Question

In: Accounting

Which of the following would indicate that the firm may be carrying excess inventory? A rise...

Which of the following would indicate that the firm may be carrying excess inventory?

A rise in total asset turnover

A decline in the current ratio

A decline in days’ sales in inventory

A decline in sales

A stable current ratio with a declining quick ratio

2. The following data are taken from the sheet at the end of the current year:

Cash 525,000

Trading Investments 106,000

Accrued Liabilities 515,000

Notes Payable, long-term 90,000

Prepaid Insurance 95,000

Accounts Payable 348,000

Inventory 1,459,000

Accounts Receivable 89,000

Salaries Payable 105,000

Intangible Assets 500,000

Property, Plant and Equipment 1,000,000

Computation Interpretation—what does the result mean?

Compute: a. Working capital: ___________________ __________________________________

b. Current ratio: ___________________ __________________________________

c. Acid-test ratio: ___________________ __________________________________

d. Consider the additional information for the above analysis:

Current ratio, prior year: 1.8

Industry average: 2.1

Interpret your findings: Are the results acceptable?

Accy 306 Quiz #6, page 2 of 2

The Hershey Company presents the following data for December 31, 2016.


Inventories, beginning of year	$ 750,970
Inventories, end of year	745,678
Cost of Goods Sold	4,282,290
Net Sales	7,440,181

______6. The inventory turnover in days (use average inventory) is:

a. 29.0

b. 63.6

c. 36.6

d. 64.1

e. 63.8

______7. The prior and current year results for Days’ Sales in Inventory are:

Using information above: Complete 2016

	2016	2015	2014
Days’ Sales in Inventory		70.74	65.24

T or F: This trend indicates the company is improving its efficiency and effectiveness in managing inventory.

______8. If merchandise inventory is being valued at cost and the price level is consistently rising (inflation), which method of costing will yield the largest gross profit and higher current ratio?

a. Average cost

b. FIDO

c. FIFO

d. LIFO

e. Specific identification

_____9. Which of the following types of businesses would normally have the shortest operating cycle?

a. Retail clothing store

b. Grocery store

c. Wholesale furniture store

d. Car manufacturer

e. Car dealer

_____10. General Motors presents the following data for the year ended December 31, 2017 (millions).


Receivables, net (allowance = $212M), beginning of year Receivables, net (allowance = $278M), end of year		$ 8,700 8,164
Net Sales		133,449
Cost of Goods Sold		114,869

The days’ sales in receivables using 365 days is:

a. 22.3

b. 15.8

c. 26.8

d. 23.1

e. 22.7

Expert Solution

ekkarill92 answered 9 months ago

Carrying excess weight may have a greater impact on the risk for diabetes than it does...

Carrying excess weight may have a greater impact on the risk for diabetes than it does on the risk for heart disease or early death, a new study has found. To look at the effect of obesity independent of genetics, Swedish researchers followed 4,046 pairs of identical twins whose average age was 58. One of the twins was overweight, and the other was not. Since identical twins have the same genes, their weight difference could not be attributed to genetics....

1. A basic condition that may give rise to a monopoly is which of the following?...

1. A basic condition that may give rise to a monopoly is which of the following? Relatively low fixed costs and relatively high variable costs The existence of long-lasting economies of scale Increasing marginal revenue Increasing marginal costs 2. Which of the following will a firm find if it wants to enter a closed monopoly market? Moderate barriers to entry Major barriers to entry Easy entry No barriers to entry 3. What is the least likely strategy of two-part pricing?...

an average collection period in excess of the industry average may indicate a. credit terms are...

an average collection period in excess of the industry average may indicate a. credit terms are liberal b. current assets are too small c. bad debt write-offs may occur d. collection policies are lax e. balance sheet value of accounts receivable is overstated

33) Which one of the following is not an element of inventory carrying cost? (2pts) Property...

33) Which one of the following is not an element of inventory carrying cost? (2pts) Property taxes Cost of obsolescence and deterioration Storage costs Insurance costs None of the above 34) Sarbanes-Oxley Act of 2002 may lead to ______. (2pts) convergence of GAAP and IFRS Worldwide acceptance of XBRL continuous or real-time reporting obscuring of the economic reality of business events All of the above None of the above 35) Which one of the following is not a segregation of...

If interest rates rise, bond prices will fall. Given the following pairs of bonds, indicate which...

If interest rates rise, bond prices will fall. Given the following pairs of bonds, indicate which bond’s price will experience the greater price decline. a.) Bond A Coupon:10% Maturity: 5 years Bond B Coupon: 6% Maturity: 5 years b.) Bond A Coupon: 10 % Maturity: 7 years Bond B Coupon: 10% Maturity: 15 years c.) Bond A Coupon: 10% Maturity: 5 years Bond B Coupon: 6% Maturity: 8 years d.) Bond...

Which of the following would cause prices to rise and real GDP to fall in the...

Which of the following would cause prices to rise and real GDP to fall in the short run? Question options: an increase in the expected price level an increase in the capital stock an increase in the quantity of labor available

Question #1 a) Under which inventory costing method would managers have an incentive to build excess...

Question #1 a) Under which inventory costing method would managers have an incentive to build excess inventory? What is it about that method that provides the incentive? Be sure to justify your answer. b) What steps can a manager take to reduce the incentive to build excess inventory? Be specific! Question #2 a) How does the choice of the denominator level capacity impact income reported under variable costing? Be sure to justify your answer. b) How does the choice of...

which of the following would indicate the beginning of cytokinesisin plant cells

Which of the following would cause prices and real GDP to rise in the short run?...

Which of the following would cause prices and real GDP to rise in the short run? a. short-run aggregate supply shifts right b. short-run aggregate supply shifts left c. aggregate demand shifts right d. aggregate demand shifts left

1. Levels of which of the following hormones would be expected to rise if one needed...

1. Levels of which of the following hormones would be expected to rise if one needed more energy in order to run up some stairs? thyroid stimulating hormone (TSH) Somatostatin growth hormone ADRENOCORTICOTROPIC 2. The first heart sound occurs at which of the following moments? the end of isovolumetric contraction the end of isovolumetric relaxation the end of ventricular systole WRONG the end of ventricular diastole 3.Which of the following occurs during the ejection stage of the cardiac cycle? ASK...