1. Patty's Baker has cost of goods sold for the years 2011, 2010, and 2009, respectively, of $28,600, $26,900,

1. Patty's Baker has cost of goods sold for the years 2011, 2010, and 2009, respectively, of $28,600, $26,900, and $25,600. If 2009 is the base year, the trend percentage for 2011 is

A. 5.08%.

B. 105.08%.

C. 111.72%    

D. 11.72%.

2. The Amanda Corporation Stockholders' Equity section includes the following information:

Preferred Stock$12,000

Paid-in Capital in Excess of Par— Preferred2,700

Common Stock15,000

Paid-in Capital in Excess of Par— Common4,100

Retained Earnings8,200

What was the total selling price of the preferred stock?

A. $16,100

B. $14,700  

C. $12,000

D. $20,200

3. Casey Company reported net income of $35,000; depreciation expenses of $20,000; an increase in accounts payable of $2,000; and an increase in current notes receivable of $3,000. Net cash flows from operating activities under the indirect method is

A. $54,000.   

B. $56,000. 

C. $50,000. 

D. $55,000.

4. What are the rate of return on stockholders' equity and the rate of return on common stockholders' equity (rounded to the nearest one-tenth of a percent) given the following information:

Net Income$350,000

Preferred Dividends20,000

Common Stock48,000

Common Stockholders’ Equity 1/1/2011 4,400,000

Total Stockholders’ Equity 1/1/20115,300,000

Total Stockholders’ Equity 12/31/2011  5,500,000

A. Return on Stockholders' Equity: 8.1 %; Return on Common Stockholders' Equity: 9.2% 

B. Return on Stockholders' Equity: 7.8 %; Return on Common Stockholders' Equity: 8.9% 

C. Return on Stockholders' Equity: 5.6 %; Return on Common Stockholders' Equity: 6.7% 

D. Return on Stockholders' Equity: 6.5 %; Return on Common Stockholders' Equity: 7.6%

5. Casey Company has an accounts receivable turnover of 36 days, an inventory turnover of 77 days, and an accounts payable turnover of 40 days. Casey's cash conversion cycle is   ___day(s).

A. 73   

B. 1

C. 153

D. 81

6. The Isaiah Corporation Stockholders' Equity section includes the following information:

Preferred Stock$22,000

Paid-in Capital in Excess of Par—Preferred2,980

Common Stock48,000

Paid-in Capital in Excess of Par—Common3,400

Retained Earnings7,350

Total par value of the preferred and common stock is

A. $70,000.    

 B. $76,380. 

C. $83,730. 

D. $77,350.

7. Which activities are computed differently using the two methods of formatting a statement of cash flows?

A. Investing activities

B. Financing activities

C. Both operating activities and investing activities

D. Operating activities

8. For vertical analysis purposes, the base item on the income statement is

A. total expenses.

B. net sales.

C. gross profit.

D. net income.

9. Ryan Industries has an inventory turnover of 112 days, an accounts payable turnover of 73 days, and an

 accounts receivable turnover of 82 days. Ryan's cash conversion cycle is ___ days.

A. 9

B. 103

C. 43

D. 121  

10. Casey Company has 5,000 shares of treasury cost that it purchased for $13 per share. It later resold

2,000 of those shares for $17 per share. The amount to be credited to Paid-in Capital—Treasury Stock is

A. $34,000.

B. $30,000.

C. $26,000.

D. $8,000.  

11. Net sales at Kelly's Bakery increased from $40,000 to $60,000, and its cost of goods sold increased from $20,000 to $40,000. Vertical analysis based on net sales would show which percentages for cost of goods sold (rounded to the nearest %)?

A. 50% and 67%    

B. 10% and 30%

C. 67% and 40% 

D. 40% and 20%

12. Birch issued 200 shares of $12 par common stock in exchange for a piece of equipment with a current market value of $3,000. Which of the following is not part of the journal entry for this transaction?

A. Crediting common stock for $2,400

B. Crediting paid-in capital in excess of par common for $600

C. Debiting equipment for $3,000

D. Crediting common stock for $3,000

13. What is Jane's rate of return on total assets if average total assets are $100,000; net income is $2,000;

interest expense if $1,600; and income tax is $2,000?

A. 5.2% 

B. 4.6% 

C. 3.6% 

D. 5.6%   

14. What is the rate of return on equity if net income is $22,700; preferred dividends are $3,000; sales are

$100,000; and average common stockholders' equity is $86,000?

A. 86.0% 

B. 22.7% 

C. 22.9%   

D. 26.4%

15. Operating expenses—other than depreciation—for the year were $335,000. Prepaid expenses decreased by $7,000. Cash payments for operating expenses to be reported on the cash flow statement using the direct method would be

A. $342,000.

B. $7,000.

C. $335,000.

D. $328,000.   

16. Accounts receivable amounted to $215,000 at the beginning of the year and $245,000 at the end of the year. Income reported on the income statement for the year was $300,000. The cash flow from operating activities on the cash flow statement using the indirect method is

A. $315,000.

 B. $300,000. 

C. $330,000.

 D. $270,000.    

17. If total assets are $6,000, what is the common-size figure of cash, assuming that cash has a balance of

$2,400?

A. 60.0% 

B. 120.0% 

C. 40.0%  

D. 100.0%

18. To determine why net income and cash on the balance sheet don't equal, an accountant can prepare a/an

A. statement of cash flows.

B. statement of retained earnings.

C. balance sheet.

D. income statement.

19. A company has $56,000 in cash; $12,000 in accounts receivable; $25,000 in short-term investments; and $100,000 in merchandise inventory. The company also has $60,000 in current liabilities. The company's quick ratio is

A. 1.550   

B. 0.933.

 C. 1.133. 

D. 3.217.

20. Tammy Corporation has 350,000 shares of $3 par common stock outstanding. It has declared a 5% stock dividend. The current market price of the common stock is $7.50/share. The amount that will be debited to retained earnings on the date of declaration is

A. $78,750.

B. $131,250. 

C. $183,750.

D. $52,500.