1.Information related to Bledsoe Corporation’s inventory, as of December 31, 2007, follows: Estimated selling price | $3,500,000 | Estimated disposal costs | 50,000 | Estimated completion costs | 300,000 | Original FIFO cost | 3,200,000 | Replacement cost | 3,300,000 |
Using the appropriate valuation method, what adjustment is necessary to accurately report Bledsoe’s inventory at the end of 2007, and will this adjustment affect Bledsoe’s quick ratio?
A) $50,000 write-down Yes B) $50,000 write-down No C) $100,000 write-up No D) $40,000 write-up Yes
2.Coleman Corporation’s unadjusted trial balance at the end of 2007 reflected compensation expense of $90 million. The trial balance did not include the following: § Because of the holidays, no salary accrual was made for the last week of the year. Salaries for the last week totaled $3.5 million and were paid on January 4, 2008. § Employee bonuses for 2007 totaled $5 million. The bonuses were paid on January 31, 2008. Ignoring payroll taxes, what is Coleman’s adjusted compensation expense for the year ended 2007 and what impact will the adjustment have on Coleman’s 2007 current ratio?
| Compensation expense
| Current ratio
|
A) $98.5 million Decrease B) $98.5 million No effect C) $94.5 million Decrease D) $94.5 million No effect
3.Common size balance sheets express all balance sheet accounts as a percentage of: A) total assets. B) total liabilities. C) stockholders equity. D) inventory.
4.Use the following data from Delta's common size financial statement to answer the question: Earnings after taxes | = | 18% | Equity | = | 40% | Current assets | = | 60% | Current liabilities | = | 30% | Sales | = | $300 | Total assets | = | $1,400 |
What is Delta's total-debt-to-equity ratio? A) 1.0. B) 1.5. C) 2.0. D) 2.5.
5.Common size balance sheets express all balance sheet items as a percentage of: A) sales. B) equity. C) industry averages. D) assets.
6.On January 1, 2008, Tenant Company leased office space from Landlord Inc. for 5 years at $75,000 per month. On that same date, Tenant made the following payments to Landlord: First month’s rent | $75,000 | Last month’s rent | 75,000 | Security deposit | 100,000 | Lease improvements | 1,500,000 |
The leasehold improvements include build-out costs to install office walls, restrooms, and a kitchen. Tenant allocates the cost of the leasehold improvements over the lease term using the straight-line method. What amount of total lease expense should Tenant report for the year ended 2008 and what is the balance of all of the lease related assets on December 31, 2008, assuming the lease payments are made on the first day of each month?
| Lease expense
| Lease related assets
|
A) $1,200,000 $1,200,000 B) $375,000 $1,375,000 C) $375,000 $1,200,000 D) $1,200,000 $1,375,000 | 
发表于 2008-4-11 17:11
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