chapter 18 problems

Question 1

Comparisons of data within a company are an example of the following comparative basis:

Answer 1

intracompany

Question 2

Sammy Corporation reported net sales of $300,000, $330,000, and $360,000 in the years, 2012, 2013, and 2014, respectively. If 2012 is the base year, what is the trend percentage for 2014?

Answer 2

120%

Question 3

The following schedule is a display of what type of analysis?

 	Amount	Percent
Current assets	$200,000	25%
Property, plant, & equipment	600,000	75%
Total assets	
$800,000
100%

Answer 3

vertical anaylsis

Question 4

Which of the following measures is an evaluation of a firm’s ability to pay current liabilities?

Answer 4

both acid test and current ratio

Question 5

Financial statement information follows as of the end of each year.

 	2014	2013
Inventory	$54,000	$48,000
Current assets	81,000	106,000
Total assets	382,000	326,000
Current liabilities	27,000	36,000
Total liabilities	102,000	88,000

Compute the current ratio for 2014.

Answer 5

3.0:1

Question 6

A ratio can be expressed in terms of a

Answer 6

percentage, rate, simple proportion

Question 7

Times interest earned is computed by dividing interest expense into

Answer 7

income before taxes and interest expense

Question 8

Scout Corporation has net income of $500,000 and an unrealized gain on available-for-sale securities (net of tax) of $8,500. Comprehensive income would be

Answer 8

508,500

Question 9

Which of the following includes all changes in stockholders’ equity during a period except those resulting from investments by stockholders and distributions to stockholders?

Answer 9

comprehensive income

Question 10

Presentation of comprehensive income must be reported under IFRS in

Answer 10

a statement of comprehensive income.