Below is financial data for Fawnsworth Industries' current year. Net sales on account during year $500,000 Cost of merchandise sold during year 300,000 Accounts receivable, beginning of year 45,000 Accounts receivable, end of year 35,000 Inventory, beginning of year 90,000 Inventory, end of year 110,000 Refer to the data for Fawnsworth Industries. Based on this information, what is Fawnsworth's
number of days' sales in inventory (assuming a 360 day year)?
a. 132 days
b. 216 days
c. 1,091 days
d. 120 days
d
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On January 1, 2016, Francisco Company's balance in retained earnings was $80,000 . During 2016, the company earned net income of $43,000 and paid $15,000 in dividends. Calculate the retained earnings balance at December 31, 2016
a. $42,000 b. $90,000 c. $98,000 d. $108,000
Arena, Inc uses straight-line depreciation for its equipment. Arena purchased equipment for $300,000 and estimated its useful life at 8 years. The bookkeeper failed to consider the residual value of $50,000 . What is the impact on earnings per share and operating income of failing to consider the residual value?
a. Earnings per share will be overstated and operating income will be understated. b. Earnings per share will be understated and operating income will be overstated. c. Both earnings per share and operating income will be overstated. d. Both earnings per share and operating income will be understated.
Which, if any, of the following expenses is subject to the 2%-of-AGI floor?
a. Qualified tuition expenses under § 222. b. Contribution to traditional IRA. c. Cost of a CPA exam review course—taxpayer just began employment with an accounting firm. d. Office in the home deduction for a self-employed taxpayer. e. None of these.
The aim of marketing is to
A. eliminate the need for exchanges. B. identify customers' needs and meet those needs so well that the product almost "sells itself." C. facilitate a single transaction. D. persuade customers to buy the firm's product. E. help create a pure subsistence economy.