Which is NOT a result of capitalizing interest in the current period? a. Capitalized interest does...
| Which is NOT a result of capitalizing interest in the current period? | |
| a. | Capitalized interest does not affect net income |
| b. | total asset increases at the time of interest capitalization |
| c. | Future expenses will reduce |
| d. |
Future expenses will increase |
| . Which of the following is a driver of asset turnover? | |||
| a. | Accounts receivable turnover | ||
| b. | Inventory turnover | ||
| c. | Long-term asset turnover | ||
| d. | All of the above. | ||
Homework Answers
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Which is NOT a result of capitalizing interest in the current
period?
a.
Capitalized interest does...
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Which of the following would not be considered an intangible asset? goodwill patent copyright inventory Which of the following statements about capitalizing costs is correct? Capitalizing costs refers to the process of converting assets to expenses. Only the purchase price of the asset is capitalized. Capitalizing a cost means to record it as an asset. Capitalizing costs results in an immediate decrease in net income. If a company capitalizes costs that should be expensed, how is its income statement for...
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Interest costs can be capitalized on interest incurred during the period of construction on loans for self-constructed assets. interest incurred on notes payable used to purchase inventory for resale. interest incurred on installment loans secured by assets currently used in operations. none of these choices; interest charges must always be expensed. Companies record depreciation on equipment to bring the asset's book value to its fair market value. allocate its cost to expense over its useful life. recognize gains in its...
QUESTION 4 As a barometer of short-term liquidity the current ratio is limited by the nature...
QUESTION 4 As a barometer of short-term liquidity the current ratio is limited by the nature of its components. All of the following are reasons that this is true except: C A firm could have a high current ratio but not be able to meet demands for cash because inventory is salable only at discounted rices. C The balance sheet is prepared as of a particular date and the actual amount of liquid assets may vary considerably from the date...
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Problem 4-33 Clyde’s Well Servicing has the following financial statements. The balance sheet items, profit margin, and dividend payout have maintained the same relationships the past couple of years; these relationships are anticipated to hold in the future. Clyde’s has excess capacity, so there is no expected increase in capital assets. Income Statement Sales $2,000,000 Cost of goods sold 1,260,000 Gross profit 740,000 Selling and administrative expense 400,000 Amortization 55,000 Earnings before interest and taxes 285,000 Interest 50,000 Earnings before...
Current ratio = 2.6 times Credit sales $1,314m Average collection period 50 days Inventory turnover 1.50...
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13. If a firm's accounts receivable turnover equals 8 times, its average collection period is approximately...
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In the discussion on Discounted Cash Flow which was NOT one of the reasons given for...
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Accounts Receivable and Inventory Ratios Ritter Company, whose current assets at December 31 are shown below,...
Accounts Receivable and Inventory Ratios Ritter Company, whose current assets at December 31 are shown below, had net sales for the year of $850,000 and cost of goods sold of $550,000. At the beginning of the year, Ritter’s accounts receivable (net) were $160,000 and its inventory was $175,000. Cash $32,000 Short-term investments 49,300 Accounts receivable (net) 170,000 Inventory 200,000 Prepaid expenses 11,600 Current assets $462,900 Instructions: Round turnover ratios to two decimal places. Use rounded turnover ratios to compute respective...
i will thumbs up!! thank you so much! a real life saver 44. Leah Co. had...
i will thumbs up!! thank you so much! a real life saver
44. Leah Co. had the following ratio information: Current Year Prior Year Inventory Turnover 5.5 6.3 Accounts Receivable Turnover 13.3 14.1 Which of the following is false a) Leah Co may be experiencing a decline in the quality of credit customers b) Leah Co. has improved their liquidity c) It is taking Leah Co. longer to collect cash from accounts receivable d) Leah Co is becoming less efficient...
QUESTION 4 As a barometer of short-term liquidity the current ratio is limited by the nature of its components. All of the following are reasons that this is true except: C A firm could have a high current ratio but not be able to meet demands for cash because inventory is salable only at discounted rices. C The balance sheet is prepared as of a particular date and the actual amount of liquid assets may vary considerably from the date...
Current ratio = 2.6 times Credit sales $1,314m Average collection period 50 days Inventory turnover 1.50 times Total asset turnover 0.50 times Debt ratio 75% Use the above information to complete the balance sheet below. (Enter your answer in millions. Use 365 days a year.) Cash million million Current liabilities Accounts receivable $ 670 million million Long-term debt Inventory million 0 million Total debt Current assets 670 million million Stockholders' equity million 670 million Fixed assets $ 0 million Total...
13. If a firm's accounts receivable turnover equals 8 times, its average collection period is approximately days ratio must be 55% 14. A firm's debt ratio is 45%. This means that the firm's a. Current b. Times interest earned c. Equity d. Asset 15. Which of the following is a normal characteristic in a bond contract a. The interest rate is fixed b. Interest is paid semi-annually c. Principal is paid at the end of the bond term d. The...
In the discussion on Discounted Cash Flow which was NOT one of the reasons given for why money in the future is perceived to be less valuable than money in your hand today. Select one: a. Missed Opportunities b. Risk c. Inflation d. Interest Rates On a Balance Sheet, inventory is catagorized as Select one: a. a current debt b. an accounts payable O c. a long term asset d. a current asset
15. The condensed, audited financial statements for the June 30, 2003, fiscal year for McNeil Corporation are as follows: BALANCE SHEET, JUNE 30, 2003 ($000) $16,400 25,590 36,930 16,110 95,030 48,580 $143,610 Assets Cash Accounts receivable, net Inventory, net Other current assets Total current assets Fixed assets, net Total assets Liabilities and Owners' Equity Accounts payable Bank loan payable (8% interest rate) Other current liabilities Total current liabilities Long-term debt (10% interest rate) Capital stock Retained earnings Total liabilities &...
i will thumbs up!! thank you so much! a real life saver
44. Leah Co. had the following ratio information: Current Year Prior Year Inventory Turnover 5.5 6.3 Accounts Receivable Turnover 13.3 14.1 Which of the following is false a) Leah Co may be experiencing a decline in the quality of credit customers b) Leah Co. has improved their liquidity c) It is taking Leah Co. longer to collect cash from accounts receivable d) Leah Co is becoming less efficient...
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