Reference no: EM131785957

Problems

1. For 2014, LBJ Corporation reported net income of $37,500; net sales $562,500; and weighted average shares outstanding of 7,500. There were no preferred dividends. What was the 2014 earnings per share?

$75.00

$50.00

$15.00

$5.00

2. Selling a long-term asset is an example of a(n)

operating activity.

investing activity.

financing activity.

noncash investing and financing activity.

3. On a classified balance sheet, which is the least liquid asset listed below?

Inventories

Cash and cash equivalents

Accounts receivable, net

Short-term investments

4. The following items are taken from the financial statements of PQR Company for 2012:

Cash	$250,000
Accounts Receivable	150,000
Prepaid Rent	120,000
Accounts Payable	168,000
Unearned Service Revenue	25,000
Equipment, net of accumulated depreciation	333,000
Common Stock	250,000
Retained Earnings 12/31/2011	41,000
Long-term debt	300,000
Service revenue	165,000
Cost of Goods Sold	50,000
Rent expense	24,000
Supplies expense	10,000
Insurance expense	12,000

Instructions:

(a) Create a classified Balance Sheet in good form for the year ended 2012.

(b) Calculate the current ratio.