- 1 Strayer ACC 556 Final Part 2
- 2 STATUS
Strayer ACC 556 Final Part 2
A manager of a cost center is evaluated mainly on
Bogey Co. recorded operating data for its Cheap division for the year. Bogey requires its return to be 10%.
Sales $ 1,400,000
Controllable margin 160,000
Total average assets 4,000,000
Fixed costs 100,000
What is the ROI for the year?
Ratios are used as tools in financial analysis
Which of the following is not typically a characteristic experienced by a company during the growth phase of the corporate life cycle?
A master budget consists of
The date on which a cash dividend becomes a binding legal obligation is on the
If there were 60,000 pounds of raw materials on hand on January 1, 120,000 pounds are desired for inventory at January 31, and 410,000 pounds are required for January production, how many pounds of raw materials should be purchased in January?
All of the following statements regarding changes in accounting principles are true except which of the following?
On the basis of the budget reports,
Holden Packaging Corporation began business in 2014 by issuing 80,000 shares of $5 par common stock for $8 per share and 20,000 shares of 6%, $10 par preferred stock for par. At year end, the common stock had a market value of $10. On its December 31, 2014 balance sheet, Holden Packaging would report
The primary purpose of the statement of cash flows is to
Cochran Corporation, Inc. has the following income statement (in millions):
COCHRAN CORPORATION, INC.
For the Year Ended December 31, 2014
Net Sales $240
Cost of Goods Sold 80
Gross Profit 160
Operating Expenses 65
Net Income $ 95
Using vertical analysis, what percentage is assigned to net income?
The following information pertains to Marsh Company. Assume that all balance sheet amounts represent average balance figures.
Total asset $400,000
Stockholders’ equity—common 200,000
Total stockholders’ equity 280,000
Sales revenue 120,000
Net income 25,000
Number of shares of common stock 8,000
Common dividends 9,000
Preferred dividends 6,000
What is Marsh’s payout ratio?
Name: Jennifer Lucas
Status: Online ⬤
Classes Taken: 3878
A flexible budget
A comparison with other companies that provides insight into a company’s competitive position is most commonly known as which of the following types of comparisons?
Assume the following sales data for a company:
If 2013 is the base year, what is the percentage increase in sales from 2013 to 2014?
Laser Performance Inc. has the following information available (amount in thousands).
Net Income $30,000
Average Total Liabilities 80,000
Average Current Liabilities 36,000
Cash Provided by Operations 48,000
Cash Sales 130,000
Capital Expenditures 22,000
Dividends Paid 6,000
What is the current cash debt coverage?
Which of the following income statement figures would probably be the best indicator of a company’s future performance?
Which one of the following is not a benefit of budgeting?
The single most important output in preparing financial budgets is the
Zoum Corporation had the following transactions during 2014:
1 – Issued $125,000 of par value common stock for cash.
2 – Recorded and paid wages expense of $60,000.
3 – Acquired land by issuing common stock of par value $50,000.
4 – Declared and paid a cash dividend of $10,000.
5 – Sold a long-term investment (cost $3,000) for cash of $3,000.
6 – Recorded cash sales of $400,000.
7 – Bought inventory for cash of $160,000.
8 – Acquired an investment in Zynga stock for cash of $21,000.
9 – Converted bonds payable to common stock in the amount of $500,000.
10 – Repaid a 6 year note payable in the amount of $220,000.
What is the net cash provided by operating activities?
A critical factor in budgeting for a service firm is to
If the board of directors authorizes a $100,000 restriction of retained earnings for future plant expansion, the effect of this action is to
Which one of the following items is not necessary for preparing a statement of cash flows?
Quincy Corp. earned a controllable margin of $500,000 on sales of $6,400,000. The division had average operating assets of $5,200,000. The company requires a return on investment of at least 8%. How much is residual income?