ACC 211 final exam

FINAL EXAM ACC 211 1. A company has total assets of $7,160,482, common stock of $2,659,997, retained earnings of $1,401,775. What is the company's equity ratio? 43.28% 34.51% 80.42% 37.15% 56.72% 2. What would be the account balance in the Service Revenue account after the following transactions, assuming a zero beginning balance? Performed services and left a bill. $4,800 Performed services and collected immediately. $3,800 Performed services and billed customer. $2,350 Performed services on account. $6,900 Received partial payment on account. $1,650 $16,200 debit $17,850 debit $19,500 credit $17,850 credit $16,200 credit 3. FastForward had cash inflows from operations of $63,900; cash outflows from investing activities of $48,400; and cash inflows from financing of $26,400. The net change in cash was: $138,700 decrease $41,900 increase $138,700 increase $10,900 increase $41,900 decrease 4. On April 30, Holden Company had an Accounts Receivable balance of $21,600. During the month of May, total credits to Accounts Receivable were $61,000 from customer payments. The May 31 Accounts Receivable balance was $15,700. What was the amount of credit sales during May? $55,100 $37,300 $61,000 $66,900 $5,900 5. A company has a market value per share of $ 64.00. Its net income is $ 5,000,000 and the weighted-average number of shares outstanding is 500,000. The company's price-earnings ratio is equal to: 10.00 10.9 3.20 6.4 15.63 6. A company had a fixed interest expense of $7,700, its income before interest expense and any income taxes was $22,330 and its net income was $10,100. The company's times interest earned ratio is equals to 14,630. 1.31. 2.90. 0.34. 0.76. 7. A company had average total assets of $904,000. Its gross sales were $1,139,000 and its net sales were $958,000. The company's total asset turnover is equal to: rev: 04_07_2014_QC_47969 0.94 1.26 1.06 0.79 1.19 8. Triple Company's accountant made an entry that included the following items: debit postage expense $14.02, debit office supplies expense $28.93, debit cash over/short $3.79. If the original amount in petty cash is $352, how much was the credit to cash for the reimbursement? $223. $32.72. $42.95. $352. $46.74. 9. If a company had net income of $1,496,875, a times interest earned ratio of 4, a tax rate of 40%, and operating income of $3,070,000, what is the company's interest expense for the year? $1,574,000 $730,079 $1,074,500 $767,500 $374,219 10. On September 30 a company needed to estimate its ending inventory to prepare its third quarter financial statements. The following information is available: Beginning inventory, July 1: $5,100 Net sales: $51,000 Net purchases: $57,500 The company's gross margin ratio is 20%. Using the gross profit method, the cost of goods sold would be: $32,000 $37,100 $5,100 $11,600 $40,800 11. A company had a bulldozer destroyed by fire. The bulldozer originally cost $126,000. The accumulated depreciation on it was $60,500. The proceeds from the insurance company were $90,500. The company should recognize: rev: 11_18_2013_QC_40459 A loss of $65,500. A gain of $25,000. A gain of $90,500. A gain of $65,500. A loss of $25,000. 12. ABC Co. leased a portion of its store to another company for eight months beginning on October 1, 2014, at a monthly rate of $1,500. This other company paid the entire $12,000 cash on October 1, which ABC Co. recorded as unearned revenue. The journal entry made by ABC Co. at year-end on December 31, 2014, would include: A debit to Unearned Rent for $7,500. A debit to Cash for $12,000. A credit to Rent Earned for $4,500. A credit to Unearned Rent for $4,500. A debit to Rent Earned for $4,500. 13. A company's warehouse was destroyed by a tornado on March 15. The following information was salvaged from the ruins: Inventory, beginning: $54,000 Purchases for the period: $36,500 Sales for the period: $107,000 Sales returns for the period: $1,390 The company's average gross profit ratio is 35%. What is the estimated cost of the lost inventory? $90,500 $89,500 $58,825 $52,146.5 $21,853.5 14, Based on the following information, what would be the balance in the Retained Earnings Account, assuming all accounts have a normal balance? Cash $6,824 Dividends $2,700 Accounts receivable 14,433 Consulting fees earned 14,418 Office supplies 2,695 Rent expense 3,743 Land 37,853 Salaries expense 6,712 Office equipment 15,235 Telephone expense 630 Accounts payable 6,533 Miscellaneous expense 350 Common stock 55,190 Retained Earnings ? $2,983 $14,135 $14,418 $15,034 $0 15 A company must repay the bank $22,000 cash in three years for a loan. The loan agreement specifies 8% interest compounded annually. The present value factor for three years at 8% is 0.7938. How much cash did the company receive from the bank on the day they borrowed this money? $20,240 $27,280 $16,720 $17,464 $22,000 16. On December 31 of the current year, a company's unadjusted trial balance included the following: Accounts Receivable, debit balance of $104,774; Allowance for Doubtful Accounts, credit balance of $1,467. What amount should be debited to Bad Debts Expense, assuming 4% of outstanding accounts receivable at the end of the current year are considered uncollectible? $1,467 $4,191.0 $5,658.0 $2,724.0 $103,307 17 A company had an accounts receivable turnover ratio of 9.6 and net sales of $1,104,000 for a given period. What was the average accounts receivable amount for this period? Cannot Be Determined. $9,583.33. $115,000. $3,194.44. $10,598,400. 18 If net income for the period was $139,350, dividends distributed were $78,740 and ending retained earnings was $866,770, what was the beginning retained earnings for the period? $648,680 $927,380 $727,420 $806,160 $1,084,860 19. A company had expenses other than cost of goods sold of $65,000. Determine sales and gross profit given cost of goods sold was $32,000 and net income was $74,000. Sales: $74,000; gross profit: $32,000 Sales: $171,000; gross profit: $139,000 Sales: $171,000; gross profit: $106,000 Sales: $139,000; gross profit: $171,000 Sales: $106,000; gross profit: $171,000 20. A company plans to decrease a $2,200 petty cash fund to $825.0. The current balance in the account includes $495.0 in receipts and $1,815.0 in currency. The entry to reduce the fund will include a: Debit to Miscellaneous Expenses for $385. Credit to Petty Cash for $1,815. Debit to Cash Short and Over for $110. Debit to Cash for $990. Credit to Cash for $990. 21 Assume the following information was available for the current year's operations of the shoe company founded by Blake Mycoskie, TOMS. Use these data to calculate the cash paid for merchandise. Cost of goods sold $267,400 Merchandise inventory, January 1 65,600 Merchandise inventory, December 31 70,000 Accounts payable, January 1 63,400 Accounts payable, December 31 70,600 $264,600 $255,800 $270,200 $264,400 $279,000 22 A company had total assets of $1,860,000, total cash flows of $1,340,000, and cash flows from operations of $207,000. The cash flow on total assets ratio is equal to: 8.99% 1.39% 11.13% 72.04% 15.45% 23 A company issues 7%, 20-year bonds with a par value of $1,100,000. The current market rate is 7%. The amount of interest owed to the bondholders for each semiannual interest payment is. $0 $2,200,000 $1,100,000 $38,500 $77,000 24 A company has 2,000 shares of $100 par preferred stock. It also has 34,000 shares of common stock outstanding and its total stockholders' equity equals $676,000. The book value per common share is: $19.88 $13.38 $14 $100 $19.11 25 A company has sales of $1,520,000, sales discounts of $104,000, sales returns and allowances of $125,000, shipping charges of $17,000, sales commissions of $36,000, net income of $265,500, and cost of goods sold of $422,000. What is the gross profit/margin for the period? $1,098,000 $1,202,000 $1,045,000 $869,000 $816,000 12
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