Reference no: EM132550818
Questions -
Q1. York Ltd. reported a loss of $10,000 for the year. During the year, accounts receivable decreased $3,000, inventory increased $5,000, accounts payable increased by $11,000, and depreciation expense of $6,000 was recorded. Using the indirect method, operating activities
a. provided net cash of $5,000.
b. provided net cash of $15,000.
c. used net cash of $23,000.
d. used net cash of $17,000.
Q2. Gift Gallery sold 2,000 Zooglars during 2020. Information is provided concerning the Zooglar product:
Sales $60,000
Variable costs 24,000
Fixed costs 10,000
Net income $26,000
If Gift Gallery sells 30 more units, by how much will its profit increase?
a. 540
b. 900
c. 18
d. 390
Q3. Sarks Company has a contribution margin of $150,000 and a contribution margin ratio of 30%. How much are total variable costs?
a. $105,000
b. $500,000
c. $350,000
d. $45,000
Q4. CopperZ Company has variable costs which are 40% of its unit selling price and fixed costs of $30,000. How many sales will CopperZ report at its break-even point in dollars?
a. $75,000
b. $50,000
c. $18,000
d. $12,000
Q5. Tiny Tots Toys has actual sales of $400,000 and a break-even point of $260,000. How much is its margin of safety ratio?
a. 65%
b. 286%
c. 53.8%
d. 35%
Q6. Forms, Inc. wants to sell a sufficient quantity of products to earn an after-tax profit of $40,000. If the unit sales price is $10, unit variable cost is $8, and total fixed costs are $80,000, how many units must be sold to earn income of $40,000? Forms, Inc. has a tax rate of 40%.
a. 73,334 units
b. 18,334 units
c. 40,000 units
d. 90,000 units
Q7. Estes Company sells two types of computer chips. The sales mix is 30% (Chip A) and 70% (Chip B). Chip A has variable costs per unit of $20 and a selling price of $40. Chip B has variable costs per unit of $25 and a selling price of $55. The weighted-average unit contribution margin for Estes is
a. $23.00
b. $27.00
c. $25.00
d. $50.50
Q8. Net income reported for the current year was $200,000. Depreciation expense was $35,000. During the year, Accounts Receivable and Inventory increased $18,000 and $26,000, respectively. Prepaid Expenses and Accounts Payable decreased $4,000 and $9,000, respectively. There was also a loss on the sale of equipment of $6,000. Using the indirect method, how much cash was provided by operating activities?
a. $210,000
b. $244,000
c. $192,000
d. $182,000
Q9. Handles Corp. reported net credit sales of $6,500,000 and cost of goods sold of $3,400,000 for the year. The Accounts Receivable balances at the beginning and end of the year were $525,000 and $575,000, respectively. The receivables turnover ratio was
a. 11.3 times
b. 5.9 times
c. 6.2 times
d. 11.8 times