1. Given below are some of the ratios for the year 2012 for Two Store A and B.

Ａ. Comment on the current ratio of Store A and B.

B. Comment on the acid test ratio of Store A and B.

C. Comment on the accounts receivable turnover ratio of Store A and B.

D. Comment on the Inventory turnover ratio of Store A and B.

E. Comment on the overall liquidity of both the stores.

2. The price earnings ratio measured as Market price per share of stock divided by Earnings per share is 12.4 times for Store A for the year 2009 whereas Store B price earnings ratio is 10.4 times for the same period. The industry average is 21.3 times. Comment on the price earnings ratio of both Store A and B.

3. The Times interest earned ratio measured as Net income before interest and taxes divided by interest is 9.6 times for Store A for the year 2009 whereas Store B times interest earned ratio is 2.9 times for the same period. The industry average is 16.1 times. Comment on the time interest earned ratio of both Store A and B.

1. How are errors corrected when they are discovered in the current year? In a subsequent year? Utilize at least one online resource to support your response.

2. The directors of The Dress Shoppe are considering declaring either a stock dividend or a stock split. They have asked you to explain the difference between a stock dividend and a stock split and the accounting for a small stock dividend versus a large stock dividend.

It is Dec 31, 2015 and Mr. X is reflecting on the first year of his new business, OBD Inc. He has hired you to create financial statements for the company and you agree. You interview him – and he shares with you a great deal of information – which is listed below. He asks that you compile an income statement and balance sheet.

Sales were $1,000,000

Gross profit margin was 60%

Operating margins were 12%

The Bank of Toronto provided a loan on Jan 1, 2015 worth $300,000. The annual interest is 8% and is compounded annually. Interest only payments are needed – until the loan is due in 10 years, where a balloon payment for the full balance must be paid.

The combined federal and provincial tax rates is 27%

Mr. X knows that the ending cash balance in his company is 200,000.

Accounts Receivables is 10% of sales

Inventory is 15% of sales

Accounts Payable is 5% of sales

Accrued expenses payable is 5.5% of sales

Capital equipment purchases were made at the start of the year. These total $50,000. These depreciate at 10% per year

Mr. X will provided all other capital in the form of equity financing

As a smart young consultant, Mr. X has asked you to figure out his SG&A (Selling General and Administrative expenses).

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

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Determine the working capital.

Explain if entrepreneurs believed on "entrepreneur is talented, success will happen in a year or two", would be most damaging in preventing entrepreneurs from being successful? Why? Explain. Your post must be 7-10 sentences, with proper spelling and grammar.

In a survey of​ four-year colleges and​ universities, it was found that 255 offered a liberal arts degree. 110 offered a computer engineering degree. 481 offered a nursing degree. 30 offered a liberal arts degree and a computer engineering degree. 211 offered a liberal arts degree and a nursing degree. 86 offered a computer engineering degree and a nursing degree. 25 offered a liberal arts​ degree, a computer engineering​ degree, and a nursing degree. 33 offered none of these degrees.

A.  How many​ four-year colleges and universities were​surveyed? There were ___​four-year colleges and universities surveyed. Of the​ four-year colleges and universities​ surveyed, how many offered

B.  a liberal arts degree and a nursing​ degree, but not a computer engineering ​degree? There are ____ ​four-year colleges and universities that offer a liberal arts degree and a nursing​degree, but not a computer engineering degree.

C.  a computer engineering ​degree, but neither a liberal arts degree nor a nursing​ degree? There are ____ ​four-year colleges and universities that offer a computer engineering ​degree, but neither a liberal arts degree nor a nursing degree.

D.  a liberal arts​ degree, a computer engineering​ degree, and a nursing​ degree? There are ____ ​four-year colleges and universities that offer a liberal arts​ degree, a computer engineering​ degree, and a nursing degree. Enter your answer in each of the answer boxes.

Stephen is admitted to the HHH Partnership on January 1 of the current year in return for his services managing the partnership’s business during the year.  The HHH partnership reports ordinary income of $200,000 for the current year.

What are the tax consequences to Stephen and to the HHH partnership if Stephen receives a 30% interest in the partnership with an $80,000 FMV.

What are the tax consequences if Stephen contributes qualifying property to the HHH partnership in addition to his professional services?

Question 5 Which of the following will result in the largest expense recorded for the year?

Select one:

A. $4,000 is paid in January for an asset with a useful life of five years.

B. $1,800 is paid in January for a two-year fire insurance policy.

C. $1,000 cash dividends are declared and paid.

D. $850 is paid to an attorney for legal services rendered during the current year.

Question 6 An asset purchased on January 1, 2015 for $60,000 that has an estimated life of 10 years will have a book value on December 31, 2020 of:

Select one:

A. $60,000.

B. $24,000.

C. $36,000.

D. $42,000.

Question 7 The United Shipping Co. borrowed $25,000 at 12% interest on March 1, 2018. The note is to be repaid, with interest, in six months. If United Shipping makes monthly adjusting entries, which of the following is included as part of the March 31 adjusting entry?

Select one:

A. Credit Interest Payable $250.

B. Credit Interest Expense $250.

C. Debit Prepaid Interest $250.

D. Debit Interest Receivable $250.

Question 8 As of January 31, Princess Company owes $500 to Butler Co. for equipment rented during January. If no adjustment is made for this item at January 31, how will Princess's financial statements be affected?

Select one:

A. Cash will be overstated at January 31.

B. Net income for January will be understated.

C. Owners' equity will be overstated.

D. The financial statements will be accurate since the $500 does not have to be paid yet.

Question 9 An engineering firm provided services on 12/31/2018. Payment is due in 30 days. An adjusting entry is required: Select one:

A. To record uncollected revenue.

B. To record unearned revenue.

C. To record accrued liability.

D. To record prepaid revenue.

Question 10 Which of the following accounting principles are applied to help achieve the goals of accrual accounting? Select one: A. Business entity concept and realization principle.

B. Realization principle and matching principle.

C. Matching principle and safety principle.

D. Cost principle and the accounting equation.