I have some cost accounting questions and need how to arrive at the solution. I have the solutions posted. I think all the solutions I’m providing are correct. These problems are not that difficult. S

I have some cost accounting questions and need how to arrive at the solution. I have the solutions posted. I think all the solutions I’m providing are correct. These problems are not that difficult. Somehow, I need to see how to set the problems up. Thanks!

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41. Boggs Company has 40,000 shares of common stock outstanding. The book value per share
of this stock was $60.00 and the market value per share was $75.00 at the end of the year. Net
income for the year was $400,000. Interest on long term debt was $40,000. Dividends paid to
common stockholders were $3.00 per share. The tax rate was 30%. The company’s price-
earnings ratio at the end of the year was:
A. 25
B. 20
C. 7.50
D. 6.00
C
42. Last year the return on total assets in Jeffrey Company was 8.5%. The total assets were 2.9
million at the beginning of the year and 3.1 million at the end of the year. The tax rate was 30%,
interest expense totaled $110 thousand, and sales were $5.2 million. Net income for the year
was:
A. $145,000
B. $222,000
C. $332,000
D. $178,000
D
43. Brandon Company’s net income last year was $65,000 and its interest expense was $20,000.
Total assets at the beginning of the year were $640,000 and total assets at the end of the year
were $690,000. The company’s income tax rate was 30%. The company’s return on total assets
for the year was closest to:
A. 9.8%
B. 10.7%
C. 12.8%
D. 11.9%
D
Selected year-end data for the Brayer Company are presented below:

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The company has no prepaid expenses and inventories remained unchanged during the year.
Based on these data, the company’s inventory turnover ratio for the year was closest to:
A. 1.20
B. 2.40
C. 1.67
D. 2.33
C
54. Brewster Company has an acid-test ratio of 1.5 and a current ratio of 2.5. Current assets
equal $200,000, of which $10,000 is prepaid expenses. The company’s current assets consist of
cash, marketable securities, accounts receivable, prepaid expenses, and inventory. Brewster
Company’s inventory must be:
A. $30,000
B. $110,000
C. $70,000
D. $80,000
C
55. Cotuit Company has a current ratio of 3.2 and an acid-test ratio of 2.4. The company’s current
assets consist of cash, marketable securities, accounts receivable, and inventory. The company’s
inventory is $40,000. Cotuit Company’s current liabilities must be:
A. $40,000
B. $120,000
C. $50,000
D. $32,000
C
58. Grasse Company had $160,000 in sales on account last year. The beginning accounts
receivable balance was $10,000 and the ending accounts receivable balance was $12,000. The
company’s average collection period was closest to:
A. 25.09 days
B. 22.81 days
C. 50.19 days
D. 27.38 days
B
Financial statements for Harwich Company for the most recent year appear below:

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