Reference no: EM132608189

Question 1) Assume the following sales data for a company:

Current year $892,957

Preceding year 646,502

What is the percentage increase in sales from the preceding year to the current year (rounded to one decimal place)?

a. 38.1%

b. 27.6%

c. 10.5%

d. 65.7%

Question 2) A company with $70,000 in current assets and $50,000 in current liabilities pays a $1,000 current liability. As a result of this transaction, the current ratio and working capital will

a. increase and remain the same, respectively

b. both decrease

c. remain the same and decrease, respectively

d. both increase

Question 3) Balance sheet and income statement data indicate the following:

Bonds payable, 10% (due in two years) $829,000

Preferred 5% stock, $100 par (no change during year) 300,000

Common stock, $50 par (no change during year) 2,058,000

Income before income tax for year 305,000

Income tax for year 73,000

Common dividends paid 102,900

Preferred dividends paid 15,000

Based on the data presented, what is the times interest earned ratio (rounded to one decimal place)?

a. 4.7

b. 6.4

c. 3.7

d. 2.7