23. Analysis -express each item in a financial statement as a percentage of the same Fill in the blanks with the BEST TWO missing words: a. Horizontal and Total Asset Amount d. Horizontal and Base Amount b. None of the answers are correct. Vertical and Base Amount e. Vertical and Total Asset Amount c. 24. On January 31, a company purchases inventory for S175. On February 17,the inventory is sold for $250 on account. Which of the following is recorded on February a. Credit inventory for $175 b. Two of the other answers are correct c. Debit cost of goods sold for $250. d. Debit sales revenue for $250. e. Debit accounts receivable for $175. 17 A company had the following associated with the purchase of a piece of land that it will use to re-build an office building: 25. Purchase price of the land Sale of salvaged parts already on land Cost to demolish old building Cost of ground breaking ceremony (food and supplies) $ Cost of land preparation and leveling $640,000 S 21,000 $ 27,000 2,100 $ 30,000 What amount should be recorded for the purchase of the land? a $673,900 b. $676,000 c. $655,000 d. $652,900 Which of the following scenarios would result in a bond being issued at a PREMIUM? a. b. 26. Stated rate is equal to marekt rate The company just needs more cash on its balance sheet c. Stated rate is more than market rate d. Stated rate is less than market rate Which financial ratio relates most closely to understanding the profitability of the company? a. Current ratio b. Debit to equity c. Returnm on assets d. Receivables turnover e. Inventory turnover 27. 28. It is always true that when a company collects cash less quickly from customers, the company will have a: a. b. c. Higher inventory turnover ratio Lower receivables turnover ratio Higher profit margin Lower return on equity Higher current ratio d. e