ACCT 211 Exam 2 Liberty University Solution

Question 1

Using the following year-end information for Bauman, LLC, calculate the current ratio and acid-test ratio:

Question 2

A company's quick assets are $173,000 and its current liabilities are $151,000. This company's acid-test ratio is 1.15.

Question 3

Using the following year-end information for Calvin’s Clothing, calculate the current ratio and acid-test ratio for the business:

Question 4

KLM Corporation's quick assets are $5,929,000, its current assets are $12,075,000 and its current liabilities are $8,025,000. Its acid-test ratio equals:

Question 5

A company's gross profit was $121,260 and its net sales were $475,900. Its gross margin ratio equals:

Question 6

A company had net sales of $768,400 and cost of goods sold of $551,770. Its net income was $21,150. The company's gross margin ratio equals:

Question 7

A company has sales of $385,800 and its gross profit is $162,300. Its cost of goods sold equals:

Question 8

A company had net sales of $559,000 and cost of goods sold of $352,000. Its gross margin equals $911,000.

Question 9

Cushman Company had $836,000 in net sales, $365,750 in gross profit, and $209,000 in operating expenses. Cost of goods sold equals:

Question 10

A company purchased $10,200 of merchandise on June 15 with terms of 3/10, n/45, and FOB shipping point. The freight charge, $600, was added to the invoice amount. On June 20, it returned $960 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it is entitled to. The cash paid on June 24 equals:

Question 11

A company purchased $8,200 of merchandise on June 15 with terms of 3/10, n/45. On June 20, it returned $410 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it was entitled to. The cash paid on June 24 equals:

Question 12

A company purchases merchandise with a catalog price of $20,500. The company receives a 30% trade discount from the seller. The seller also offers credit terms of 2/10, n/30. Assuming no returns were made and that payment was made within the discount period, what is the net cost of the merchandise?

Question 13

Garza Company had sales of $146,200, sales discounts of $2,200, and sales returns of $3,510. Garza Company's net sales equals:

Question 14

Cushman Company had $842,000 in sales, sales discounts of $12,630, sales returns and allowances of $18,945, cost of goods sold of $399,950, and $289,650 in operating expenses. Net income equals:

Question 15

Prentice Company had cash sales of $95,200, credit sales of $84,000, sales returns and allowances of $2,075, and sales discounts of $3,850. Prentice’s net sales for this period equal:

Question 16

Hull Company reported the following income statement information for the current year:

The beginning inventory balance is correct. However, the ending inventory figure was overstated by $27,000. Given this information, the correct gross profit would be:

Question 18

Giorgio had cost of goods sold of $9,625 million, ending inventory of $2,293 million, and average inventory of $2,169 million. Its inventory turnover equals:

Question 20

Jammer Company uses a weighted average perpetual inventory system and reports the following:

What is the per-unit value of ending inventory on August 31? (Round your per unit answers to 2 decimal places.)