Question

In: Accounting

In calculating the current ratio which item would not be      included.     a. equipment    ...

In calculating the current ratio which item would not be

     included.

    a. equipment

    b. accounts payable

    c. accounts receivable

    d. short term investments

10. Bonds payable in two years would be classified as.

   a. noncurrent assets

   b. equity

   c. current liability

   d. noncurrent liability

III. Using the following information to answer items 11 thru 15.

      Sales 500,000,    Sales Returns 10,000,   

      Sales Discounts 10,000, Purchases 130,000

      Purchase returns 10,000, Purchase discounts 20,000

      Freight In 20,000, Selling expenses 50,000

      General expenses 170,000, inventory-beg 27,000

      Inventory-end 20,000

11. Net sales for the period are

      a. $500,000

      b. $480,000

      c. $490,000

      d. $520,000

                                             -3-

12. Net purchases for the period are

     a. $100,000

     b. $120,000

     c. $150,000

     d. $160,000

13. Cost of goods sold for the period is

    a. $147,000

    b. $107,000

    c. $127,000

    d. none of the above

14. Gross Margin for the period is

   a. $353,000

   b. $333,000

   c. $303,000

   d. none of the above

15. Net income for the period is

a. $113,000

b. $133,000

c. $126,000

  d. none of the above

                                          -4-

Solutions

Expert Solution

ekkarill92 answered 2 years ago
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