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 average net operating ass
...
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 average 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]