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 (a)   % decrease in long-term liabilities. Note please answer to the nearest whole number percentage.

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 (a)   %. Note please answer to the nearest whole number percentage.

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?

(a)  

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?

(a)  

The financial statements of Persimmon Company include the following items:

What is working capital for 20X9?

(a)  

The financial statements for Banana Company include the following items:

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

(a)  

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.

(a)  

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.

(a)  

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.

(a)  

A company reports total assets of $900,000 and stockholders’ equity of $315,000. Calculate the debt ratio. Note please answer to the nearest whole number percentage.

(a)  

Tangerine, Inc. provides the following data:

Calculate the debt to equity ratio. Note please answer to two decimal places.

(a)  

Melon, Inc. provides the following income statement for 20X9:

Calculate the times-interest-earned ratio.

(a)  

A corporation has 3000 shares, 10% preferred stock of $55.00 par preferred stock, and 6000 shares of common stock outstanding. The net income for the year is $300,000. Calculate earnings per share. Note please answer to the nearest cent.

(a)  

Plum, Inc. provides the following data:

For the year ending December 31, 20X9:

Net Credit Sales: $509,600

Cost of Goods Sold: ($170,000)

Gross Profit: $339,600

There are no cash sales. Calculate the asset turnover ratio for 20X9. Note please answer to two decimal places.

(a)  

The net income of a company for the year was $510,000. The company has no preferred stock. Common stockholders' equity was $1,200,000 at the beginning of the year and $2,200,000 at the end of the year. Calculate the rate of return on common stockholders' equity. Note please answer to the nearest whole number percentage.

(a)  

Watermelon, Inc. provides the following data:

Additional information for the year ending December 31, 20X9:

Net Credit Sales: $500,000

Cost of Goods Sold: $170,000

Interest Expense: $24,000

Net Income: $181,000

Calculate the rate of return on total assets for 20X9. Note please answer to the nearest whole number percentage.

(a)  

Apple, Inc. provides the following information for 20X9:

The company has no preferred stock outstanding. Calculate the earnings per share for 20X9. Note please answer to the nearest cent.

(a)  

Kiwi, Inc. provides the following information for 20X8:

The company has no preferred stock outstanding. Calculate the price/earnings ratio of common stock. Note please answer to two decimal places.

(a)  

Grapefruit, Inc. provides the following information for 20X8:

The company has no preferred stock outstanding. Calculate the dividend yield for common stock. Note please answer to the nearest whole number percentage.

(a)  

Froot Loop Inc., a cereal manufacturer, has variable costs of $0.60 per unit of product. In May, the volume of production was 27,000 units, and units sold were 20,700. The total production costs incurred were $32,000. What are the fixed costs per month?

(a)  

Skittles Pet store provides a dog wash service. Its highest and lowest bills of $3800 and $2000 were incurred in the months of May and November, respectively. If 400 dogs were washed in May and 200 dogs were washed in November what was the fixed cost associated with the company's water bill? (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar.)

(a)  

Guava Company has provided the following information:

Sales Price per Unit: $58

Variable Cost per Unit: $16

Fixed Costs per Month: $14,000

Calculate the contribution margin ratio. (Round your answer to the nearest whole percentage.)

(a)  

Fruity Pebbles Apparel sells fruit themed shirts at $58.00 per shirt. It incurs monthly fixed costs of $8000. The contribution margin ratio is calculated to be 34%. What is the variable cost per shirt? (Round any intermediate calculations and your final answer to two decimal places.)

(a)  

Avocado Company sells guitars to Mexican restaurants. The guitars sell for $20, and the fixed monthly operating costs are as follows:

Rent and Utilities: $600

Wages and Benefits to Employees: $2400

Other Expenses: $480

Avocado understands that for every dollar of sales, $0.60 went to cover fixed costs, and anything above that point was profit.

What is the amount of revenue that Avocado should earn each month to break even? (Round your answer to the nearest whole dollar.)

(a)  

Fruit Sushi Corporation sells delicious fruit sushi at a wholesale price of $5.00 per unit. The variable cost to manufacture is $2.00 per unit. The monthly fixed costs are $7500. Its current sales are 27,000 units per month. If the company wants to increase its operating income by 30%, how many additional units must it sell? (Round any intermediate calculations to two decimal places and your final answer up to the nearest whole unit.)

(a)  

Mango LLC sells its product for $55 and has variable cost of $30 per unit. The total fixed costs are $26,000.

If variable cost increases by $5 due to an increase in the cost of direct materials, the breakeven point will increase by (a)   units.  (Round your answer up to the nearest whole unit.)

Papaya Corporation has the following product information:

Sales Price: $8.50 per Unit

Variable Cost: $5.25per Unit

Fixed Cost: $21,000 per Month

Volume: 10,000 Units per Month

The company believes that the volume will go up to 12,000 units if the company reduces its sales price to $7.50. This change would decrease operating income by (a)   .

Crazy Coconut LLC has two products:

Annual fixed costs are $280,000.

What is the break-even amount in units for jet boats, assuming that Crazy Coconut sells five jet boats for every two ski boats sold? (Round any intermediate calculations to two decimal places, and your final answer to the nearest whole unit.)

(a)  

Fruit Computer Corporation makes custom fruit shaped computers. It is currently producing 80 computers per month. Data are as follows: 

Sales Price per Unit: $720

Variable Cost per Unit: $600

Fixed Costs per Month: $3480

If Fruit Computer Corporation expects to sell 60 units per month, how much is its margin of safety expressed in sales revenue?

(a)  

Fruit Bouquet Inc manufactures fruit bouquets. The company produces at full capacity for six months each year to meet peak demand; the manufacturing facility operates at 70% of capacity for the other six months of the year. The company has provided the following data for the year:

Fruit Bouquet Inc. receives an offer to produce 6000 fruit bouquets for a special event. This is a one-time opportunity during a period when the company has excess capacity. What is the minimum sales price the company should accept for the order?

(a)  

Fruit Computer Company makes special fruit-themed computers. Each unit sells for $400. Fruit Computer Company produces and sells 12,500 units per year. They have provided the following income statement data:

A foreign company has offered to buy 75 units for a reduced sales price of $350 per unit. The marketing manager says the sale will not affect the company's regular sales. The sales manager says that this sale will require variable selling and administrative costs. The production manager reports that it would require an additional $20,000 of fixed manufacturing costs to accommodate the specifications of the buyer. If Fruit Computer Company accepts the deal, how will this impact operating income?

(a)  

Fruit Car Company manufactures 100 fruit themed cars per month. A compact media center is included in each car. Fruit Car Company manufactures the media center in-house but is considering the possibility of outsourcing this function. At present, the variable cost per unit is $280, and the fixed costs are $39,000 per month. The CEO, wishes to increase operating income by $1000. He has an offer from a foreign producer to provide the media centers at a contract cost of $300 per unit. The required savings in fixed costs in order to achieve his objective would be (a)   .

Fruit Boat Company manufactures 10 fruit themed boats per month. A navigation system is included in each boat. Fruit Boat Company manufactures the navigation system in-house but is considering the possibility of outsourcing this function. At present, the variable cost per unit is $280, and the fixed costs are $40,000 per month. If it outsources the navigation system, fixed costs could be reduced by half, and the vacant facilities could be rented out to earn $4000 per month of rental income. What is the maximum contract cost that Fruit Boat Company should pay for outsourcing?

Any cost lower than (a)   per unit.

Fruit Basket Company manufactures fruit baskets. The basket component, not including the fruit, is made in-house. Details of the baskets are as follows:

A foreign factory has offered to supply Fruit Basket Company with ready-made baskets for a price of $12 per basket. Assume that Fruit Basket Company's fixed costs are unavoidable, but that Fruit Basket Company could use the vacated production facilities to earn an additional $7500 of profit per month. If Fruit Basket Company decides to outsource, monthly operating income will increase by (a)   .

The income statement for Orange Company is divided by its two product lines, juice and fruit, as follows:

Orange Company is considering eliminating the fruit product line. If this line is eliminated, Orange Company will be able to eliminate $72,000 of total fixed costs. By how much would this business decision increase operating income?

(a)  

Fruit Pie Inc. has three product lines: Strawberry, Cherry, and Apple. The following information is available:

The company is deciding whether to drop product line Apple because it has an operating loss. Assuming fixed costs are unavoidable, if Fruit Pie Inc. drops product line Apple and rents the space formerly used to produce product Apple for $20,000 per year, total operating income will be (a)   .

Gushers Company produces 1000 packages of fruit snacks per month. The sales price is $5 per pack. Variable cost is $1.60 per unit, and fixed costs are $1800 per month. Management is considering adding a vitamin supplement to improve the value of the product. The variable cost will increase from $1.60 to $1.70 per unit, and fixed costs will increase by 10%. At what sales price for the new product will the two alternatives (sell as is or process further) produce the same operating income?

(a)  

Fruit Sushi Inc. produces 1000 packages of fruit sushi per month. The sales price is $4 per pack. Variable cost is $1.60 per unit, and fixed costs are $1800 per month. Management is considering adding a chocolate coating to improve the value of the product by making it a dessert item. The variable cost will increase from $1.60 to $1.80 per unit, and fixed costs will increase by 20%. The CEO wants to price the new product at a level that will bring operating income up to $4000 per month. What sales price should be charged?

(a)  

Fruit Computer Company makes a fruit themed computer. Variable costs are $200 per unit, and fixed costs are $30,000 per month. Fruit Computer Company sells 400 units per month at a sales price of $320. The company believes that it can increase the price if the computer quality is upgraded. If so, the variable cost will increase to $240 per unit, and the fixed costs will rise by 25%. The CEO wishes to increase the company's operating income by 10%. Which sales price level per unit would give the desired results?

(a)