I know I\'ve been asking a lot of questions - but this is out of 500 questions :
ID: 2443228 • Letter: I
Question
I know I've been asking a lot of questions - but this is out of 500 questions :/ I need help - Please!!!
1. A company has net income of $250,000, net sales of $2,000,000, and total assets of $1,500,000. Its return on total assets equals: (1 point)
2. A company had net income of $2,660,000, net sales of $25,000,000, and total assets of $8,000,000. Its return on total assets equals: (1 point)
3. A company had net income of $43,000, net sales of $380,500, and total assets of $220,000. Its profit margin and total asset turnover were, respectively: (1 point)
4. A company had a profit margin of 10.5% and total asset turnover of 1.84. Its return on total assets was: (1 point)
5. A company had net income of $40,000, net sales of $300,000, and total assets of $200,000. Its profit margin and total asset turnover were respectively: (1 point)
6.Morgan Company purchased 2,000 shares of Asta's common stock for $143,000 as a long-term investment. This investment is considered available-for-sale. The par value of the stock was $1 per share. Morgan paid $375 in commissions on the transaction. The entry to record the transaction would include a: (1 point)
7. Six months ago, a company purchased an investment in stock for $65,000. This investment is considered available-for-sale. The current market value of the stock is $68,500. The company should record a: (1 point)
8. On July 31, Beatrice Co. purchased 2,000 shares of SimmTech stock for $16,000. This investment is considered to be an available-for-sale investment. On October 31, which is Beatrice's year-end, the stock had a market value of $20,000. Beatrice should record a: (1 point)
9. On March 15, Carter Company purchased 10,000 shares of Tonya Corp. stock for $35,000. This investment is considered to be an available-for-sale investment. On June 30, the stock had a market value of $38,000. Carter must report: (1 point)
10. If a company owns more than 20% of the stock of another company and the stock is being held as a long-term investment, which method would the investor normally use to account for this investment? (1 point)
11. Vans purchased 40,000 shares of Skechers common stock for $232,000. This represents 40% of the outstanding stock. The entry to record the transaction includes a: (1 point)
12. Micron owns 35% of Martok. Martok pays a total of $47,000 in cash dividends for the period. Micron's entry to record the dividend transaction would include a: (1 point)
13. Chung owns 40% of Lu's common stock. Lu pays $97,000 in total cash dividends to its shareholders. Chung's entry to record this transaction should include a: (1 point)
14. Hamilton Company owns 51,000 of Hennie Company's 100,000 outstanding shares of common stock. Hennie Company pays $25,000 in total cash dividends to its shareholders. Hamilton's entry to record this transaction should include a: (1 point)
Explanation / Answer
1. A company has net income of $250,000, net sales of $2,000,000, and total assets of $1,500,000. Its return on total assets equals: (1 point) c. 16.7%. 2. A company had net income of $2,660,000, net sales of $25,000,000, and total assets of $8,000,000. Its return on total assets equals: (1 point) b. 10.64%. . 3. A company had net income of $43,000, net sales of $380,500, and total assets of $220,000. Its profit margin and total asset turnover were, respectively: (1 point) b. 11.3%; 19.5. 4. A company had a profit margin of 10.5% and total asset turnover of 1.84. Its return on total assets was: (1 point) e. 19.32% 5. A company had net income of $40,000, net sales of $300,000, and total assets of $200,000. Its profit margin and total asset turnover were respectively: (1 point) a. 13.3%; 0.2. 6.Morgan Company purchased 2,000 shares of Asta's common stock for $143,000 as a long-term investment. This investment is considered available-for-sale. The par value of the stock was $1 per share. Morgan paid $375 in commissions on the transaction. The entry to record the transaction would include a: (1 point) e. Debit to Long–Term Investments for $143,375. 7. Six months ago, a company purchased an investment in stock for $65,000. This investment is considered available-for-sale. The current market value of the stock is $68,500. The company should record a: (1 point) b. Credit to Unrealized Gain–Equity for $3,500. 8. On July 31, Beatrice Co. purchased 2,000 shares of SimmTech stock for $16,000. This investment is considered to be an available-for-sale investment. On October 31, which is Beatrice's year-end, the stock had a market value of $20,000. Beatrice should record a: (1 point) a. Credit to Unrealized Gain-Equity for $4,000. 9. On March 15, Carter Company purchased 10,000 shares of Tonya Corp. stock for $35,000. This investment is considered to be an available-for-sale investment. On June 30, the stock had a market value of $38,000. Carter must report: (1 point) a. The $3,000 difference on the income statement as a gain. 10. If a company owns more than 20% of the stock of another company and the stock is being held as a long-term investment, which method would the investor normally use to account for this investment? (1 point) c. Historical cost method. 11. Vans purchased 40,000 shares of Skechers common stock for $232,000. This represents 40% of the outstanding stock. The entry to record the transaction includes a: (1 point) b. Debit to Long–Term Investments for $232,000. 12. Micron owns 35% of Martok. Martok pays a total of $47,000 in cash dividends for the period. Micron's entry to record the dividend transaction would include a: (1 point) a. Credit to Long–Term Investments for $16,450. . 13. Chung owns 40% of Lu's common stock. Lu pays $97,000 in total cash dividends to its shareholders. Chung's entry to record this transaction should include a: (1 point) . d. Credit to Long–Term Investments for $38,800. 14. Hamilton Company owns 51,000 of Hennie Company's 100,000 outstanding shares of common stock. Hennie Company pays $25,000 in total cash dividends to its shareholders. Hamilton's entry to record this transaction should include a: (1 point) c. Credit to Long–Term investments for $12,750.