6) Phoenix Company reported sales of $490,000 for Year 1, $540,000 for Year 2, a
ID: 2444538 • Letter: 6
Question
6) Phoenix Company reported sales of $490,000 for Year 1, $540,000 for Year 2, and $590,000 for Year 3. Using Year 1 as the base year, what were the percentage increases for Year 2 and Year 3 compared to the base year?
A) 91.0% for Year 2 and 91.5% for Year 3.
B) 120.4% for Year 2 and 110.2% for Year 3.
C) 110.2% for Year 2 and 120.4% for Year 3.
D) 83.1% for Year 2 and 91.5% for Year 3.
E) 91.0% for Year 2 and 83.1% for Year 3.
7) Refer to the following selected financial information from Hansen's, LLC. Compute the company's return on total assets for Year 2.
Year 2 Year 1
Net sales $ 480,000 $ 426,550
Cost of goods sold 276,600 250,420
Interest expense 10,000 11,000
Net income before tax 67,550 52,980
Net income after tax 46,350 40,200
Total assets 317,700 289,800
Total liabilities 179,900 167,600
Total equity 137,800 122,200
A) 14.6%.
B) 22.2%.
C) 9.7%.
D) 15.3%.
E) 2.7%.
8) Refer to the following selected financial information from Fennie's, LLC. Compute the company's days' sales in inventory for Year 2. (Use 365 days a year.)
Year 2 Year 1
Cash $ 38,300 $ 33,050
Short-term investments 98,000 64,000
Accounts receivable, net 89,500 83,500
Merchandise inventory 125,000 129,000
Prepaid expenses 12,900 10,500
Plant assets 392,000 342,000
Accounts payable 109,400 111,800
Net sales 715,000 680,000
Cost of goods sold 394,000 379,000
A) 50.0 days.
B) 82.9 days.
C) 115.8 days.
D) 44.1 days.
E) 45.7 days.
9) Selected current year company information follows
Net income $ 16,653
Net sales 719,855
Total liabilities, beginning-year 90,932
Total liabilities, end-of-year 110,201
Total stockholders' equity, beginning-year 205,935
Total stockholders' equity, end-of-year 132,351
The return on total assets is (Do not round intermediate calculations.):
A) 2.67%.
B) 2.31%.
C) 2.97%.
D) 6.17%.
E) 2.42%.
Explanation / Answer
Debit Net sales
31,944
Debit Interest income
333
Credit Cost of goods sold
11,374
Credit Selling, general and administrative
11,774
Credit Other operating charges
350
Credit Interest expense
438
Credit Equity loss
874
Credit Other loss
28
Credit Income taxes
1,632
Credit Retained earnings
5,807
Debit Net sales
31,944
Debit Interest income
333
Credit Cost of goods sold
11,374
Credit Selling, general and administrative
11,774
Credit Other operating charges
350
Credit Interest expense
438
Credit Equity loss
874
Credit Other loss
28
Credit Income taxes
1,632
Credit Retained earnings
5,807
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.