Question: Hello please provide the correct response with an explanation. Please and thank you! Question #12 If the market rate of interest is 6%, the issue
Hello please provide the correct response with an explanation. Please and thank you!
Question #12
If the market rate of interest is 6%, the issue price of 6% bonds paying interest semiannually with a face value of $100,000 will be
Greater than or less than $100,000, depending on the maturity date of the bonds
Incorrect.
Greater than $100,000
Less than $100,000
Equal to$100,000
Question #14
Hot Shot Delivery Inc. provides the following year end data:
20182017
Cash$65,000$38,000
Accounts Receivable60,00039,000
Merchandise Inventory66,00026,000
Property, Plant & Equip219,000154,000
Total Assets410,000257,000
Sales Revenue$530,000
Cost of Goods Sold180,000
Interest Expense30,000
Net Income112,000
Calculate the rate of return on total assets for 2018.
55.3%
52.5%Incorrect.
42.6%
27.3%
Question #15
Based on the following data for the current year, what is the accounts receivable turnover?
Net sales on account during year
$400,000
Cost of merchandise sold during year
300,000
Accounts receivable, beginning of year
45,000
Accounts receivable, end of year
35,000
Inventory, beginning of year
90,000
Inventory, end of year
110,000
11.4
10.0
8.9
4.0: Incorrect.
Question #17
Based on the following data for the current year, what is the number of days' sales in accounts receivable?
Net sales on account during year
$584,000
Cost of merchandise sold during year
300,000
Accounts receivable, beginning of year
45,000
Accounts receivable, end of year
35,000
Inventory, beginning of year
90,000
Inventory, end of year
110,000
5.8: Incorrect.
25
11.4
22.5
Question #20
Lone Start Golf, Inc. provides the following information for 2018.
Net Income$380,000
Market price per share of Common Stock$60 per share
Dividends paid to Common Stock holders$180,000
Common Stock outstanding at Jan. 1 2018170,000 shares
Common Stock outstanding at Dec. 31 2018220,000 shares
There is no preferred stock outstanding. Calculate the earnings per share for 2018.
$1.22 per share
$1.03 per share:Incorrect.
$1.51 per share
$1.95 per share
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