Business > QUESTIONS & ANSWERS > BUS 020 - Practice Final Answers Version O Solution (All)

BUS 020 - Practice Final Answers Version O Solution

Document Content and Description Below

VERSION O SOLUTION Fall 2014 INSTRUCTIONS: On a Scantron, mark the most correct response to each following question. 1. Items should be reported as part of the company's "inventory" at year end, i... f they are a. Purchased from a creditor and available for sale. b. Held in anticipation of an increase in market value. c. Ordered online and in shipment under terms f.o.b destination. d. Sold during the period. 2. Which one of the following ratios is a common analytical tool used on merchandise corporations, but not on service corporations? a. Earnings per share b. Gross profit ratio c. Current ratio d. Profit margin Data for #3 to #5: Givens Corp. is a merchandising company that uses the periodic inventory system. Selected account balances are listed below: Sales $500,000 Purchases 225,000 Inventory (beginning) 16,000 Inventory (ending) 30,000 Operating Expenses 148,000 Income Tax Expense 10,000 Retained Earnings (beginning) 53,000 Dividends 15,000 3. Calculate the cost of goods sold for Givens Corporation: a. $275,000 b. $259,000 c. $241,000 d. $211,000 4. Calculate the Income from Operations (or Operating Income) for Givens Corporation: a. $289,000 b. $141,000 c. $131,000 d. $116,000 5. Calculate the year end Retained Earnings for Givens Corporation: a. $38,000 [Show More]

Last updated: 2 years ago

Preview 1 out of 13 pages

Buy Now

Instant download

We Accept: