31) The net income for the year ended was $300,000. Common shareholders' equity at the end of the year was $1,600,000 and $1,400,000 at the beginning of the year. The return on common shareholders'...





31) The net income for the year ended was $300,000. Common shareholders' equity at the end of the year was $1,600,000 and $1,400,000 at the beginning of the year. The return on common shareholders' equity would be __________.







32) Rick's has a cash balance of $80,000; short-term investments of $20,000; net receivables of $60,000; and inventory of $450,000. Current liabilities total $200,000. Ricks' acid test (quick ratio) is within __________.







33) Topiary's Unlimited has a cost of goods sold of $1,600,000. The beginning merchandise inventory was $195,000 and the ending merchandise inventory is $205,000. Topiary's merchandise inventory turnover ratio is __________.







34) Amanda's has a cost of goods sold of $1,900,000. The beginning and ending merchandise inventories are $133,000 and $125,000, respectively. Amanda's merchandise inventory turnover ratio is __________.





35) Interest expense was $10,000; income tax expense was $20,000; and net income after taxes is $60,000. The number of times interest was earned is __________.







36) 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?







37) 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 shareholders' equity is $86,000?







38) Casey Company reported the following for 2010:



Net sales: $345,000



Net income: $29,600



Market price per common share: $35.50



Preferred dividends paid: $2,300



Number of common shares outstanding: 125,000





What are the earnings per share for Casey Company (to the nearest cent)?





39) Casey Company reported the following for 2011:



Net sales: $220,000



Net income: $37,000



Market price per common share: $35.50



Preferred dividends paid: $4,100



Number of common shares: 10,000





What are the earnings per share for Casey Company (to the nearest cent)?







40) Michele Company reported the following for 2010:



Earnings/share of $19.23



Market price per common share: $67.00



Number of common shares outstanding: 75,000



Net income: $54,000



Preferred dividends paid: $2,200



Dividends/share: $6.73





What is the dividend yield for Michele Company (to the nearest tenth of a percent)?









41) What would an acid test (quick ratio) of 0.75 indicate?





42) Tammy Company has a beginning accounts receivable balance of $65,000 and an ending accounts receivable balance of $60,000. Net credit sales are $250,000. Tammy's accounts receivable turnover rate is __________.







43) 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 __________.







44) With a beginning accounts receivable balance of $80,000; an ending accounts receivable balance of $120,000; and net credit sales of $900,000; the accounts receivable turnover is __________.







May 15, 2022
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