FINAL EXAM 211

FINAL EXAM ACC 211

1. A company has total assets of $7,160,482, common stock of $2,659,997, retained earnings of $1,401,775. What is the company's equity ratio?

43.28%

34.51%

80.42%

37.15%

56.72%

2.

What would be the account balance in the Service Revenue account after the following transactions, assuming a zero beginning balance?

  

Performed services and left a bill.	$4,800
Performed services and collected immediately.	$3,800
Performed services and billed customer.	$2,350
Performed services on account.	$6,900
Received partial payment on account.	$1,650

$16,200 debit

$17,850 debit

$19,500 credit

$17,850 credit

$16,200 credit

3.

FastForward had cash inflows from operations of $63,900; cash outflows from investing activities of $48,400; and cash inflows from financing of $26,400. The net change in cash was:

$138,700 decrease

$41,900 increase

$138,700 increase

$10,900 increase

$41,900 decrease

4.

On April 30, Holden Company had an Accounts Receivable balance of $21,600. During the month of May, total credits to Accounts Receivable were $61,000 from customer payments. The May 31 Accounts Receivable balance was $15,700. What was the amount of credit sales during May?

$55,100

$37,300

$61,000

$66,900

$5,900

5.

A company has a market value per share of $ 64.00. Its net income is $ 5,000,000 and the weighted-average number of shares outstanding is 500,000. The company's price-earnings ratio is equal to:

10.00

10.9

3.20

6.4

15.63

6.

A company had a fixed interest expense of $7,700, its income before interest expense and any income taxes was $22,330 and its net income was $10,100. The company's times interest earned ratio is equals to

14,630.

1.31.

2.90.

0.34.

0.76.

7. A company had average total assets of $904,000. Its gross sales were $1,139,000 and its net sales were $958,000. The company's total asset turnover is equal to:

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0.94

1.26

1.06

0.79

1.19

8.

Triple Company's accountant made an entry that included the following items: debit postage expense $14.02, debit office supplies expense $28.93, debit cash over/short $3.79. If the original amount in petty cash is $352, how much was the credit to cash for the reimbursement?

$223.

$32.72.

$42.95.

$352.

$46.74.

9.

If a company had net income of $1,496,875, a times interest earned ratio of 4, a tax rate of 40%, and operating income of $3,070,000, what is the company's interest expense for the year?

$1,574,000

$730,079

$1,074,500

$767,500

$374,219

10. On September 30 a company needed to estimate its ending inventory to prepare its third quarter financial statements. The following information is available:

Beginning inventory, July 1: $5,100

Net sales: $51,000

Net purchases: $57,500

The company's gross margin ratio is 20%. Using the gross profit method, the cost of goods sold would be:

$32,000

$37,100

$5,100

$11,600

$40,800

11.

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A company had a bulldozer destroyed by fire. The bulldozer originally cost $126,000. The accumulated depreciation on it was $60,500. The proceeds from the insurance company were $90,500. The company should recognize:
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A loss of $65,500.

A gain of $25,000.

A gain of $90,500.

A gain of $65,500.

A loss of $25,000.

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12.

ABC Co. leased a portion of its store to another company for eight months beginning on October 1, 2014, at a monthly rate of $1,500. This other company paid the entire $12,000 cash on October 1, which ABC Co. recorded as unearned revenue. The journal entry made by ABC Co. at year-end on December 31, 2014, would include:

A debit to Unearned Rent for $7,500.

A debit to Cash for $12,000.

A credit to Rent Earned for $4,500.

A credit to Unearned Rent for $4,500.

A debit to Rent Earned for $4,500.

13.

A company's warehouse was destroyed by a tornado on March 15. The following information was salvaged from the ruins:

Inventory, beginning: $54,000

Purchases for the period: $36,500

Sales for the period: $107,000

Sales returns for the period: $1,390

The company's average gross profit ratio is 35%. What is the estimated cost of the lost inventory?

$90,500

$89,500

$58,825

$52,146.5

$21,853.5

14,

Based on the following information, what would be the balance in the Retained Earnings Account, assuming all accounts have a normal balance?

Cash	$6,824	Dividends	$2,700
Accounts receivable	14,433	Consulting fees earned	14,418
Office supplies	2,695	Rent expense	3,743
Land	37,853	Salaries expense	6,712
Office equipment	15,235	Telephone expense	630
Accounts payable	6,533	Miscellaneous expense	350
Common stock	55,190	Retained Earnings	?

$2,983

$14,135

$14,418

$15,034

$0

15

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A company must repay the bank $22,000 cash in three years for a loan. The loan agreement specifies 8% interest compounded annually. The present value factor for three years at 8% is 0.7938. How much cash did the company receive from the bank on the day they borrowed this money?

$20,240

$27,280

$16,720

$17,464

$22,000

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16.

On December 31 of the current year, a company's unadjusted trial balance included the following: Accounts Receivable, debit balance of $104,774; Allowance for Doubtful Accounts, credit balance of $1,467. What amount should be debited to Bad Debts Expense, assuming 4% of outstanding accounts receivable at the end of the current year are considered uncollectible?

$1,467

$4,191.0

$5,658.0

$2,724.0

$103,307

17

A company had an accounts receivable turnover ratio of 9.6 and net sales of $1,104,000 for a given period. What was the average accounts receivable amount for this period?

Cannot Be Determined.

$9,583.33.

$115,000.

$3,194.44.

$10,598,400.

18

If net income for the period was $139,350, dividends distributed were $78,740 and ending retained earnings was $866,770, what was the beginning retained earnings for the period?

$648,680

$927,380

$727,420

$806,160

$1,084,860

19.

A company had expenses other than cost of goods sold of $65,000. Determine sales and gross profit given cost of goods sold was $32,000 and net income was $74,000.

Sales: $74,000; gross profit: $32,000

Sales: $171,000; gross profit: $139,000

Sales: $171,000; gross profit: $106,000

Sales: $139,000; gross profit: $171,000

Sales: $106,000; gross profit: $171,000

20.

A company plans to decrease a $2,200 petty cash fund to $825.0. The current balance in the account includes $495.0 in receipts and $1,815.0 in currency. The entry to reduce the fund will include a:

Debit to Miscellaneous Expenses for $385.

Credit to Petty Cash for $1,815.

Debit to Cash Short and Over for $110.

Debit to Cash for $990.

Credit to Cash for $990.

21

Assume the following information was available for the current year's operations of the shoe company founded by Blake Mycoskie, TOMS. Use these data to calculate the cash paid for merchandise.

Cost of goods sold	$267,400
Merchandise inventory, January 1	65,600
Merchandise inventory, December 31	70,000
Accounts payable, January 1	63,400
Accounts payable, December 31	70,600

$264,600

$255,800

$270,200

$264,400

$279,000

22

A company had total assets of $1,860,000, total cash flows of $1,340,000, and cash flows from operations of $207,000. The cash flow on total assets ratio is equal to:

8.99%

1.39%

11.13%

72.04%

15.45%

23

A company issues 7%, 20-year bonds with a par value of $1,100,000. The current market rate is 7%. The amount of interest owed to the bondholders for each semiannual interest payment is.

$0

$2,200,000

$1,100,000

$38,500

$77,000

24

A company has 2,000 shares of $100 par preferred stock. It also has 34,000 shares of common stock outstanding and its total stockholders' equity equals $676,000. The book value per common share is:

$19.88

$13.38

$14

$100

$19.11

25

A company has sales of $1,520,000, sales discounts of $104,000, sales returns and allowances of $125,000, shipping charges of $17,000, sales commissions of $36,000, net income of $265,500, and cost of goods sold of $422,000. What is the gross profit/margin for the period?

$1,098,000

$1,202,000

$1,045,000

$869,000

$816,000

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