The following information pertains to Diane Company. Assume that all balance she
ID: 2585948 • Letter: T
Question
The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Assets Cash and short-term investments Accounts receivable (net) Inventory Property, plant, and equipment Total assets 30,000 20,000 15,000 185,000 $250,000 Liabilities and Stockholders' Equity Current liabilities Long-term liabilities Stockholders' equity-Common Total liabilities and stockholders' equity $ 45,000 70,000 135,000 250.000 Sales Cost of goods sold Gross margin Operating expenses Interest expense Net income $85,000 45.000 $40,000 (15,000) Number of shares of common stock outstanding 6,000Explanation / Answer
24. Dividend Yield = Dividend per share / Market price = 1.5 / 20 = 7.5% Answer is A.
25. Gain or loss = ($35 - 38.5) x 100 = 350 Loss . Answer is C
26. Change in operating Income = (8,000 x $25) = 200,000 Increase. Answer is C.
27. Company has sold bonds of $50,000 for ($50,000 / 100 x 103) = $51,500. This means there is gain on sale of investment amounting to $1,500. Answer is B.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.