The following information is available for Oakland Company:
Accounts receivable$ 360,000$ 400,000
Net credit sales 2,470,0001,400,000
Cost of goods sold1,850,0001,060,000
Net income 300,000170,000
The inventory turnover ratio for 2014 is
Swiss Clothing Store had a balance in the Accounts Receivable account of $920,000 at the beginning of the year and a balance of $980,000 at the end of the year. Net credit sales during the year amounted to $6,650,000. The average collection period of the receivables in terms of days was
Assume the following sales data for a company:
If 2011 is the base year, what is the percentage increase in sales from 2011 to 2013?
The current assets of Myers Company are $250,000. The current liabilities are $100,000. The current ratio expressed as a proportion is
2.5 : 1
.25 : 1
$250,000 ÷ $100,000.
Nord Company had $375,000 of current assets and $150,000 of current liabilities before borrowing $70,000 from the bank with a 3-month note payable. What effect did the borrowing transaction have on the amount of Nord Company’s working capital?
If a company has an acid-test ratio of 1.2:1, what respective effects will the borrowing of cash by short-term debt and collection of accounts receivable have on the ratio?
Short-term Borrowing Collection of Receivable
Decrease No effect
Increase No effect
If an item meets one (but not both) of the criteria for an extraordinary item, it
is reported as an “other revenue or gain” or “other expense and loss,” net of tax.
only needs to be disclosed in the footnotes of the financial statements.
is reported at its gross amount as an “other revenue or gain” or “other expense or loss.”
may be treated as sales revenue (if it is a gain) and as an operating expense (if it is a loss).
In ratio analysis, the ratios are never expressed as a
An aircraft company would most likely have
low profit margin.
a high inventory turnover.
a low inventory turnover.
The disposal of a significant component of a business is called
a change in accounting principle.
an extraordinary item.
an other expense.