17. The average stockholders\' equity for Horn Co. last year was $4,000,000. Inc

Question

17. The average stockholders' equity for Horn Co. last year was $4,000,000. Included in this figure was $400,000 of preferred stock. Preferred dividends were $56,000. If the return on common stockholders' equity was 13% for the year, net income was:

A. $524,000 B. $520,000 C. $468,000 D. $464,000

22. Brandon Company's net income last year was $110,000 and its interest expense was $31,000. Total assets at the beginning of the year were $730,000 and total assets at the end of the year were $780,000. The company's income tax rate was 30%. The company's return on total assets for the year was closest to:

A. 17.4% B.16.9% C. 18.0% D.14.6%

25. Irastan Company, a retailer, had cost of goods sold of $390,000 last year. The beginning inventory balance was $84,000 and the ending inventory balance was $76,000. The company's average sale period was closest to: (Assume 365 days a year.)

A. 71.15 days B. 74.87 days C. 78.66 days D. 149.59 days

11.Spade Company recorded the following events last year:

Insurance of shares of the company's own common stock $180,000 Purchase of long-term investment $78,000 Dividends paid to the company's own shareholders $41,400 Cash paid to suppliers for inventory purchases $2,600 Repayment of principal on the company's own bonds $202,000 Interest paid to lenders $23,400 Collection by Spade of a loan made to another company $178,000 Purchase of equipment $460,000

Explanation / Answer

B. $520,000 D.14.6% B. 74.87 days $(113,200)

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