Accounting Computations

Calculate the depreciation expense for an asset with a cost of $10,000, salvage value of $1,000, and a useful life of 5 years using the straight-line method.

• $1,800 per year

• $1,200 per year

• $1,500 per year

• $2,000 per year

Determine the ending balance of accounts receivable if the beginning balance was $20,000, credit sales were $5,000, and cash collections were $3,000.

• $25,000

• $22,000

• $4,000

• $18,000

Compute the net income for a company with revenues of $50,000, expenses of $30,000, and taxes of $5,000.

• $15,000

• $25,000

• $20,000

• $10,000

Find the total assets of a company with liabilities of $20,000 and owner's equity of $30,000.

• $50,000

• $10,000

• $40,000

• $25,000

Calculate the inventory turnover ratio if the cost of goods sold is $50,000 and average inventory is $10,000.

• 10

• 5

• 2

• 7

Determine the current ratio for a company with current assets of $40,000 and current liabilities of $20,000.

• 0.5

• 3

• 2

• 1.5

Compute the earnings per share (EPS) for a company with a net income of $100,000 and 50,000 outstanding shares.

• $3.50

• $1.50

• $2

• $4

Find the return on assets (ROA) for a company with net income of $50,000 and total assets of $200,000.

• 0.35 or 35%

• 0.50 or 50%

• 0.15 or 15%

• 0.25 or 25%

Calculate the payback period for an investment with an initial cost of $10,000 and annual cash flows of $2,000.

• 5 years

• 3 years

• 7 years

• 10 years

Determine the present value of $5,000 to be received in 3 years at a discount rate of 8%.

• $4,800.00

• $4,500.00

• $4,115.25

• $5,200.00