn in the economy
    c. The fact that little information exists on industry norms
    d. The presentation of segmented information

Question 3

  1. A company with a current ratio of 2.4 times will see that ratio decrease when the company Answer
    a. declares a 10 percent stock dividend on its common stock.
    b. converts a short term liability to a long term liability.
    c. borrows cash by issuing a short term note payable.
    d. pays a large current liability.

Question 4

  1. One reason that a common size statement is a useful tool in financial performance evaluation is that it enables the user to Answer
    a. judge the relative potential of two companies of similar size in different industries.
    b. determine which companies in a single industry are of the same value.
    c. determine which companies in a single industry are of the same size.
    d. make better comparisons of two companies of different sizes in the same industry.

1 points

Question 5

  1. The following information pertains to Jasmin Corporation. Assume that all balance sheet amounts represent both average and ending figures.
    Jasmin Corporation
    Partial Balance Sheet
    December 31, 2009
    Liabilities and Stockholders’ Equity
    Current liabilities $ 60,000
    Long term liabilities 90,000
    Stockholders’ equity 150,000
    Total liabilities and stockholders’ equity $300,000
    Jasmin Corporation
    Income Statement
    For the Year Ended December 31, 2009
    Net sales $80,000
    Cost of goods sold 45,000
    Gross margin $35,000
    Operating expenses 15,000
    Income before income taxes $20,000
    Income taxes expense 5,000
    Net income $15,000

    Jasmin Corporation had 6,000 shares of common stock issued and outstanding. The market price of Jasmin common stock on December 31, 2009, was $20. Jasmin paid dividends of $1.65 per share during 2009.What is the dividends yield of this corporation? Round your answer to two decimal places. Answer

    a. 9.90 percent
    b. 6.60 percent
    c. 4.95 percent
    d. 8.25 percent

Question 6

  1. The equation for finding the breakeven point may be written as Answer
    a. S + VC + FC = 0.
    b. VC FC = S.
    c. S + FC = VC.
    d. S VC FC = 0.

Question 7

  1. At the breakeven point, the contribution margin Answer
    a. minus total fixed costs equals a positive number.
    b. is at a minimum.
    c. equals fixed costs.
    d. is at a maximum.

Question 8

  1. An insurance company pays its employees a commission of 6 percent on each sale. What is the proper classification of the cost of sales commissions? Answer
    a. Mixed cost
    b. Variable cost
    c. Fixed cost
    d. Constant cost

Question 9

  1. The new Corina watch has an expected selling price per watch of $42, the projected variable cost per unit is $24, and estimated fixed costs per month are $24,120.The breakeven point in sales dollars is Answer
    a. $48,240.
    b. $32,160.
    c. $40,200.
    d. $56,280.

Question 10

  1. Using the contribution margin approach, find the contribution margin ratio for Consumer Products if the selling price per unit is $12, the variable cost per unit is $3, and the fixed costs are $8,040. Answer
    a. 75%
    b. 100%
    c. 25%
    d. 50%