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charter oak acc101 midterm exam and final

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Question;he objectives of financial reporting are to provide informationAnswer? Question 20 out of 6.29 points2. Investors and creditors are interested in the probability that their original investment or loan will eventually be returned, and that they will receive a reasonable return while their funds are invested or borrowed. These expectations are collectively referred to as:Answer? Question 36.29 out of 6.29 points3. The basic purpose of generally accepted accounting principles is to:Answer? Question 46.29 out of 6.29 points4. The concept of adequate disclosure means that:Answer? Question 50 out of 6.29 points5. Which of the following is correct if a company purchases equipment for $70,000 cash?Answer? Question 60 out of 6.29 points6. If a transaction causes an asset account to decrease, which of the following related effects may occur?Answer? Question 70 out of 6.29 points7. If cash increases during a year, it must mean that:A) There was positive net income on the income statementB) Retained earnings increasedC) The net worth of a company increased.D) None of the three statements above must necessarily be true.Answer? Question 86.29 out of 6.29 points8. On June 27, Healthy Life Services, Inc. performed extensive tests on lab specimens submitted by several customers and sent invoices totaling $5,200, due in 30 days:Answer? Question 96.29 out of 6.29 points9. Master Equipment has a $17,400 liability to Arrow Paint Co. When Master Equipment makes a partial payment of $7,600 on this liability, which of following is true about the journal entry made by Master to record this transaction?Answer? Question 106.29 out of 6.29 points10. On June 18, Baltic Arena paid $6,600 to Marvin Maintenance, Inc. for cleaning the arena following a monster truck show held on June 9th. This transaction:Answer? Question 116.29 out of 6.29 pointsUse the following to answer questions 11-13:Montauk Oil Co. reports these account balances at December 31, 2010Accounts Payable.................................................. $ 110,000Accounts Receivable.............................................. 100,000Buildings................................................................ 240,000Capital Stock.......................................................... 340,000Cash...................................................................... 80,000Equipment.............................................................. 160,000Land...................................................................... 200,000Notes Payable........................................................ 260,000Retained Earnings.................................................. 70,000On January 2, 2011, Montauk Oil collected $50,000 of its accounts receivable and paid $20,000 on its accounts payable.11. Refer to the above data. In a trial balance prepared at December 31,2010, the total of the debit column is:A) $1,540,000.B) $700,000.C) $1020,000.D) $780,000.Answer? Question 126.29 out of 6.29 pointsUse the following to answer questions 11-13:Montauk Oil Co. reports these account balances at December 31, 2010:Accounts Payable.................................................. $ 110,000Accounts Receivable.............................................. 100,000Buildings................................................................ 240,000Capital Stock.......................................................... 340,000Cash...................................................................... 80,000Equipment.............................................................. 160,000Land...................................................................... 200,000Notes Payable........................................................ 260,000Retained Earnings.................................................. 70,000On January 2, 2011, Montauk Oil collected $50,000 of its accounts receivable and paid $20,000 of its accounts payable.12. Refer to the above data. In a trial balance prepared on January 3, 2011, the total of the debit column is:A) $740,000.B) $1,570,000.C) $760,000.D) $370,000.Answer? Question 136.29 out of 6.29 pointsUse the following to answer questions 11-13:Montauk Oil Co. reports these account balances at December 31, 2010:Accounts Payable.................................................. $ 110,000Accounts Receivable.............................................. 100,000Buildings................................................................ 240,000Capital Stock.......................................................... 340,000Cash...................................................................... 80,000Equipment.............................................................. 160,000Land...................................................................... 200,000Notes Payable........................................................ 260,000Retained Earnings.................................................. 70,000On January 2, 2011, Montauk Oil collected $50,000 of its accounts receivable and paid $20,000 of its accounts payable.13. Refer to the above data. On January 3, 2011, total liabilities are:A) $370,000.B) $350,000.C) $300,000.D) $70,000.Answer? Question 140 out of 6.29 points14. The concept of materiality:Answer? Question 156.286 out of 6.286 points15. As of January 31, Logan Company owes $600 to We-Rent-All for equipment used during January. If no adjustment is made for this item at January 31, how will Logan's financial statements be affected?Answer? Question 166.29 out of 6.29 points16. Rose Corp. has a note receivable from Jewel Co for $80,000. The note matures in 5 years and bears interest of 6%. Rose is preparing financial statements for the month of June. Rose should make an adjusting entry:Answer? Question 176.286 out of 6.286 pointsUse the following to answer questions 17-19:Rockville Company adjusts its accounts at the end of each month. The following information has been assembled in order to prepare the required adjusting entries at December 31:(1) A one-year bank loan of $360,000 at an annual interest rate of 12% had been obtained on December 1.(2) The company's pays all employees up-to-date each Friday. Since December 31 fell on Tuesday, there was a liability to employees at December 31 for two day's pay amounting to $5,900.(3) On December 1 rent on the office building had been paid for four months. Monthly rent is $3,000.(4) Depreciation of office equipment is based on a lifetime of six years. The balance in the Office Equipment account is $7,200, no change has occurred in the account during the year.(5) Fees of $7,600 were earned during the month for clients who had paid in advance.17. What amount of interest expense has accrued on the bank loan?A) $2,400B) $3,000.C) $3,600.D) $4,200.Answer? Question 180 out of 6.29 pointsUse the following to answer questions 17-19:Rockville Company adjusts its accounts at the end of each month. The following information has been assembled in order to prepare the required adjusting entries at December 31:(1) A one-year bank loan of $360,000 at an annual interest rate of 12% had been obtained on December 1.(2) The company's pays all employees up-to-date each Friday. Since December 31 fell on Tuesday, there was a liability to employees at December 31 for two day's pay amounting to $5,900.(3) On December 1 rent on the office building had been paid for four months. Monthly rent is $3,000.(4) Depreciation of office equipment is based on a lifetime of six years. The balance in the Office Equipment account is $7,200, no change has occurred in the account during the year.(5) Fees of $7,600 were earned during the month for clients who had paid in advance.18. By what amount will the book value of the office equipment decline after the appropriate December adjustment is recorded?A) $1,200.B) $0.C) $100.D) Some other amount.Answer? Question 190 out of 6.286 pointsUse the following to answer questions 17-19:Rockville Company adjusts its accounts at the end of each month. The following information has been assembled in order to prepare the required adjusting entries at December 31:(1) A one-year bank loan of $360,000 at an annual interest rate of 12% had been obtained on December 1.(2) The company's pays all employees up-to-date each Friday. Since December 31 fell on Tuesday, there was a liability to employees at December 31 for two day's pay amounting to $5,900.(3) On December 1 rent on the office building had been paid for four months. Monthly rent is $3,000.(4) Depreciation of office equipment is based on a lifetime of six years. The balance in the Office Equipment account is $7,200, no change has occurred in the account during the year.(5) Fees of $7,600 were earned during the month for clients who had paid in advance.19. Failure to make the appropriate adjustment to the Salary Expense account will result in:A) Understating net income for December by $5,900.B) Understating net income for January by $5,900.C) Overstating total liabilities at December 31.D) Overstating the balance in Cash at December 31.Answer? Question 206.286 out of 6.286 pointsUse the following to answer questions 20-21:Shown below is a trial balance for Dependable, Inc., on December 31, after the first year of operations, after adjusting entries:Trial Balance Dependable, Inc.December 31, 2005Cash $ 6,200Accounts receivable 5,100Office equipment 9,000Accumulated Depreciation $ 2,400Accounts payable 3,100Capital Stock 9,000Retained earnings -0-Dividends 3,000Fees earned 18,200Salaries expense 6,400Advertising expense 1,300Depreciation expense 1,700$32,700 $32,70020. Refer to the above data. Net income for the period equals:Answer? Question 210 out of 6.286 points21. Refer to the above data. Retained earnings at December 31 equals,Answer? Question 226.286 out of 6.286 points22. If current assets are $140,000 and current liabilities are $100,000, the current ratio will be:A) 71%.B) $40,000.C) 1:4:1.D) $240,000Answer? Question 236.286 out of 6.286 points23. If current assets are $90,000 and current liabilities are $30,000, working capital will be:A) 33.3%.B) 3:1.C) $60,000.D) $120,000.Answer? Question 246.286 out of 6.286 points24. The following information is available:Sales............................................................ $300,000Net Income.................................................. $ 15,000Retained Earnings......................................... $ 30,000Avg. Stockholders? Equity............................. $100,000Dividends..................................................... $ 5,000What is the return on equity?A) 5%.B) 20%.C) 25%.D) 15%.Answer? Question 256.29 out of 6.29 points25. The cost of delivering merchandise to the customer is:Answer? Question 266.286 out of 6.286 points26. Emily Products uses a perpetual inventory system. At year-end the Inventory account had a balance of $257,000, but a complete year-end physical inventory indicated goods on hand costing only $251,000. Emily should:Answer? Question 270 out of 6.286 points27. At the beginning of the year, California Coat Co. had an inventory of $100,000. During the year, the company purchased merchandise costing $650,000. Net sales for the year totaled $1,000,000, and the gross profit rate was 45%. The cost of goods sold and the ending inventory, respectively, were:Answer? Question 286.286 out of 6.286 points28. At the beginning of 2005, Hudson Hardware has an inventory of $200,000. Because sales growth was strong during 2004, the owner wants to increase inventory on hand to $250,000 at December 31, 2005. If net sales for 2005 are expected to be $1,000,000, and the gross profit rate is expected to be 35%, compute the cost of the merchandise the owner should expect to purchase during 2005.A) $600,000.B) $700,000.C) $900,000.D) Some other amount.Answer? Question 290 out of 6.286 points29. If cost of goods sold is $240,000 and the gross profit rate is 40%, what is the gross profit?A) $160,000B) $560,000C) $240,000D) Some other amount.Answer? Question 300 out of 6.286 points30. In order to achieve internal control over cash receipts:Answer? Question 316.286 out of 6.286 pointsUse the following to answer questions 31-32:The Cash account in the ledger of Novake, Inc. showed a balance of $9,300 at June 30. The bank statement, however, showed a balance of $11,700 at the same date. The only reconciling items consisted of a $2,100 deposit in transit, a bank service charge of $20, and a large number of outstanding checks.31. Refer to the above data. What is the "adjusted cash balance" at June 30?Answer? Question 320 out of 6.286 points32. Refer to the above data. Upon completion of the bank reconciliation, a journal entry will be required to update the depositor's accounting records. This entry will include:Answer? Question 330 out of 6.286 points33. Romeo Inc. had accounts receivable of $250,000 and an allowance for doubtful accounts of $9,700 just before writing off as worthless an account receivable from Juliet Company of $1,500. After writing off this receivable what would be the balance in Romeo's Allowance for Doubtful Accounts?Answer? Question 346.286 out of 6.286 points34. On January 1, Pierce Farms established a petty cash fund of $450, which it replenishes at the end of each month. When a surprise count of the petty cash fund is made on March 5, the petty cash box contains $80 in cash and receipts for the following items:Delivery expense.......................................... $28Typewriter repairs........................................ 45Office supplies............................................. 26This situation indicates:A) Approximately $270 of petty cash has been invested in cash equivalents.B) There were approximately $270 in cash disbursements made from the petty cash fund for the first two months of the year.C) The petty cash expense recognized for the month of March is approximately $270.D) There is approximately $270 of petty cash that is missing and unaccounted for at March 5.Answer? Question 356.286 out of 6.286 points35. Juliet Inc. had accounts receivable of $300,000 and an allowance for doubtful accounts of $18,500 just before writing off as worthless an account receivable from Arrow Company of $1,200. The net realizable values of the accounts receivable before and after the write-off were:A) $281,500 before and $280,300 after.B) $281,500 before and $281,500 after.C) $300,000 before and $298,800 after.D) $318,500 before and $317,300 after.Answerfinal examUse the following to answer questions 1-2:Snappy, Inc. uses a perpetual inventory system. The company's beginning inventory of a particular product and its purchases during the month of January were as follows:Quantity Unit Cost Total CostBeginning inventory (Jan. 1) 15 $ 10 $ 150Purchase (Jan. 11) 10 12 120Purchase (Jan. 20) 18 15 270Total 43 $ 540On January 14, Snappy, Inc. sold 22 units of this product. The other 21 units remained in inventory at January 31.1. Refer to the above data. Assuming that Snappy uses the FIFO flow assumption, the cost of goods sold to be recorded at January 14 is:A) $306.B) $234.C) $318.D) Some other amount.Answer? Question 20 out of 6.286 pointsUse the following to answer questions 1-2:Snappy, Inc. uses a perpetual inventory system. The company's beginning inventory of a particular product and its purchases during the month of January were as follows:Quantity Unit Cost Total CostBeginning inventory (Jan. 1) 15 $ 10 $ 150Purchase (Jan. 11) 10 12 120Purchase (Jan. 20) 18 15 270Total 43 $ 540On January 14, Snappy, Inc. sold 22 units of this product. The other 21 units remained in inventory at January 31.2. Refer to the above data. Assuming that Snappy uses the LIFO flow assumption, the cost of goods sold to be recorded at January 14 is:A) $222.B) $234.C) $318.D) Some other amount.Answer? Question 36.286 out of 6.286 points3. On Saturday, June 30, PK Pool Supplies sold merchandise to John Krock on account. The sales price was $5,300, and the cost of goods sold was $4,200. The sales revenue was recorded immediately, but the entry recording the cost of goods sold was dated Monday, July 2. As a result, net income for June was:A) Overstated by $5,300.B) Overstated by $4,200.C) Overstated by $1,100.D) Not affected, but the net income for July is understated.Answer? Question 46.286 out of 6.286 points4. In a period of rising prices, a company is most likely to use the FIFO method of pricing inventory if:A) Each item in the inventory is unique.B) Management wants the same unit cost assigned to items sold and items remaining in inventory.C) Management's primary objective is to minimize income taxes.D) Management wants the company's income statement to indicate the highest possible amounts of gross profit and net income.Answer? Question 56.286 out of 6.286 points5. Land and a warehouse were acquired for $980,000. What amounts should be recorded in the accounting records for land and for the warehouse if an appraisal showed the estimated values to be $450,000 for the land and $750,000 for the warehouse?A) $450,000 for land, $530,000 for warehouse.B) $367,500 for land, $612,500 for warehouse.C) $450,000 for land, $750,000 for warehouse.D) $230,000 for land, $750,000 for warehouse.Answer? Question 66.286 out of 6.286 points6. Carlson Imports sold a depreciable plant asset for cash of $35,000. The accumulated depreciation amounted to $70,000, and a loss of $5,000 was recognized on the sale. Under these circumstances, the original cost of the asset must have been:A) $65,000.B) $75,000.C) $100,000.D) $110,000.Answer? Question 76.286 out of 6.286 points7. An asset which costs $7,200 and has accumulated depreciation of $1,800 is sold for $4,500. What amount will be recognized when the asset is sold?A) A gain of $900B) A loss of $900C) A loss of $2,700D) A gain of $2,700Answer? Question 86.286 out of 6.286 points8. Which of the following would not be amortized?A) Oil well.B) Copyright.C) Franchise fee.D) Patent.Answer? Question 96.286 out of 6.286 points9. A capital lease is recorded in the accounting records of the lessee by an entry:A) Debiting Rent Expense and crediting Cash each time a lease payment is made.B) Debiting Cash and crediting Rental Revenue each time a lease payment is received.C) Debiting an asset account and crediting a liability account for the present value of the future lease payments.D) Debiting an asset account and crediting Sales for the present value of the future lease payments.Answer? Question 106.286 out of 6.286 points10. Which of the following is an example of a contingent liability?A) A lawsuit pending against a restaurant chain for improper storage of perishable food items.B) The liability for future warranty repairs on computers sold during the current period.C) A corporation's long-term employment contract with its chief executive officer.D) A liability for notes payable with interest included in the face amount.Answer? Question 116.286 out of 6.286 pointsUse the following to answer questions 11-14:On November 1, Year 1, Dale Co. borrowed $50,000 from Town Bank and signed a 12%, six-month note payable, all due at maturity. The interest on this loan is stated separately.11. Refer to the above data. How much must Dale pay Town Bank on May 1, Year 2, when the note matures?A) $50,000.B) $56,000.C) $53,000.D) $52,000.Answer? Question 126.286 out of 6.286 pointsUse the following to answer questions 11-14:On November 1, Year 1, Dale Co. borrowed $50,000 from Town Bank and signed a 12%, six-month note payable, all due at maturity. The interest on this loan is stated separately.12. Refer to the above data. How much interest expense will Dale recognize on this note in Year 2?A) $6,000.B) $3,000.C) $1,500.D) $2,000.Answer? Question 136.286 out of 6.286 points13. Refer to the above data. At December 31, Year 1, Dale Co.'s overall liability for this loan amounts to:A) $50,000.B) $51,000.C) $52,000.D) $53,000.Answer? Question 146.286 out of 6.286 points14. Tivoli Corporation issued 300,000 shares of $4 par value common stock at the time of its incorporation. The stock was issued for cash at a price of $15 per share. During the first year of operations, the company sustained a net loss of $100,000. The year-end balance sheet would show the balance of the Common Stock account to be:A) $1,200,000.B) $1,100,000.C) $4,500,000.D) $4,400,000.Answer? Question 156.286 out of 6.286 points15. If the preferred stock of a corporation is cumulative:A) Dividends on preferred stock are guaranteed.B) Dividends cannot be declared in an amount less than that stated on the stock certificate.C) Preferred stockholders participate in dividends paid in excess of a stated amount on the common shares.D) Dividends in arrears must be paid on preferred stock before any dividend can be paid on common stock.Answer? Question 166.286 out of 6.286 points16. Treasury stock should most often be recorded:A) At cost.B) Par value.C) Fair market value at year end.D) Face value.Answer? Question 176.29 out of 6.29 points17. From the viewpoint of stockholders or potential investors, which of the following cash flow measurements would be of least importance?A) The dollar amount of net cash flow from operating activities for the current year.B) The trend in net cash flow from operating activities from year to year.C) The corporations's free cash flow for the current year.D) The dollar amount of overall increase or decrease in cash for the current year.Answer? Question 186.29 out of 6.29 points18. When net cash flow from operating activities is presented by the direct method, the statement of cash flows is accompaned by a supplementary schedule reconciling:A) Net cash flow from operating activities with net sales.B) Net income with the net increase or decrease in cash and cash equivalents.C) Net Income with net cash flow from operating activities.D) Net cash flow from operating activities shown in the statement with that which would result from use of the indirect method.Answer? Question 196.286 out of 6.286 points19. During the year 2007, Moonglow Corporation suffered a $600,000 loss when its factory was destroyed in a flood. Assuming the corporate income tax rate is 34%, what amount will Moonglow report as an extraordinary loss on its income statement for 2007? Assume floods are not common in this area.A) $600,000B) $396,000C) $204,000.D) Nothing, since this does not qualify as an extraordinary item.Answer? Question 206.286 out of 6.286 points20. Which of the following would be classified as an extraordinary item?A) A large gift given to the company.B) A loss from obsolete inventory.C) A loss from a natural disaster that affects the company at infrequent intervals.D) A loss from an enacted law that made inventory unsalable.AnswerDD? Question 216.286 out of 6.286 points21. On January 1, 2006, Lane Corporation had 50,000 shares of $5 par value common stock outstanding. On March 31, 2006, Lane issued an additional 8,000 shares in exchange for a building. What number of shares will be used in the computation of basic EPS for the year 2006?A) 50,000.B) 58,000.C) 56,000.D) 52,000.Answer? Question 226.286 out of 6.286 points22. Foster Company reports net income of $290,000 for 2006 and declared a cash dividend of $1 per share on each of its 100,000 shares of common stock outstanding. Earnings per share for 2006 is:A) $2.90 per share.B) $1.00 per share.C) $0.90 per share.D) $1.90 per share.Answer? Question 236.286 out of 6.286 points23. Windsor Corporation's 2006 net income is smaller than net cash flow from operating activities. Which of the following would not be an explanation of why net income is smaller than net cash flow from operating activities?A) Windsor paid dividends to shareholders during 2006.B) Windsor's accounts payable increased during 2006.C) Windsor recognized depreciation expense in 2006.D) Windsor sold equipment at a loss in 2006.Answer? Question 246.286 out of 6.286 points24. Early in 2006, Platt Corporation purchased marketable securities at a cost of $70,000. In September, dividends of $4,700 were received, Platt sold the securities in December at a gain of $3,500. How would these transactions be reported on Platt's statement of cash flows for 2006?A) $3,500 net cash provided by investing activities, $4,700 included in cash provided by operating activities.B) $8,200 net cash provided by investing activities.C) $78,200 cash provided by investing activities, $70,000 cash used in financing activities.D) $65,300 net cash used in investing activities, $73,500 cash provided by investing activities.Answer? Question 256.286 out of 6.286 points25. The accountant for Earth Institute, Inc., determined the cash flow for several transactions to be as follows:Payment to pay off notes payable.......................................... $175,000Proceeds from issuance of bonds payable.............................. 615,000Payment to purchase equipment............................................ 255,000Payment of wages................................................................ 95,000Payment of dividends............................................................ 135,000On the basis of the above transactions alone, determine the net cash flow from financing activities.A) $255,000 net cash used for financing activities.B) $440,000 net cash provided by financing activities.C) Zero: cash inflows equal cash outflows from financing activities.D) $305,000 net cash provided by financing activities.Answer? Question 266.286 out of 6.286 points26. All of the following are considered cash equivalents exceptA) Marketable securitiesB) Money market fundsC) Commercial paperD) Treasury billsAnswer? Question 276.286 out of 6.286 points27. A stock dividend is reported on theA) Financing section of the statement of cash flowsB) Balance sheetC) Income statementD) Operating section of the statement of cash flowsAnswer? Question 286.286 out of 6.286 points28. A statement of cash flows is not intended to assist investors in evaluating:A) Reasons for differences between the amount of net income and net cash flow from operations.B) The company's ability to meet its obligations and to pay dividends.C) Noncash aspects of investing and financing activities.D) The profitability of business operations.Answer? Question 296.286 out of 6.286 pointsUse the following to answer questions 29-31:Shown below are selected data from the balance sheet of HiTech, a small electronics store (dollar amounts are in thousands):Cash.................................................................................... $25Accounts receivable............................................................. 45Inventory............................................................................. 80Total assets.......................................................................... 400Current liabilities................................................................... 100Non current liabilities............................................................ 24029. Refer to the above data. The quick ratio is:A) 1.5 to 1.B).7 to 1.C).45 to 1.D) Some other amount.Answer? Question 306.286 out of 6.286 pointsUse the following to answer questions 29-31:Shown below are selected data from the balance sheet of HiTech, a small electronics store (dollar amounts are in thousands):Cash.................................................................................... $25Accounts receivable............................................................. 45Inventory............................................................................. 80Total assets.......................................................................... 400Current liabilities................................................................... 100Non current liabilities............................................................ 24030. Refer to the above data. The current ratio is:A) 5.0 to 1.B) 1.5 to 1.C).7 to 1.D) Some other amount.Answer? Question 316.286 out of 6.286 pointsUse the following to answer questions 29-31:Shown below are selected data from the balance sheet of HiTech, a small electronics store (dollar amounts are in thousands):Cash.................................................................................... $25Accounts receivable............................................................. 45Inventory............................................................................. 80Total assets.......................................................................... 400Current liabilities................................................................... 100Non current liabilities............................................................ 24031. Refer to the above data. Hi-Tech's debt ratio is:A) 85%.B) 25%.C) 60%.D) Some other amount.Answer? Question 326.286 out of 6.286 pointsUse the following to answer questions 32-35:Shown below are selected data from the financial statements of A-l Computers. (Dollar amounts are in millions, except for the per-share data.)Income statement data:Net sales...................................................................... $2,500Cost of goods sold........................................................ 1,300Operating expenses...................................................... 400Net income.................................................................. 75Balance sheet data:Average total equity....................................................... 300Average total assets...................................................... 4,000Per share data (these amounts stated in actual dollars, not millions):A-1 reported earnings per share for the year of $4 and paid cash dividends of $1.50 per share. At year-end, the Wall Street Journal listed A-1's capital stock as trading at $48 per share.32. Refer to the above data. A-1's price/earnings ratio at year-end was:A).8.B) 12.C) 24.D) Some other amount.Answer? Question 336.286 out of 6.286 pointsUse the following to answer questions 32-35:Shown below are selected data from the financial statements of A-l Computers. (Dollar amounts are in millions, except for the per-share data.)Income statement data:Net sales...................................................................... $2,500Cost of goods sold........................................................ 1,300Operating expenses...................................................... 400Net income.................................................................. 75Balance sheet data:Average total equity....................................................... 300Average total assets...................................................... 4,000Per share data (these amounts stated in actual dollars, not millions):A-1 reported earnings per share for the year of $4 and paid cash dividends of $1.50 per share. At year-end, the Wall Street Journal listed A-1's capital stock as trading at $48 per share.33. Refer to the above data. A-1's gross profit rate was:A) 20%.B) 48%.C) 52%.D) Some other amount.Answer? Question 346.286 out of 6.286 pointsUse the following to answer questions 32-35:Shown below are selected data from the financial statements of A-l Computers. (Dollar amounts are in millions, except for the per-share data.)Income statement data:Net sales...................................................................... $2,500Cost of goods sold........................................................ 1,300Operating expenses...................................................... 400Net income.................................................................. 75Balance sheet data:Average total equity....................................................... 300Average total assets...................................................... 4,000Per share data (these amounts stated in actual dollars, not millions):A-1 reported earnings per share for the year of $4 and paid cash dividends of $1.50 per share. At year-end, the Wall Street Journal listed A-1's capital stock as trading at $48 per share.34. Refer to the above data. A-1's operating income was:A) $1,200.B) $400.C) $800.D) Some other amount.Answer? Question 356.286 out of 6.286 pointsUse the following to answer questions 32-35:Shown below are selected data from the financial statements of A-l Computers. (Dollar amounts are in millions, except for the per-share data.)Income statement data:Net sales...................................................................... $2,500Cost of goods sold........................................................ 1,300Operating expenses...................................................... 400Net income.................................................................. 75Balance sheet data:Average total equity....................

 

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