137.The following financial statement information is available for Houser Corporation:
2014 2013
Inventory$ 44,000$ 43,000
Current assets75,000106,000
Total assets432,000358,000
Current liabilities30,00036,000
Total liabilities102,00088,000
The current ratio for 2014 is
138.The following financial statement information is available for Jackson Corporation:
2014 2013
Net sales$784,000$697,000
Cost of goods sold406,000377,000
Net income115,00080,000
Tax expense50,00029,000
Interest expense15,00014,000
The profit margin for 2014 is
a.14.7%.
b.16.6%.
c.48.2%.
d.12.8%.
139.The following financial statement information is available for Howard Corporation:
2014 2013
Shareholders' equity-ordinary$330,000$270,000
Net sales784,000697,000
Cost of goods sold406,000377,000
Net income115,00080,000
Tax expense50,00029,000
Interest expense15,00014,000
Dividends paid to preference
shareholders22,00020,000
Dividends paid to ordinary
shareholders15,00010,000
The return on ordinary shareholders’ equity for 2014 is
a.26.0%.
b.38.3%.
c.33.3%.
d.31.0%.
140.The following financial statement information is available for Barrett Corporation:
2014 2013
Net income$115,000$ 80,000
Tax expense50,00029,000
Interest expense15,00014,000
Dividends paid to preference
shareholders22,00020,000
Dividends paid to ordinary
shareholders15,00010,000
The times interest earned for 2014 is
a.8.8 times.
b.7.7 times.
c.12.0 times.
d.11.0 times.
141.Davis Corporation reported net income $48,000, net sales $400,000, and average assets $800,000 for 2014. The 2014 profit margin was
a.6%.
b.12%.
c.50%.
d.200%.
142.Gomez Company reports the following amounts for 2014:
Net income$ 150,000
Average shareholders’ equity2,600,000
Preference dividends48,000
Par value preference shares200,000
The 2014 rate of return on ordinary shareholders’ equity is
a.5.1%.
b.5.7%.
c.7.5%.
d.8.3%.
143.Giambi Corporation had beginning inventory $100,000, cost of goods purchased $800,000, and ending inventory $150,000. What was Giambi's inventory turnover?
a.5 times.
b.6.0 times.
c.6.4 times.
d.7.2 times.
144.In 2014 Jackson Corporation reported income from operations $210,000, interest expense $50,000, and income tax expense $40,000. Jackson’s times interest earned was
a.6.0 times.
b.5.2 times.
c.5.0 times.
d.4.2 times.
145.Rasmus Company has income before taxes of $360,000 and a discontinued operations loss of $80,000. If the income tax rate is 30% on all items, the income statement should show income from continuing operations and a discontinued operations loss, respectively, of
a.$360,000 and ($80,000)
b.$252,000 and ($24,000)
c.$252,000 and ($56,000)
d.$108,000 and ($24,000)
146.All of the following statements regarding changes in accounting principle are true
except
a.most changes in accounting principle are retroactively reported.
b.changes in accounting principle are allowed when new principles are preferable to old ones.
c.most changes in accounting principle are only reported in current periods when the principle change takes place.
d.consistency is one of the biggest concerns when a change in accounting principle is undertaken.