Exhibit 4-1Given the following information for Blue Bell Company for last year:
Net sales (all on account)
$5,200,000
Cost of goods sold
2,080,000
Interest expense
240,000
Income tax expense
280,000
Net income
420,000
Income tax rate
40%
Total assets:
?
?
January 1
$1,800,000
?
December 31
2,400,000
Shareholders' equity (all common):
?
?
January 1
1,500,000
?
December 31
1,600,000
Current assets, December 31
700,000
Quick assets, December 31
400,000
Current liabilities, December 31
300,000
Net accounts receivable:
?
?
January 1
200,000
?
December 31
180,000
Inventory:
?
?
January 1
210,000
?
December 31
250,000
?
?
Refer to Exhibit 4-1. Blue Bell's current ratio at December 31 was
A. 3.67 times
B. 2.33 times
C. 1.33 times
D. 0.43 times
Answer: B
You might also like to view...
Temporal aggregation refers to ______.
A. temporarily aggregating customer orders until economies of scale can be achieved B. combining orders from the same customer over a period of time C. waiting to make sure customer has ordered a full truckload D. waiting for customers in a given country to order such that a full shipload of products can be accumulated
Using common-size financial statements:
a. is a very effective way to search for fraud symptoms related to changes in account balances. b. is a process whereby financial statements are converted to various financial ratios for easy analysis. c. allows a fraud examiner to definitively conclude that management is committing financial statement fraud. d. allows comparisons between companies in the same industry to highlight variations in performance.
A distribution of profits to owners is called ____________________
Fill in the blank(s) with correct word
When brainstorming is conducted with a heterogeneous group of people, the diversity of perspectives and viewpoints results in confusion and poor problem solving
Indicate whether the statement is true or false.