1. The December 31, 2009 balance sheet shows net fixed assets of $150,000 and the December 31, 2010 balance sheet shows net fixed assets of $250,000. Depreciation expense for 2009 is $25,000 and depreciation expense for 2010 is $35,000. Based on this information, the cost of fixed assets purchased during 2010 is

a) $100,000.

b) $110,000.

c) $135,000.

d) $160,000.

2. A firm's cash position would most likely be helped by

a) Delaying payment of accounts payable.

b) More liberal credit policies for their customers.

c) Purchasing land for investment purposes.

d) Holding larger inventories.

3. Use the following information to calculate the company's accounting net income for the year.

Credit Sales………………………………………………………$800,000

Cash Sales………………………………………………………..$500,000

Operating Expenses on Credit…………………………………...$200,000

Cash Operating Expenses………………………………………..$700,000

Accounts Receivable (Beg. of Year)……………………………...$50,000

Accounts Receivable (End of Year)………………………………$80,000

Accounts Payable (Beg. of Year)…………………………………$50,000

Accounts Payable (End of Year)……………………………….. $100,000

Corporate Tax Rate…………………………………………………...40%

a) $300,000

b) $240,000

c) $125,000

d) $120,000

4. Rogue Corp. has sales of $4,250,000; the firm's cost of goods sold is $2,500,000; and its total operating expenses are $600,000. The firm's interest expense is $250,000, and the corporate tax rate is 40%. What is Rogue's tax liability?

a) $258,000

b) $260,000

c) $360,000

d) $600,000

5. The accuracy of the percent of sales forecast method is impaired if

a) Scale economies are present for assets.

b) Assets must be purchased in discrete quantities.

c) Asset needs are independent of sales level.

d) All of the above impair the accuracy of the percent of sales forecast method.

Answer rating: 100% (QA)

1 c 135000 2 a Delaying paymen... View the full answer