Mahoe Corporation has provided the following financial data:Balance SheetDecember 31, Year 2 and Year 1AssetsYear 2Year 1Current assets: Cash$105,000 $190,000 Accounts receivable, net 255,000 220,000 Inventory 206,000 200,000 Prepaid expenses 44,000 50,000 Total current assets 610,000 660,000 Plant and equipment, net 1,065,000 970,000 Total assets$1,675,000 $1,630,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable$119,000 $110,000 Accrued liabilities 88,000 80,000 Notes payable, short term 53,000 50,000 Total current liabilities 260,000 240,000 Bonds payable 110,000 110,000 Total liabilities 370,000 350,000 Stockholders' equity: Common stock, $5 par
value 250,000 250,000 Additional paid-in capital 70,000 70,000 Retained earnings 985,000 960,000 Total stockholders' equity 1,305,000 1,280,000 Total liabilities & stockholders' equity$1,675,000 $1,630,000 Income StatementFor the Year Ended December 31, Year 2Sales (all on account)$1,330,000 Cost of goods sold 890,000 Gross margin 440,000 Operating expenses 393,571 Net operating income 46,429 Interest expense 10,000 Net income before taxes 36,429 Income taxes (30%) 10,929 Net income$25,500 Dividends on common stock during Year 2 totaled $500. The market price of common stock at the end of Year 2 was $8.06 per share.The company's operating cycle for Year 2 is closest to:
A. 87.7 days
B. 148.5 days
C. 70.8 days
D. 10.0 days
Answer: B
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The term for the process of recording accounting transactions in the general journal is:
A) analyzing. B) journalizing. C) posting. D) classifying.
Ajax Computer Company is an accrual-method calendar-year taxpayer. Ajax has never advertised in the national media prior to this year. In November of this year, however, Ajax paid $1 million for television advertising time during a "super" sporting event scheduled to take place in early February of next year. In addition, in November of this year the company paid $500,000 for a one-time advertising blitz during a professional golf tournament in April of next year. What amount of these payments, if any, can Ajax deduct this year?
A. $1.5 million B. $1.5 million only if the professional golf tournament is played before April 15 C. $1 million D. $500,000 E. No deduction can be claimed this year
Which of the following is a disadvantage of the factor comparison method of job evaluation?
A. It is complicated because it breaks down compensable factors into subfactors. B. It is not easily adapted to changes in the jobs being evaluated. C. It fails evaluate jobs on a component basis. D. It disregards external market wage rates.
Hard quotas:
A. systematically favor women and minorities in hiring and promotion decisions. B. are a concerted effort by an organization to actively expand its pool of applicants so that no one is excluded because of past or present discrimination. C. represent a mandate to hire or promote specific numbers or proportions of women or minority group members. D. are a commitment to treat all races and both sexes equally in all decisions about hiring, promotion, and pay.