QRB 501 Week 4 Practice Quiz 

1. Prepare a balance sheet for the bakery for December 31, 2012. The company assets include cash, $2002, Accounts Receivable, $4130, and merchandise inventory, $2514. The liabilities include Accounts Payable, $3455, wages payable, $1667. The owner’s capital is $3524.
Prepare the balance sheet
2. Complete the vertical analysis on the balance sheet for the bakery for 2012.
3. Complete the horizontal analysis showing differences in dollar amounts and percents on the comparative balance sheet for the bakery.
4. Find a percent of total debt compared to total assets, divide the total liabilities by the total assets and write in percent form. Find the total debt to total assets for the bakery for 2012.
5. Complete the portion for July 31, 2011, of the income statement shown for miss muffin’s bakery using the given information: gross sales $35,568, returns and allowances, $341, cost of beginning inventory, $17,166, cost of purchases, $27,743, cost of ending inventory, $22,037, total operating expenses, $3097, compute net sales, cost of goods sold, gross profit, and net income.
6. Extend the income statement for miss muffin’s bakery to include a vertical analysis for 2010 in 2011.
7. Extend income statement for miss muffin’s bakery to include the amounts of increase or decrease and the percents of increase or decrease for a horizontal analysis.
8. What is the current ratio for Denmark, Inc., which has current assets of $160,860 and current liabilities of $121,409?
9. Find the gross profit margin ratio if The Premier Eatery had net sales of $393, 279 and its cost of goods sold was $171, 640.
The gross profit margin ratio is ____to 1. (Type an integer or decimal rounded to three decimal places as needed.)
10) Company A reported net sales of $264, 552 and had average total assets of $134, 688. Find its asset turnover ratio.
The asset turnover ratio is _________ (Type an integer or decimal rounded to the nearest hundredth as needed.)
11) Find the current ratio for George and and the current ratio for Jose’s businesses given the following information
George Jose
Current assets $29,000 $880,000
Current liabilities – 7000 – 858,000
Working capital $22,000 $22,000
George’s current ratio ____________ (Type an integer or decimal rounded to two decimal places as needed.)
Jose’s current ratio ____________ (Type an integer or decimal rounded to two decimal places as needed.)
12. Find the acid-test ratio for a business if the balance sheet shows the following amounts: cash, $32,544; receivables, $11,033; marketable securities, $0; current liabilities, $24,226.
The acid-test ratio is _________ (Type an integer or decimal rounded to the nearest hundredth as needed.)

13) Find the operating ratio for Sol’s Dry Goods if the income statement for the month shows net sales, $15500; cost of goods sold, $7500; gross profit, $7000; operating expenses, $4500; net income, $5500. Express results to the nearest tenth of a percent.