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1. A company reported the following amounts of net income:

2011 $18,000
2012 $24,000
2013 $26,000

Which of the following is the percentage change in net income from 2012 to 2013? (Points : 1)
2.00%
10.00%
8.33%
7.69%
None of these is correct
2. A company reported the following amounts of net income:

2011 $18,000
2012 $24,000
2013 $26,000

Which of the following is the percentage change in net income from 2011 to 2012? (Points : 1)
33.33%
8.33%
10.00%
30.00%
None of these is correct
3. Peartree Company provides the following data:

BALANCE SHEET Dec 31, 2014 Dec 31, 2013
Cash $ 21,000 $ 18,000
Accounts receivable, net 31,000 35,000
Inventory 53,000 25,000
PP&E, net 120,000 90,000
Total assets $225,000 $168,000

Accounts payable $4,000 $ 6,000
Accrued liabilities 2,000 1,000
Long-term notes payable 84,000 90,000
Total liabilities $ 90,000 $ 97,000

Common stock $ 30,000 $ 2,000
Retained earnings 113,000 74,000
Treasury stock (8,000) (5,000)
Total stockholders’ equity $135,000 $71,000
Total liabilities and stockholders’
equity $225,000 $168,000

How much is the current ratio at year-end 2014? (Points : 1)
17.5
16.1
3.5
0.5
None of these is correct
4. Zebra, Inc. has Cost of goods sold for the year of $1,900,000. The average inventory for the year is $129,000. The inventory turnover for the year is: (Points : 1)
0.1.
14.7.
33.8.
65.5.
None of these is correct
5. Avatar Company uses the indirect method to prepare its statement of cash flows. Please refer to the following information for the year 2014.
Net cash flows from operating activities: $32,000 positive
Net cash flows from investing activities: $38,000 negative
Net cash flows from financing activities: $ 9,000 positive

How much was the net change in cash during the year? (Points : 1)
$ 3,000 negative
$79,000 positive
$ 3,000 positive
$61,000 negative
None of these is correct
6. Avatar Company uses the indirect method to prepare the statement of cash flows. Please refer to the following section of the comparative balance sheet:

2014 2013 Increase/decrease
Cash $ 33,000 $ 18,000 $15,000
Accounts receivable 22,000 35,000 (13,000)
Inventory 170,000 115,000 55,000
Total assets $225,000 $168,000 $57,000

The change in inventory will be shown as a positive cash flow in the adjustments to Net income. (Points : 1)
True
False

7. Avatar Company uses the indirect method to prepare the statement of cash flows. Please refer to the following section of the comparative balance sheet:

2014 2013 Increase/decrease
Accounts payable $ 4,000 $ 6,000 $(2,000)
Accrued liabilities 2,000 1,000 1,000
Long-term notes payable 84,000 90,000 (6,000)
Total liabilities $90,000 $97,000 $(7,000)

The change in accrued liabilities will be shown as a positive cash flow in the adjustments to Net income. (Points : 1)
True
False

8. Avatar Company uses the indirect method to prepare its statement of cash flows. Please refer to the following information for the year 2014.

Net cash flows from operating activities: $32,000 positive
Net cash flows from investing activities: $38,000 negative
Net cash flows from financing activities: $ 9,000 positive

If the beginning cash balance is $18,000, what would the ending cash balance be? (Points : 1)
$21,000
$18,000
$ 3,000
$15,000
None of these is correct
9. The statement of cash flows explains the difference between net income and the change in cash balance. (Points : 1)
True
False

10. A company has $510,000 in Average common stockholders’ equity, Net income of $312,000, and Preferred dividends paid of $15,000. What is the rate of return on common stockholders’ equity? (Points : 1)
58.2%
61.2%
59.3%
62.0%