Question

1)Lantz Company has provided the following information:

Cash sales totaled $200,000.

Credit sales totaled $480,000.

Cash collections from customers for services yet to be provided totaled $80,000.

A $16,000 loss from the sale of property and equipment occurred.

Interest income was $7,800.

Interest expense was $18,000.

Supplies expense was $300,000.

Rent expense for the store was $30,000.

Wages expense was $40,000.

Other operating expenses totaled $70,000.

Unearned revenue was 4,900.

What is the amount of Lantz’s income before income taxes?

2)

During 2016, Sensa Corporation incurred operating expenses amounting to $150,000 of which $90,000 was paid in cash; the balance will be paid during 2017. Which of the following is correct for the 2016 year-end balance sheet?

Stockholders' equity decreases $150,000, assets decrease $90,000, and liabilities increase $60,000.

Assets decrease $150,000, liabilities increase $60,000, and stockholders' equity decreases $150,000.

Stockholders' equity decreases $90,000 and assets decrease $90,000.

Assets decrease $150,000 and stockholders' equity decreases $150,000.

3)On December 31, 2016, Krug Company reported total liabilities of $190,000 prior to the following adjusting entries:

Depreciation expense: $41,000;

Accrued sales revenue: $39,000;

Accrued expenses: $28,000;

Used insurance: $7,000; the insurance was initially recorded as prepaid.

Rent revenue earned: $5,000; the rent was initially prepaid by the tenant and credited to unearned rent revenue.

How much are Krug's total liabilities after the adjusting entries?

$213,000.

$190,000.

$174,000.

$231,000.

4Lantz Company has provided the following information:

Cash sales totaled $370,000.

Credit sales totaled $497,000.

Cash collections from customers for services yet to be provided totaled $97,000.

A $22,000 loss from the sale of property and equipment occurred.

Interest income was $9,500.

Interest expense was $19,700.

Supplies expense was $440,000.

Rent expense for the store was $36,000.

Wages expense was $57,000.

Other operating expenses totaled $87,000.

Unearned revenue was $3,000.

What is the amount of Lantz’s income from operations (operating income)?

rev: 09_18_2017_QC_CS-100581

$184,800

$206,800

$225,000

$314,000

5)Top Company's 2016 sales revenue was $160,000 and 2015 sales revenue was $140,000. Top's total assets as of December 31, 2016 were $210,000 and total assets as of January 1, 2016 were $190,000. What is Top's total asset turnover ratio?

.79

.76

.85

.80

Answer 1