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Neef Corporation has provided the following financial data from its balance sheet and income statement: Neef Corporation has provided the following financial data from its balance sheet and income statement: The company's gross margin percentage for Year 2 is closest to: A) 59.6% B) 2.5% C) 37.3% D) 4076.9% Neef Corporation has provided the following financial data from its balance sheet and income statement: The company's gross margin percentage for Year 2 is closest to: A) 59.6% B) 2.5% C) 37.3% D) 4076.9% The company's gross margin percentage for Year 2 is closest to:


A) 59.6%
B) 2.5%
C) 37.3%
D) 4076.9%

E) B) and C)
F) None of the above

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Guttery Corporation has provided the following financial data from its balance sheet: Guttery Corporation has provided the following financial data from its balance sheet: Sales on account in Year 2 totaled $1,450,000 and cost of goods sold totaled $900,000. The company's average collection period (age of receivables) for Year 2 is closest to: A) 1.1 days B) 28.2 days C) 1.0 days D) 27.9 days Sales on account in Year 2 totaled $1,450,000 and cost of goods sold totaled $900,000. The company's average collection period (age of receivables) for Year 2 is closest to:


A) 1.1 days
B) 28.2 days
C) 1.0 days
D) 27.9 days

E) A) and B)
F) A) and C)

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Neef Corporation has provided the following financial data from its balance sheet and income statement: Neef Corporation has provided the following financial data from its balance sheet and income statement: The company's net profit margin percentage for Year 2 is closest to: A) 37.3% B) 2.6% C) 1.4% D) 0.9% Neef Corporation has provided the following financial data from its balance sheet and income statement: The company's net profit margin percentage for Year 2 is closest to: A) 37.3% B) 2.6% C) 1.4% D) 0.9% The company's net profit margin percentage for Year 2 is closest to:


A) 37.3%
B) 2.6%
C) 1.4%
D) 0.9%

E) All of the above
F) A) and B)

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Mahoe Corporation has provided the following financial data: Mahoe Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $500.The market price of common stock at the end of Year 2 was $8.06 per share. The company's total asset turnover for Year 2 is closest to: A) 1.25 B) 0.80 C) 6.57 D) 0.15 Mahoe Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $500.The market price of common stock at the end of Year 2 was $8.06 per share. The company's total asset turnover for Year 2 is closest to: A) 1.25 B) 0.80 C) 6.57 D) 0.15 Dividends on common stock during Year 2 totaled $500.The market price of common stock at the end of Year 2 was $8.06 per share. The company's total asset turnover for Year 2 is closest to:


A) 1.25
B) 0.80
C) 6.57
D) 0.15

E) A) and D)
F) All of the above

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Tweedle Corporation's most recent balance sheet and income statement appear below: Tweedle Corporation's most recent balance sheet and income statement appear below: The debt-to-equity ratio at the end of Year 2 is closest to: A) 0.43 B) 0.24 C) 0.17 D) 0.54 Tweedle Corporation's most recent balance sheet and income statement appear below: The debt-to-equity ratio at the end of Year 2 is closest to: A) 0.43 B) 0.24 C) 0.17 D) 0.54 The debt-to-equity ratio at the end of Year 2 is closest to:


A) 0.43
B) 0.24
C) 0.17
D) 0.54

E) B) and C)
F) A) and D)

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Turner Co.presently has a current ratio of 0.8.The company has been informed by its bank that it must improve its current ratio to qualify for a line of credit.Which of the following actions would improve the current ratio?


A) Use cash to pay off some current liabilities.
B) Purchase additional marketable securities with cash.
C) Acquire a parcel of land in exchange for common stock.
D) Purchase additional inventory on credit.

E) A) and C)
F) A) and B)

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Two-Rivers Inc.(TRI)manufactures a variety of consumer products.The company's founders have run the company for thirty years and are now interested in retiring.Consequently,they are seeking a purchaser,and a group of investors is looking into the acquisition of TRI.To evaluate its financial stability,TRI was requested to provide its latest financial statements and selected financial ratios.Summary information provided by TRI is presented below. Two-Rivers Inc.(TRI)manufactures a variety of consumer products.The company's founders have run the company for thirty years and are now interested in retiring.Consequently,they are seeking a purchaser,and a group of investors is looking into the acquisition of TRI.To evaluate its financial stability,TRI was requested to provide its latest financial statements and selected financial ratios.Summary information provided by TRI is presented below. Required: a.Calculate the select financial ratios for the fiscal year Year 2. b.Interpret what each of these financial ratios means in terms of TRI's financial stability and operating efficiency. Two-Rivers Inc.(TRI)manufactures a variety of consumer products.The company's founders have run the company for thirty years and are now interested in retiring.Consequently,they are seeking a purchaser,and a group of investors is looking into the acquisition of TRI.To evaluate its financial stability,TRI was requested to provide its latest financial statements and selected financial ratios.Summary information provided by TRI is presented below. Required: a.Calculate the select financial ratios for the fiscal year Year 2. b.Interpret what each of these financial ratios means in terms of TRI's financial stability and operating efficiency. Two-Rivers Inc.(TRI)manufactures a variety of consumer products.The company's founders have run the company for thirty years and are now interested in retiring.Consequently,they are seeking a purchaser,and a group of investors is looking into the acquisition of TRI.To evaluate its financial stability,TRI was requested to provide its latest financial statements and selected financial ratios.Summary information provided by TRI is presented below. Required: a.Calculate the select financial ratios for the fiscal year Year 2. b.Interpret what each of these financial ratios means in terms of TRI's financial stability and operating efficiency. Required: a.Calculate the select financial ratios for the fiscal year Year 2. b.Interpret what each of these financial ratios means in terms of TRI's financial stability and operating efficiency.

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a.The calculation of selected financial ...

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Financial statements for Maraby Corporation appear below: Financial statements for Maraby Corporation appear below: Maraby Corporation's accounts receivable turnover for Year 2 was closest to: A) 13.5 B) 7.8 C) 11.2 D) 9.4 Financial statements for Maraby Corporation appear below: Maraby Corporation's accounts receivable turnover for Year 2 was closest to: A) 13.5 B) 7.8 C) 11.2 D) 9.4 Maraby Corporation's accounts receivable turnover for Year 2 was closest to:


A) 13.5
B) 7.8
C) 11.2
D) 9.4

E) A) and D)
F) A) and C)

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Dahn Corporation has provided the following financial data: Dahn Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $1,600.The market price of common stock at the end of Year 2 was $2.37 per share. The company's inventory turnover for Year 2 is closest to: A) 6.54 B) 5.67 C) 6.07 D) 0.87 Dahn Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $1,600.The market price of common stock at the end of Year 2 was $2.37 per share. The company's inventory turnover for Year 2 is closest to: A) 6.54 B) 5.67 C) 6.07 D) 0.87 Dividends on common stock during Year 2 totaled $1,600.The market price of common stock at the end of Year 2 was $2.37 per share. The company's inventory turnover for Year 2 is closest to:


A) 6.54
B) 5.67
C) 6.07
D) 0.87

E) B) and C)
F) B) and D)

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Rawdon Corporation's net operating income in Year 2 was $52,429,net income before taxes was $34,429,and the net income was $24,100.Total common stock was $360,000 at the end of both Year 2 and Year 1.The par value of common stock is $4 per share.The company's total stockholders' equity at the end of Year 2 amounted to $976,000 and at the end of Year 1 to $960,000.The company's earnings per share for Year 2 is closest to:


A) $0.58 per share
B) $0.38 per share
C) $0.27 per share
D) $5.84 per share

E) B) and C)
F) None of the above

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Data from Dunshee Corporation's most recent balance sheet appear below: Data from Dunshee Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,170 and the cost of goods sold was $730. The working capital at the end of Year 2 is: A) $270 B) $500 C) $770 D) $740 Sales on account in Year 2 amounted to $1,170 and the cost of goods sold was $730. The working capital at the end of Year 2 is:


A) $270
B) $500
C) $770
D) $740

E) None of the above
F) B) and C)

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Brill Corporation has provided the following financial data: Brill Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $2,100.The market price of common stock at the end of Year 2 was $2.32 per share. Required: a.What is the company's times interest earned for Year 2? b.What is the company's debt-to-equity ratio at the end of Year 2? c.What is the company's equity multiplier at the end of Year 2? d.What is the company's net profit margin percentage for Year 2? e.What is the company's gross margin percentage for Year 2? f.What is the company's return on total assets for Year 2? g.What is the company's return on equity for Year 2? h.What is the company's earnings per share for Year 2? i.What is the company's price-earnings ratio for Year 2? j.What is the company's dividend payout ratio for Year 2? k.What is the company's dividend yield ratio for Year 2? l.What is the company's book value per share at the end of Year 2? Brill Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $2,100.The market price of common stock at the end of Year 2 was $2.32 per share. Required: a.What is the company's times interest earned for Year 2? b.What is the company's debt-to-equity ratio at the end of Year 2? c.What is the company's equity multiplier at the end of Year 2? d.What is the company's net profit margin percentage for Year 2? e.What is the company's gross margin percentage for Year 2? f.What is the company's return on total assets for Year 2? g.What is the company's return on equity for Year 2? h.What is the company's earnings per share for Year 2? i.What is the company's price-earnings ratio for Year 2? j.What is the company's dividend payout ratio for Year 2? k.What is the company's dividend yield ratio for Year 2? l.What is the company's book value per share at the end of Year 2? Dividends on common stock during Year 2 totaled $2,100.The market price of common stock at the end of Year 2 was $2.32 per share. Required: a.What is the company's times interest earned for Year 2? b.What is the company's debt-to-equity ratio at the end of Year 2? c.What is the company's equity multiplier at the end of Year 2? d.What is the company's net profit margin percentage for Year 2? e.What is the company's gross margin percentage for Year 2? f.What is the company's return on total assets for Year 2? g.What is the company's return on equity for Year 2? h.What is the company's earnings per share for Year 2? i.What is the company's price-earnings ratio for Year 2? j.What is the company's dividend payout ratio for Year 2? k.What is the company's dividend yield ratio for Year 2? l.What is the company's book value per share at the end of Year 2?

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a.Times interest earned = Net operating ...

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All other things the same,if long-term debt is exchanged for short-term debt,the debt-to-equity ratio will be unchanged.

A) True
B) False

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A common-size financial statement is a vertical analysis in which each financial statement account is expressed as a percentage.

A) True
B) False

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Degollado Corporation's most recent income statement appears below: Degollado Corporation's most recent income statement appears below: The beginning balance of total assets was $200,000 and the ending balance was $220,000. Required: Compute the return on total assets.Show your work! The beginning balance of total assets was $200,000 and the ending balance was $220,000. Required: Compute the return on total assets.Show your work!

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Average total assets = ($200,000 + $220,...

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Freiman Corporation's most recent balance sheet and income statement appear below: Freiman Corporation's most recent balance sheet and income statement appear below: The acid-test ratio at the end of Year 2 is closest to: A) 0.96 B) 1.36 C) 1.50 D) 1.93 Freiman Corporation's most recent balance sheet and income statement appear below: The acid-test ratio at the end of Year 2 is closest to: A) 0.96 B) 1.36 C) 1.50 D) 1.93 The acid-test ratio at the end of Year 2 is closest to:


A) 0.96
B) 1.36
C) 1.50
D) 1.93

E) B) and C)
F) A) and D)

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Cutsinger Corporation has provided the following data from its most recent income statement: Cutsinger Corporation has provided the following data from its most recent income statement: The times interest earned ratio is closest to: A) 1.83 B) 0.28 C) 1.28 D) 0.19 The times interest earned ratio is closest to:


A) 1.83
B) 0.28
C) 1.28
D) 0.19

E) C) and D)
F) A) and B)

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Dahn Corporation has provided the following financial data: Dahn Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $1,600.The market price of common stock at the end of Year 2 was $2.37 per share. The company's accounts receivable turnover for Year 2 is closest to: A) 0.97 B) 10.38 C) 1.03 D) 10.22 Dahn Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $1,600.The market price of common stock at the end of Year 2 was $2.37 per share. The company's accounts receivable turnover for Year 2 is closest to: A) 0.97 B) 10.38 C) 1.03 D) 10.22 Dividends on common stock during Year 2 totaled $1,600.The market price of common stock at the end of Year 2 was $2.37 per share. The company's accounts receivable turnover for Year 2 is closest to:


A) 0.97
B) 10.38
C) 1.03
D) 10.22

E) All of the above
F) A) and C)

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Wegener Corporation's most recent balance sheet and income statement appear below: Wegener Corporation's most recent balance sheet and income statement appear below: Required: Compute the following for Year 2: a.Working capital. b.Current ratio. c.Acid-test ratio. d.Accounts receivable turnover. e.Average collection period. f.Inventory turnover. g.Average sale period. Wegener Corporation's most recent balance sheet and income statement appear below: Required: Compute the following for Year 2: a.Working capital. b.Current ratio. c.Acid-test ratio. d.Accounts receivable turnover. e.Average collection period. f.Inventory turnover. g.Average sale period. Required: Compute the following for Year 2: a.Working capital. b.Current ratio. c.Acid-test ratio. d.Accounts receivable turnover. e.Average collection period. f.Inventory turnover. g.Average sale period.

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a.Working capital = Current assets - Cur...

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Selling used equipment at book value for cash will:


A) increase working capital.
B) decrease working capital.
C) decrease the debt-to-equity ratio.
D) increase net income.

E) B) and C)
F) B) and D)

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