1. Assume the following sales data for a company:
2022 $1000000
2021 $822250
2020 $ 650000
If 2020 is the base year, what is the percentage increase in sales from 2020 to 2021?
A. 154%
B. 127%
C. 549%
D. 27%
2. Assume the following sales data for a company:
2022 $980000
2021 $806400
2020 $ 640000
If 2020 is the base year, what is the percentage increase in sales from 2020 to 2021?
A. 269%
B. 126%
C. 153%
D. 53%
3. Comparisons of data within a company are an example of the following comparative basis
A. interregional
B. intercompany.
C. industry averages.
D. intracompany.
4. In a common size balance sheet, the 100 percent figure is
A. total property, plant and equipment.
B. total assets.
C. total liabilities.
D. total current assets.
5. Coronado Corporation, Inc. has the following income statement (in millions):
Coronado Corporation, Inc. Income Statement
For the Year Ended December 31, 2021
Net Sales $210
Cost of Goods Sold 126
Gross Profit 84
Operating Expenses 60
Net Income $24
Using vertical analysis, what percentage is assigned to net income?
A. 100%
B. 84%
C. 11%
D. 18%
6. Given the following data for the Crane Company:
Current liabilities $300
Long-term debt 300
Common stock 600
Retained earnings 2400
Total liabilities & stockholders’ equity $3600
How would common stock appear on a common size balance sheet?
A. 9%
B. 59%
C. 17%
D. 19%
7. Coronado Clothing Store had a balance in the Accounts Receivable account of $769000 at the beginning of the year and a balance of $842000 at the end of the year. Net credit sales during the year amounted to $11760300. The average collection period of the accounts receivable in terms of days was
A. 144 days.
B. 50.0 days.
C. 26.1 days.
D. 25.0 days.
8. Oriole Corporation had net credit sales of $13200000 and cost of goods sold of $9440000 for the year. The average inventory for the year amounted to $1475000. The inventory turnover for the year is
A. 6.4 times.
B. 8.9 times.
C. 2.5 times.
D. 1.4times.
9. Sheridan Company reported the following on its income statement:
Income before income taxes $427000
Income tax expense 114000
Net income $313000
An analysis of the income statement revealed that interest expense was $50000. Sheridan Company’s times interest earned was
A. 7.54 times
B. 10.82 times.
C. 9.54 times.
D. 6.26 times.
10. The following information pertains to The Crane Boutique Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.
What is the current ratio for this company?
A. 2.05
B. 0.8
C. 1.79
D. 0.5