Financial Accounting > EXAMs > Final Exam. Jackson State University ACC 501 . (All)

Final Exam. Jackson State University ACC 501 .

Document Content and Description Below

QUESTION 1 Correct 4.00 points out of 4.00 Kroger's 2016 financial statements show net operating profit after tax of 2,286 million, net income of $1,975 million, sales of $115,337 million, and avera ... ge net operating assets of 18,616 million. Kroger's net operating asset turnover for the year is: Select one: A. 12.3% B. 8.11 C. 6.20 D. 10.9% E. There is not enough information to calculate the ratio. Rationale: Net operating asset turnover = Sales / Average net operating assets = $115,337 million / $18,616 million = 6.20 Final Exam 10/13/17, 1(15 PM https://mybusinesscourse.com/platform/mod/quiz/review.php?attempt=1403017&showall=1 Page 2 of 36 QUESTION 2 Correct 4.00 points out of 4.00 Mattel Inc.'s 2016 financial statements show operating profit before interest and tax of $519,233 thousand, net income of $318,022 thousand, provision for income taxes of $91,720 thousand and net nonoperating expense before tax of $109,491 thousand. Assume Mattel’s statutory tax rate for 2016 is 37%. Mattel's 2016 tax shield is: Select one: A. $ 68,979 thousand B. $ 40,512 thousand C. $277,510 thousand D. $186,460 thousand E. None of the above Rationale: Tax shield = Net nonoperating expense before tax × statutory tax rate = $109,491 × 37% = $40,512 thousand QUESTION 3 Correct 4.00 points out of 4.00 Which one of the following is not correct? Select one: A. For debt issued at par: interest expense reported on the income statement equals the cash paid for interest. B. For bond repurchases: Gain (loss) on bond repurchase = Cash paid to repurchase – Net book value of bonds. C. For debt issued at a discount: interest expense reported on the income statement equals cash interest payment less amortization of the discount. ! D. For debt issued at a premium, interest expense reported on the income statement equals cash interest payment less amortization of the premium [Show More]

Last updated: 3 years ago

Preview 1 out of 36 pages

Buy Now

Instant download

We Accept: