Reference no: EM13863632
1. Nancy's Cookie Shop reported equipment at $120,000 and $30,000 accumulated depreciation on its December 31, 2013, balance sheet. During 2014, the shop purchased equipment costing $30,000 and sold equipment costing $10,000 (book value $4,000) for $1,000. On December 31, 2014, net equipment was $98,000. Using the indirect method, Samantha's would report depreciation expense on its statement of cash flows for 2014 of:
$18,000.
$14,000.
$22,000.
$30,000.
2. Short-term liquidity ratios include the:
acid-test ratio.
payout ratio.
debt to total assets ratio.
profit margin ratio.
3. Sunshine Paint reported sales of $500,000, total assets of $300,000, total owners' equity of $160,000, current assets of $100,000, current liabilities of $40,000, and cash of $30,000. In a common-size analysis of the balance sheet, cash would be shown as:
30%.
6%.
50%.
10%.
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Short-term liquidity ratios include
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