<p> 1. Breanna Boutique reported the following year-end information:</p><p>Cash $53,000 Short-term 11,000 investments Accounts receivable 55,000 Inventory 326,000 Prepaid expenses 15,500 Accounts payable 102,500 Other current payables 29,000 </p><p>The current ratio and acid-test ratio for the boutique are ______and ______, respectively: 3.50 and .90 2.21 and 1.31 2.48 and 1.31 None of these 1.16 and</p><p>2. Karen Betz had net sales of $28,119 million, its cost of goods sold was $19,011 million, and its net income was $957 million. Its gross margin ratio (rounded) equals: 32.4%. 64.2%. 3.4%. 35.6%. 67.6%</p><p>($28,119- $19,011) = $28,119</p><p>= 32.4%</p><p>3. A company had sales of $388,000 and its gross profit was $155,000. Its cost of goods sold equals: $155,000. $233,000. $543,000. $(233,000). $(543,000). </p><p>4. A buyer failed to take advantage of the vendor's credit terms of 2/12, n/43, but instead paid the invoice in full at the end of 55 days. By not taking advantage of the cash discount, the buyer lost the equivalent of ______annual interest on the amount of the purchase. 9.2% 13.3% 30.4% 17.0% 23.5% </p><p>5. A company had sales of $699,000 and cost of goods sold of $284,000. Its gross margin equals: $(983,000). $983,000. $284,000. $415,000. $(415,000).</p><p>6. A company's gross profit was $83,150 and its net sales were $349,200. Its gross margin ratio (rounded) equals: .24%. .04%. 23.8%. $83,150. $349,200. </p><p>7. A company purchased $6,000 worth of merchandise. Transportation costs were an additional $450. The company later returned $245 worth of merchandise and paid the invoice within the 4% cash discount period. The total amount paid for this merchandise is: $5,524.80. $5,974.80. $5,092.80. $5,573.00. $6,445.20. </p><p>8. ABC Company had cash sales of $95,550, credit sales of $83,390, sales returns and allowances of $1,600, and sales discounts of $3,635. ABC's net sales for this period equal: $175,305. $90,315. $177,340. $180,975. $173,705. </p><p>9. A company records the following journal entry: debit Cash $1,330, debit Sales Discounts $70, and credit Accounts Receivable $1,400. This means that a customer has taken a ___ cash discount for early payment. 3% 4% 9% 8% 5% </p><p>10. A company purchased $3,500 of merchandise on January 5. On January 7, it returned $700 worth of merchandise. On January 8, it paid the balance in full, taking a 3% discount. The amount of the cash paid on January 8 equals: $4,074. $3,395. $2,016. $700. $2,716. </p><p>11. XYX Corporation total quick assets were $5,886,000, its current assets were $11,800,000 and its current liabilities were $8,000,000. Its acid-test ratio (rounded) equals: 1.48. 1.36. .74. .50. .74. </p><p>12. A company records the following journal entry: debit Cash $1,316, debit Sales Discounts $84, and credit Accounts Receivable $1,400. This means that a customer has taken a ___ cash discount for early payment. 5% 9% 4% 10% 6% </p><p>13. A company's current assets were $17,790, its quick assets were $11,750 and its current liabilities were $12,210. Its quick ratio (rounded) equals: 1.46. .96. .49. .69. 1.04</p><p>$11,750 Quick ratio = = 0.96 $12,210</p><p>14. A company had sales of $385,000 and its gross profit was $153,000. Its cost of goods sold equals: $232,000. $(538,000). $538,000. $(232,000). $153,000.</p><p>15. On October 1, Courtland Company sold merchandise in the amount of $5,600 to Carter Company, with credit terms of 3/10, n/30. The cost of the items sold is $4,000. Courtland uses the periodic inventory system. Carter pays the invoice on October 8, and takes the appropriate discount. The journal entry that Courtland makes on October 8 is: Cash 5,432 Accounts receivable 5,432 </p><p>Cash 5,432 Sales discounts 168 Accounts receivable 5,600 </p><p>Cash 5,600 Accounts receivable 5,600 </p><p>Cash 4,000 Accounts receivable 4,000 </p><p>Cash 3,880 Sales discounts 120 Accounts receivable 4,000 </p><p>16. A company's net sales were $671,600, its cost of good sold was $237,800 and its net income was $33,150. Its gross margin ratio (rounded) equals: 64.59%. 35.4%. 135.4%. 69.7%. 13.1%. 17. MNC Corporation total quick assets were $5,880,000, its current assets were $11,900,000 and its current liabilities were $7,000,000. Its acid-test ratio (rounded) equals: 1.19. .86. .49. .84. 1.70. </p><p>18. Herald Company had sales of $105,000, sales discounts of $1,700, and sales returns of $3,900. Herald Company's net sales equals: $99,400. $101,100. $5,600. $103,300. $110,600. </p><p>19. On August 1, Michele Company sold merchandise in the amount of $3,500 to Alberts, with credit terms of 1/10, n/30. The cost of the items sold is $4,000. Michele uses the perpetual inventory system. Alberts pays the invoice on August 8, and takes the appropriate discount. The journal entry that Michele makes on August 8 is: Cash 3,500 Accounts receivable 3,500 </p><p>Cash 4,000 Accounts receivable 4,000 </p><p>Cash 3,960 Sales discounts 40 Accounts receivable 4,000 </p><p>Cash 3,465 Sales discounts 35 Accounts receivable 3,500 </p><p>Cash 3,465 Accounts receivable 3,465 </p><p>Cash Discount = $3,500 ×0.01 = $35 Cash Paid on August 8 = 43,500 - $35 = $3,645</p><p>Journal entry:</p><p>Cash $3,465 Sales Discount $35 Accounts Receivable $3,500</p><p>20. A company had sales of $685,000 and cost of goods sold of $294,000. Its gross margin equals: $391,000. $294,000. $(391,000). $979,000. $(979,000). </p><p>21. A company has net sales and cost of goods sold of $747,000 and $545,000, respectively. Its net income is $17,450. The company's gross margin and operating expenses are ______and ______, respectively. $202,000; $184,550 $730,000; $202,000 $202,000; $729,550 $184,550; $202,000 $729,550; $527,550 </p><p>22. The credit terms 2/10, n/30 are interpreted as: 30% discount if paid within 2 days. 30% discount if paid within 10 days. 10% cash discount if the amount is paid within 2 days, with balance due in 30 days. 2% cash discount if the amount is paid within 10 days, with the balance due in 30 days. 2% discount if paid within 30 days. </p><p>23. n August 1, Robertson Company sold merchandise in the amount of $5,300 to Adam, with credit terms of 3/10, n/30. The cost of the items sold is $4,400. Robertson uses the perpetual inventory system. On August 4, Adam returns some of the merchandise. The selling price of the merchandise is $530 and the cost of the merchandise returned is $440.The entry or entries that Robertson must make on August 4 is: Accounts receivable 530 Sales returns and allowances 530 Cost of goods sold 440 Merchandise inventory 440 </p><p>Sales returns and allowances 530 Accounts receivable 530 Merchandise inventory 440 Cost of goods sold 440 </p><p>Accounts receivable 530 Sales returns and allowances 530 </p><p>Sales returns and allowances 530 Accounts receivable 530 </p><p>Sales returns and allowances 440 Accounts receivable 440 </p><p>24. On August 1, Fernanda Company sold merchandise in the amount of $5,000 to Alberts, with credit terms of 3/10, n/30. The cost of the items sold is $4,200. Fernanda uses the perpetual inventory system. The journal entry or entries that Fernanda will make on August 1 is: Accounts receivable 4,200 Sales 4,200 </p><p>Sales 5,000 Accounts receivable 5,000 </p><p>Accounts receivable 5,000 Sales 5,000 Sales 5,000 Accounts receivable 5,000 Cost of goods sold 4,200 Merchandise Inventory 4,200 </p><p>Accounts receivable 5,000 Sales 5,000 Cost of goods sold 4,200 Merchandise inventory 4,200 </p><p>25. A buyer failed to take advantage of the vendor's credit terms of 3/19, n/44, but instead paid the invoice in full at the end of 63 days. By not taking advantage of the cash discount, the buyer lost the equivalent of ______annual interest on the amount of the purchase. 24.9% 43.8% 17.4% 28.8% 9.9% </p>