Question: In using horizontal analysis, comparative reports are:

Answer: Always used

Question: Cost of merchandise sold equals beginning inventory:

Answer: Plus net purchases minus ending inventory

Question: The acid test ratio does not include:

Answer: Inventory

Question: The total debt to total assets of Logan Company was .71. The total of Logan’s assets was $270,000. The amount of total debt is:

Answer: $191,700

Question: Jay Corporation has earned $175,900 after tax. The accountant calculated the return on equity as 12.5%. Jay Corporation’s stockholders’ equity to the nearest dollar is:

Answer: $1,407,200

Question: In analyzing the income statement of Bob Company, cost of goods sold decreased by 8.2% from 2016 to 2017. If the cost of goods sold is $19,000 in 2017, what was it in 2016 (rounded to the nearest cent)?

Answer: $20,697.17

Question: The asset turnover from the following is (round to nearest tenth):

Gross Sales $70,000

Sales discount 2,500

Sales returns and allowances 8,000

Total assets 39,000

Answer: 1.5

Question: Bill’s Pizza has an asset turnover of 3.5. The total assets of Bill’s were $95,000. The net sales of Bill’s Pizza is:

Answer: $332,500.00

Question: Complete the trend analysis for sales for year 3 (Round to nearest tenth percent):

Year 4: $782,143

Year 3: $655,211

Year 2: $605,000

Year 1 (Base year): $646,133

Answer: 101.4%

Question: Complete the current ratio for the following:

Total current assets = $12,000; current liabilities = $10,000

Answer: 1.2