ACG3173 Exam 2 Practice

The following is a summary of information presented on the financial statements of a company on December 31, 20X9.

With respect to net sales revenue, a horizontal analysis reveals a ______% increase in net sales revenue. Note please answer to the nearest whole number percentage.

Answer explanation

20x9 Net Revenue

• - 20x8 Net Revenue

• Increase in Revenue

• / 20x8 Net Revenue

• % Increase in Net Revenue

Tags

CCSS.HSA.SSE.A.1

The following is a summary of information presented on the financial statements of a company on December 31, 20X9.

With respect to long-term liabilities, a horizontal analysis reveals a ______% decrease in long-term liabilities. Note please answer to the nearest whole number percentage.

Answer explanation

20x9 Long-Term Liabilities

• - 20x8 Long-Term Liabilities

• Decrease in Long-Term Liabilities

• / 20x8 Long-Term Liabilities

• % Decrease in Long-Term Liabilities

Starfruit Inc. provides the following data for the year 20X9:

Net Sales Revenue: $420,000

Cost of Goods Sold: $315,000

The cost of goods sold as a percentage of net sales revenue is ______%. Note please answer to the nearest whole number percentage.

Answer explanation

Cost of Goods Sold

/ Net Sales Revenue

% Revenue of COGS

Fig Company reported the following amounts on its balance sheet as of December 31, 20X9 and December 31, 20X8:

For the vertical analysis, what is the percentage of total liabilities expressed as a function of total assets for December 31, 20X8?

Answer explanation

20x8 Total Liabilities

/ 20x8 Total Assets

% of Total Liabilities

Tags

CCSS.HSA.CED.A.1

CCSS.HSA.CED.A.4

CCSS.HSA.REI.B.3

CCSS.HSA.SSE.A.1

Av​ocado Company reported the following amounts on its balance sheet as of December 31, 20X9 and December 31, 20X8:

For the vertical analysis, what is the percentage of current assets expressed as a function of total assets as of December 31, 20X9?

Answer explanation

20x9 Cash and Receivables

• + 20x9 Merchandise Inventory

• 20x9 Total Current Assets

• / 20x9 Total Assets

• % of 20x9 Current Assets

The financial statements of Persimmon Company include the following items:

What is working capital for 20X9?

Answer explanation

20x9 Cash

• + 20x9 Short-Term Investment

• + 20x9 Net Account Receivables

• + 20x9 Merchandise Inventory

• 20x9 Current Assets

• - 20x9 Total Current Liabilities

• 20x9 Working Capital

The financial statements for Banana Company include the following items:

Compute the current ratio for 20X8. Note please answer to two decimal places.

Answer explanation

Part 1:

20x8 Cash

• + 20x8 Short-Term Investments

• + 20x8 Net Accounts Receivable

• + 20x8 Merchandise Inventory

• 20x8 Current Assets

Part 2:

20x8 Accounts Payable

• + 20x8 Salaries Payable

• 20x8 Current Liabilities

Part 3:

20x8 Current Assets

/ 20x8 Current Liabilities

20x8 Current Ratio

Tags

CCSS.HSA.CED.A.4

Lime, Inc. has net sales on account of $1,500,000. The average net accounts receivable are $600,000. Calculate the days' sales in receivables. Note please answer to the nearest whole day. Make sure to round your answer.

Answer explanation

Average Net Accounts Receivable

/ Net Sales on Account

x 365 Days

Days Sales in Receivable

Tags

CCSS.HSN.Q.A.1

Mango, Inc.’s cost of goods sold for the year is $2,531,250 and the average merchandise inventory for the year is $125,000. Calculate the inventory turnover ratio of the company. Note please answer to two decimal places.

Answer explanation

Cost of Goods Sold

/ Average Merchandise Inventory

Inventory Turnover Rate

Guava, Inc. provides the following data:

For the year ending December 31, 20X9:

Net Credit Sales: $320,000

Cost of Goods Sold: ($111,250)

Gross Profit: $208,750

Calculate the days' sales in inventory for 20X9. Note please answer to the nearest whole day.

Answer explanation

20x9 Merchandise Inventory

• + 20x8 Merchandise Inventory

• / 2

• Average Inventory

• / 20x9 Cost of Goods Sold

• x 365 Days

• 20x9 Days Sales Inventory