Q1. 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? Adjustment
Quick ratio
A) $50,000 write-down Yes B) $100,000 write-up No C) $50,000 write-down No
Q2. 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) $1,200,000 $1,375,000 C) $375,000 $1,375,000
Q3. Common size balance sheets express all balance sheet items as a percentage of: A) sales. B) equity. C) assets.
Q4. The following data is from Delta's common size financial statement: 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) 1.5. B) 1.0. C) 2.0.
Q5. Common size balance sheets express all balance sheet accounts as a percentage of: A) stockholders equity. B) total liabilities. C) total assets.
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发表于 2009-1-17 10:49
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