Reference no: EM132329722
Question 1
If the market rate of interest is 6%, the issue price of 6% bonds paying interest semiannually with a face value of $100,000 will be Greater than or less than $100,000, depending on the maturity date of the bonds
Greater than $100,000
Less than $100,000
Equal to $100,000
Question 2
Hot Shot Delivery Inc. provides the following year end data:
2018 2017
Cash $65,000 $38,000
Accounts Receivable 60,000 39,000
Merchandise Inventory 66,000 26,000
Property, Plant & Equip 219,000 154,000
Total Assets 410,000 257,000
Sales Revenue $530,000
Cost of Goods Sold 180,000
Interest Expense 30,000
Net Income 112,000
Calculate the rate of return on total assets for 2018.
Question 3
Based on the following data for the current year, what is the accounts receivable turnover?
Net sales on account during year $400,000
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
Question 4
Based on the following data for the current year, what is the number of days' sales in accounts receivable?
Net sales on account during year $584,000
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
Question 5
Lone Start Golf, Inc. provides the following information for 2018.
Net Income $380,000
Market price per share of Common Stock $60 per share
Dividends paid to Common Stock holders $180,000
Common Stock outstanding at Jan. 1 2018 170,000 shares
Common Stock outstanding at Dec. 31 2018 220,000 shares
There is no preferred stock outstanding. Calculate the earnings per share for 2018.