1. Selected financial information presented below was obtained from the financial statements of the Napa Valley Brewery:

Current Assets $ 49,000

Property and Equipment, net 69,000

Current Liabilities 49,500

Noncurrent Liabilities 39,500

Stockholders Equity 21,000

Sales Revenue 60,000

Net Income 21,600

What was the net profit margin ratio?

A. 18.31%

B. 36.00%

C. 97.22%

D. 44.00%

2. Inventory levels increase by 10% at your company during the fourth quarter. Based on this increase, which of the following statements must be correct?

A. This must be good news because inventories are an asset to the company.

B. This could be good news if the company is ordering more goods because sales appear to be rising.

C. This must be bad news because higher inventories mean higher costs.

D. This could be bad news if the company is ordering more goods because unit costs are falling.

3. Consider the following information:

Sales Revenue $665,000

Ending inventory 73,000

Cost of Goods Sold 530,000

Beginning inventory 63,000

What is the number of days to sell? (Round intermediate calculations to 2 decimal places.)

A. 40.1 days

B. 46.9 days

C. 37.3 days

D. 50.3 days

4. Your company sells $58,000 of one-year, 10% bonds for an issue price of $48,000. The journal entry to record this transaction will include a credit to Bonds Payable in the amount of:

A. $53,800.

B. $48,000.

C. $63,800.

D. $58,000.

5. A truck costing $13,000, which has Accumulated Depreciation of $9,100, was sold for $2,100 cash. The entry to record this event would include a:

A. gain of $1,800.

B. credit to Accumulated Depreciation for $9,100.

C. credit to the Vehicles account for $3,900.

D. loss of $1,800.