Which of the following ratios would not be the best measure of solvency?
A) Return on assets ratio
B) Debt-to-equity ratio
C) Debt service coverage ratio
D) Times-interest-earned ratio
A
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Abbott Company uses the estimate of sales method of accounting for uncollectible accounts. Abbott estimates that 3% of all credit sales will be uncollectible. On January 1, 2009, the Allowance for Doubtful Accounts had a credit balance of $2,400. During 2009, Abbott wrote-off accounts receivable totaling $1,800 and made credit sales of $100,000. After the adjusting entry, the December 31, 2009,
balance in the Uncollectible Accounts Expense would be A) $1,200 B) $3,000 C) $3,600 D) $7,200
For John Sidanta, CEO and founder of Primaplast, a manufacturer of biodegradable plastic drinking straws made from recycled material, crafting and executing a strategy is a top-priority managerial task because it
A. allows Primaplast company personnel, and especially senior executives, to know the answer to "who are we, what do we do, and where are we headed?" B. provides Primaplast with clear guidance as to what the company's business model and strategic intent are, and helps keep managerial decision-making from being rudderless. C. helps Primaplast management create tight fits between a company's strategic vision and business model. D. is Primaplast management's prescription for doing business, its roadmap to competitive advantage, a game plan for pleasing customers, and its formula for improving performance, especially in light of impending community and some food service outlets' bans on conventional plastic drinking straws. E. establishes how well Primaplast executives perform these tasks and are the key determinants of executive compensation.
Letter of credit transactions involve ______ contract(s)
A) one (1 ) B) two (2 ) C) three (3 ) D) four (4 )
Younis Corporation's income statement appears below:Income StatementSales (all on account)$1,240,000 Cost of goods sold 780,000 Gross margin 460,000 Operating expenses 416,571 Net operating income 43,429 Interest expense 14,000 Net income before taxes 29,429 Income taxes (30%) 8,829 Net income$20,600 The company's net profit margin percentage is closest to:
A. 1.7% B. 2.4% C. 37.1% D. 3.5%