31 the mccumber corporation data for the current year account current year prior yea 4307905

31 the mccumber corporation data for the current year account current year prior yea 4307905

31) The McCumber Corporation data for the current year:

AccountCurrent yearPrior year

Current assets$76,200$60,000

A/R$59,400$44,000

Mdse. Inventory$51,200$40,000

Current liabilities$82,500$55,000

Long-term liabilities$38,000$30,000

Common stock (5,000 shares) $47,880$42,000

Retained earnings$18,420$17,000

Net sales revenue$618,000$515,000

COGS$478,140     $385,000

Gross Profit$139,860$130,000

Selling/General expenses$47,860$50,000

Net income before taxes$92,000$80,000

Income tax expense$23,000$20,000

Net Income$69,000$60,000

With respect to common stock, what would a horizontal analysis report?

A) Stockholder's equity as 7.75% of total capital

B) Sales return of $11.17

C) 87.72% increase from prior to current year of cost of goods sold

D) Increase of $5,880 in common stock

32) The McCumber Corporation data for the current year:

AccountCurrent yearPrior year

Current assets$76,200$60,000

A/R$59,400$44,000

Mdse. Inventory$51,200$40,000

Current liabilities$82,500$55,000

Long-term liabilities$38,000$30,000

Common stock (5,000 shares) $47,880$42,000

Retained earnings$18,420$17,000

Net sales revenue$618,000$515,000

COGS$478,140     $385,000

Gross Profit$139,860$130,000

Selling/General expenses$47,860$50,000

Net income before taxes$92,000$80,000

Income tax expense$23,000$20,000

Net Income$69,000$60,000

With respect to current assets, what would a horizontal analysis report?

A) Inventory turnover of 9.34 times

B) Current ratio of 0.92

C) Current assets as 40.79% of total assets

D) A 27.00% increase in current assets

33) Use the following information to do a horizontal analysis of Marcus Corporation's income statement for the current year and prior year:

AccountCurrent yearPrior yearDollar Change% Change

Cost of goods sold$381,000$300,000

Selling/general expense$62,000$40,000

Gross profit$102,600$76,800

Net income$17,160$22,000

What is the percentage change in net income?

A) 78.00%

B) -22.00%

C) 16.73%

D) 35.59%

34) Use the following information to do a horizontal analysis of Marcus Corporation's income statement for the current year and prior year:

AccountCurrent yearPrior yearDollar Change% Change

Cost of goods sold$381,000$300,000

Selling/general exp$62,000$40,000

Gross profit$102,600$76,800

Net income$17,160$22,000

What is the dollar change in gross profit?

A) $22,000

B) $(4,840)

C) $179,400

D) $25,800

35) Use the following information to do a horizontal analysis of Marcus Corporation's income statement for the current year and prior year

AccountCurrent yearPrior yearDollar Change% Change

Cost of goods sold$381,000$300,000

Selling/general exp$62,000$40,000

Gross profit$102,600$76,800

Net income$17,160$22,000

What is the percentage change in cost of goods sold?

A) -22.00%

B) 27.00%

C) 127.00%

D) 33.59%

36) Use the following information to do a horizontal analysis of Marcus Corporation's income statement for the current year and prior year:

AccountCurrent yearPrior yearDollar Change% Change

Cost of goods sold$381,000$300,000

Selling/general exp$62,000$40,000

Gross profit$102,600$76,800

Net income$17,160$22,000

What is the dollar change in selling/general expenses?

A) $(4,840)

B) $81,000

C) $22,000

D) $102,000

37) A company reported the following amounts of net income:

Year 1$120,960

Year 2$151,200

Year 3$187,488

Which of the following is the percentage change from Year 2 to Year 3?

A) 24.00%

B) 55.00%

C) 124.00%

D) 25.00%

38) A company reported the following amounts of net income:

Year 1$120,960

Year 2$151,200

Year 3$187,488

Which of the following is the percentage change from Year 1 to Year 2?

A) 24.00%

B) 25.00%

C) 124.00%

D) 55.00%

39) The Stemple Corporation data for the current year:

AccountCurrent yearPrior year

Current assets$51,240$42,000

A/R$73,800$60,000

Mdse. Inventory$67,500$50,000

Current liabilities$41,400$30,000

Long-term liabilities$26,600$28,000

Common stock (5,000 shares) $41,000$35,000

Retained earnings$83,540$59,000

Net sales revenue$595,000$500,000

COGS$480,000     $400,000

Gross Profit$115,000$100,000

Selling/General expenses$44,000$50,000

Net income before taxes$71,000$50,000

Income tax expense$16,500$15,000

Net Income$54,500$35,000

What would a horizontal analysis report with respect to current liabilities show?

A) Current liabilities are 6.96% of total capital.

B) Current liabilities saw a 72.46% increase from the prior year to the current year.

C) The current ratio is 1.24.

D) Current liabilities saw a 38.00% increase from the prior year to the current year.

40) The Stemple Corporation data for the current year:

AccountCurrent yearPrior year

Current assets$51,240$42,000

A/R$73,800$60,000

Mdse. Inventory$67,500$50,000

Current liabilities$41,400$30,000

Long-term liabilities$26,600$28,000

Common stock (5,000 shares) $41,000$35,000

Retained earnings$83,540$59,000

Net sales revenue$595,000$500,000

COGS$480,000     $400,000

Gross Profit$115,000$100,000

Selling/General expenses$44,000$50,000

Net income before taxes$71,000$50,000

Income tax expense$16,500$15,000

Net Income$54,500$35,000

What would a horizontal analysis report with respect to net income show?

A) Both net income before tax expense and net income are 9.16% of net sales revenue.

B) There was an increase in net income of 55.71%.

C) Both net income before income tax expense and net income increased by $89,500.

D) The current ratio is 1.24.

"Get 15% discount on your first 3 orders with us"
Use the following coupon
"FIRST15"

Order Now

Related Posts