91 lucas company has provided the following information cash flow from operating act 4314004

91 lucas company has provided the following information cash flow from operating act 4314004

91.Lucas Company has provided the following information:

• Cash flow from operating activities, $360,000

• Net income, $306,000

• Interest expense, $30,000

• Interest cash payments, $20,000

• Income tax payments, $240,000

• Income tax expense, $246,000

What was Lucas' cash coverage ratio? 

A. 21.0

B. 31.8

C. 21.2

D. 31.0

92.Lucas Company has provided the following information:

• Cash flow from operating activities, $360,000

• Net income, $306,000

• Interest expense, $30,000

• Interest cash payments, $20,000

• Income tax payments, $240,000

• Income tax expense, $246,000

What was Lucas' times interest earned ratio? 

A. 18.9

B. 19.4

C. 28.3

D. 31.0

93.Lucas Company has provided the following information:

• Cash flow from operating activities, $360,000

• Net income, $306,000

• Interest expense, $30,000

• Interest cash payments, $20,000

• Income tax payments, $240,000

• Income tax expense, $246,000

What was Lucas' earnings quality ratio? 

A. 0.85

B. 0.74

C. 1.18

D. 0.93

94.Which of the following transactions does not affect earnings per share? 

A. A 2-for-1 common stock split.

B. A 10% common stock dividend distribution.

C. Accruing revenue at year-end.

D. Issuing additional shares of preferred stock.

95.Which of the following transactions increases both the quick ratio and the current ratio assuming that both ratios are greater than 1? 

A. Collecting an account receivable.

B. Purchasing inventory on account.

C. Accruing revenue earned at year-end.

D. Selling inventory on account at the cost of the inventory.

96.Which of the following correctly describes the effect of Mogul Company declaring and distributing a 10% common stock dividend?

A. Mogul's current ratio decreased.

B. Mogul's return on equity ratio decreased.

C. Mogul's debt-to-equity ratio remained the same.

D. Mogul's return on assets decreased.

97.Which of the following does not correctly describe the effect of Mylan Company declaring and distributing a 2-for-1 common stock split? 

A. Mylan's current ratio remained the same.

B. Mylan's return on equity ratio remained the same.

C. Mylan's debt-to-equity ratio remained the same.

D. Mylan's earnings per share remained the same.

98.Which of the following ratios increases when inventory is sold on account for a price equal to its original cost? 

A. Current.

B. Quick.

C. Return on assets.

D. Return on equity.

99.Which of the following ratios increases when cash is collected on an account receivable?

A. Current.

B. Quick.

C. Return on assets.

D. Receivable turnover ratio.

100.Which of the following ratios increases when a company switches from FIFO to LIFO during a period of increasing unit costs?

A. Net profit margin.

B. Inventory turnover.

C. Quick.

D. Current.

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