{"id":13013,"date":"2021-11-02T09:40:43","date_gmt":"2021-11-02T09:40:43","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/question-1-the-following-information-is-available-for-oakland\/"},"modified":"2021-11-02T09:40:43","modified_gmt":"2021-11-02T09:40:43","slug":"question-1-the-following-information-is-available-for-oakland","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/question-1-the-following-information-is-available-for-oakland\/","title":{"rendered":"Question 1 the following information is available for oakland"},"content":{"rendered":"
\n

Question 1\u00a0<\/p>\n

The following information is available for Oakland Company:<\/p>\n

\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a020142013<\/p>\n

Accounts receivable$ \u00a0360,000$ \u00a0400,000<\/p>\n

Inventory \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 340,000400,000<\/p>\n

Net credit sales \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 2,470,0001,400,000<\/p>\n

Cost of goods sold1,850,0001,060,000<\/p>\n

Net income \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0300,000170,000<\/p>\n

\u00a0<\/p>\n

The inventory turnover ratio for 2014 is<\/p>\n

\u00a0<\/p>\n

5.0 times. \u00a0 \u00a0 \u00a0 \u00a0<\/p>\n

5.4 times.\u00a0<\/p>\n

4.6 times.\u00a0<\/p>\n

6.7 times.<\/p>\n

\u00a0<\/p>\n

Question 2\u00a0<\/p>\n

Swiss Clothing Store had a balance in the Accounts Receivable account of $920,000 at the beginning of the year and a balance of $980,000 at the end of the year. Net credit sales during the year amounted to $6,650,000. The average collection period of the receivables in terms of days was<\/p>\n

\u00a0<\/p>\n

50.7 days.\u00a0<\/p>\n

52.1 days. \u00a0\u00a0<\/p>\n

53.7 days.\u00a0<\/p>\n

30 days.<\/p>\n

\u00a0<\/p>\n

Question 3\u00a0<\/p>\n

Assume the following sales data for a company:<\/p>\n

\u00a0<\/p>\n

2014$1,050,000<\/p>\n

2013950,000<\/p>\n

2012800,000<\/p>\n

2011650,000<\/p>\n

\u00a0<\/p>\n

If 2011 is the base year, what is the percentage increase in sales from 2011 to 2013?<\/p>\n

\u00a0<\/p>\n

100%\u00a0<\/p>\n

61.5%\u00a0<\/p>\n

46.2% \u00a0 \u00a0 \u00a0\u00a0<\/p>\n

68.4%<\/p>\n

\u00a0<\/p>\n

Question 4\u00a0<\/p>\n

The current assets of Myers Company are $250,000. The current liabilities are $100,000. The current ratio expressed as a proportion is<\/p>\n

\u00a0<\/p>\n

2.5 : 1 \u00a0 \u00a0\u00a0<\/p>\n

.25 : 1\u00a0<\/p>\n

250%.\u00a0<\/p>\n

$250,000 \u00f7 $100,000.<\/p>\n

\u00a0<\/p>\n

Question 5\u00a0<\/p>\n

Nord Company had $375,000 of current assets and $150,000 of current liabilities before borrowing $70,000 from the bank with a 3-month note payable. What effect did the borrowing transaction have on the amount of Nord Company’s working capital?<\/p>\n

\u00a0<\/p>\n

No effect \u00a0 \u00a0\u00a0<\/p>\n

$70,000 decrease\u00a0<\/p>\n

$140,000 increase\u00a0<\/p>\n

$70,000 increase<\/p>\n

\u00a0<\/p>\n

Question 6\u00a0<\/p>\n

If a company has an acid-test ratio of 1.2:1, what respective effects will the borrowing of cash by short-term debt and collection of accounts receivable have on the ratio?<\/p>\n

\u00a0<\/p>\n

Short-term Borrowing\u00a0 \u00a0Collection of Receivable<\/p>\n

\u00a0<\/p>\n

Increase\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a0Increase\u00a0<\/p>\n

Decrease\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0Decrease\u00a0<\/p>\n

Decrease\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0No effect\u00a0<\/p>\n

Increase\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0No effect<\/p>\n

\u00a0<\/p>\n

Question 7\u00a0<\/p>\n

If an item meets one (but not both) of the criteria for an extraordinary item, it<\/p>\n

\u00a0<\/p>\n

is reported as an “other revenue or gain” or “other expense and loss,” net of tax.\u00a0<\/p>\n

only needs to be disclosed in the footnotes of the financial statements.\u00a0<\/p>\n

is reported at its gross amount as an “other revenue or gain” or “other expense or loss.”\u00a0<\/p>\n

may be treated as sales revenue (if it is a gain) and as an operating expense (if it is a loss).<\/p>\n

\u00a0<\/p>\n

Question 8\u00a0<\/p>\n

In ratio analysis, the ratios are never expressed as a<\/p>\n

\u00a0<\/p>\n

percentage.<\/p>\n

simple proportion.\u00a0<\/p>\n

negative figure.\u00a0<\/p>\n

rate.<\/p>\n

\u00a0<\/p>\n

Question 9\u00a0<\/p>\n

An aircraft company would most likely have<\/p>\n

\u00a0<\/p>\n

low profit margin.\u00a0<\/p>\n

a high inventory turnover.\u00a0<\/p>\n

high volume.\u00a0<\/p>\n

a low inventory turnover.<\/p>\n

\u00a0<\/p>\n

Question 10\u00a0<\/p>\n

The disposal of a significant component of a business is called<\/p>\n

\u00a0<\/p>\n

a change in accounting principle.\u00a0<\/p>\n

an extraordinary item.\u00a0<\/p>\n

discontinued operations.\u00a0<\/p>\n

an other expense.<\/p>\n

\u00a0<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Question 1\u00a0 The following information is available for Oakland Company: \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a020142013 Accounts receivable$ \u00a0360,000$ \u00a0400,000 Inventory \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 340,000400,000 Net credit sales \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 2,470,0001,400,000 Cost of […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-13013","post","type-post","status-publish","format-standard","hentry","category-homework-help"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/13013","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=13013"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/13013\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=13013"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=13013"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=13013"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}