Please help! Review and I am missing these ):
1.) ABC Company has a 2-for-1 stock split of 50,000 shares of $2 par value stock. After the split, there are 100,000 shares of $2 par value stock
True
False
2.) Harry’s Motor Corporation had net income of $325,000 for 2016. Also during 2016, the company paid out $10,000 in dividends and repurchased 20,000 shares of treasury stock at $10 per share. The total change in stockholders’ equity was $115,000.
True
False
3.) The following is selected balance sheet and income statement information for Lopez Company for 2016:
Current Assets $48,062
Gross Profit on Sales $200,680
Net Sales $450,009
Net Income $45,216
Average Total Assets $273,710
Average Common Stockholders’ Equity $151,668
Lopez Company’s return on sales is 20%
True
False
4.) The following is selected balance sheet and income statement information for Lopez Company for 2016:
Current Assets $48,062
Gross Profit on Sales $200,680
Net Sales $450,009
Net Income $45,216
Average Total Assets $273,710
Average Common Stockholders’ Equity $151,668
Lopez Company’s gross profit percentage is 44.6%
True
False
5.) One key measure of profitability is the debt-to-equity ratio.
True
False
6.) Income effects of discontinued operations are reported separately from continuing operations on the income statement.
True
False
7.) Solvency ratios measure a company’s ability to meet its debt obligations and continuing operating over time.
True
False
8.) Vertical analysis examines changes in financial data across time.
True
False
9.) Which of the following is not a cash equivalent for purposes of preparing a statement of cash flows?
Investment in commercial paper
Investment in Treasury bills
Investment in common stock of other companies
Investment in a money market fund
10.) To qualify as a cash equivalent, an investment must be:
convertible to cash after a 90 day period
Convertible into a known cash amount
convertible into a known amount of cash within a 90-day period
11.) Treasury stock is
Stock of other corporations owned by a corporation
A corporation’s own stock that will never be sold again
A corporation’s own stock that has been reacquired and held for future use
A U.S. government security
12.) Which of the following is an organizational disadvantage of a corporation?
Separate legal entity
Pays tax on its earnings
Relative ease of ownership transfer
Limited liability of owners
13.) Gomez Company has 50,000 shares of $200 par value, 8% cumulative preferred stock and 160,000 shares of $120 par value common stock. Francisco declares and pays cash dividends amounting to $880,000. If no arrearage on the preferred stock exits, how much in total dividends is paid to each class of stock?
Preferred $800,000 / Common $80,000
Preferred $640,000 / Common $240,000
Preferred $256,000 / Common $624,000
Preferred $880,000 / Common $0
14.) If a company issues 10,000 shares of $4 par value common stock at a market price of $60 per share, which of the following is the correct balance sheet entry?
Increase cash by $600,000 and increase retained earnings by $600,000
Increase common stock and cash by $40,000
Increase revenues by $600,000
Increase cash by $600,000 and increase paid-in capital by $600,000
“Are you looking for this answer? We can Help click Order Now”
