Managerial Accounting 13ce by Alan Webb Ray Garrison,
Theresa Libby (Test Bank All Chapters, 100% Original Verified, A
+ Grade) Answers At The End Of Each Chapter
All Chapters Are Arranged Reversed From 14-1
Chapter 14
Student name:__________
1) The Seabury Corporation has a current ratio of 3.8 and an acid-test ratio of 3.1. The
corporation's current assets consist of cash, temporary investments, accounts receivable, and
inventories. Inventory equals $63,000. Seabury Corporation's current liabilities must
be:(Round your intermediate calculations to 1 decimal place.)
A) $63,000
B) $279,000
C) $44,100
D) $90,000
2) Data from Fontecchio Corporation's most recent balance sheet appear below:
Cash $ 23,000
Temporary investments $ 27,000
Accounts receivable $ 45,760
Inventory $ 64,000
Prepaid expenses $ 18,000
Current liabilities $ 152,000
The corporation's acid-test ratio is closest to:
A) 0.33
B) 0.18
C) 0.63
D) 0.45
3) Feiler Corporation has total current assets of $521,000, total current liabilities of $385,000,
total shareholders' equity of $1,095,000, total plant and equipment (net) of $1,069,000, total
assets of $1,590,000, and total liabilities of $495,000. The company's current ratio is closest
to:
A) 0.78
B) 1.05
C) 1.35
D) 2.16
Version 1 1
,Chapter 14
4) Gnas Corporation's total current assets are $243,000, its noncurrent assets are $623,000, its
total current liabilities are $182,000, its long-term liabilities are $512,000, and its
shareholders' equity is $172,000. The current ratio is closest to:
A) 1.34
B) 0.75
C) 1.41
D) 1.06
5) Dratif Corporation's working capital is $50,000 and its current liabilities are $148,000. The
corporation's current ratio is closest to:
A) 1.34
B) 0.34
C) 2.34
D) 0.75
6) Dennisport Corporation has an acid-test ratio of 2.4. It has current liabilities of $54,000 and
noncurrent assets of $85,000. The corporation's current assets consist of cash, temporary
investments, accounts receivable, prepaid expenses, and inventory. If Dennisport's current
ratio is 2.8, its inventory and prepaid expenses must be:
A) $66,200
B) $21,600
C) $86,800
D) $74,400
7) Calin Corporation has total current assets of $617,000, total current liabilities of $233,000,
total stockholders’ equity of $1,185,000, total plant and equipment (net) of $960,000, total
assets of $1,577,000, and total liabilities of $392,000. The company’s working capital is:
A) $392,000
B) $343,000
C) $384,000
D) $458,000
Version 1 2
,Chapter 14
8) McRae Corporation's total current assets are $408,000, its noncurrent assets are $521,000, its
total current liabilities are $354,000, its long-term liabilities are $271,000, and its
shareholders' equity is $304,000. Working capital is:
A) $113,000
B) $54,000
C) $167,000
D) $104,000
9) Erastic Corporation has $19,000 in cash, $10,500 in temporary investments, $41,500 in
account receivable, $50,000 in inventories, and $47,000 in current liabilities. The
corporation’s current assets consist of cash, temporary investments, accounts receivable, and
inventory. The corporation’s acid-test ratio is closest to:
A) 1.51
B) 0.88
C) 2.57
D) 1.29
10) Windham Corporation has current assets of $660,000 and current liabilities of $825,000.
Windham Corporation's current ratio would be increased by:
A) the purchase of $360,000 of inventory on account.
B) the payment of $360,000 of accounts payable.
C) the collection of $360,000 of accounts receivable.
D) refinancing a $360,000 long-term loan with short-term debt.
11) Stimac Corporation has total cash of $295,000, no temporary investments, total current
receivables of $366,000, total inventory of $185,000, total prepaid expenses of $70,000, total
current assets of $916,000, total current liabilities of $312,000, total stockholders’ equity of
$2,714,000, total assets of $3,965,000, and total liabilities of $1,251,000. The company’s
acid-test (quick) ratio is closest to:
A) 2.34
B) 1.91
C) 2.94
D) 2.12
Version 1 3
, Chapter 14
12) Orem Corporation's current liabilities are $254,840, its long-term liabilities are $1,327,560,
and its working capital is $356,800. If the corporation's debt-to-equity ratio is 0.46, total
long-term assets must equal:
A) $3,440,000
B) $4,665,600
C) $4,410,760
D) $3,856,760
13) Irawaddy Company, a retailer, had cost of goods sold of $795,000 last year. The beginning
inventory balance was $52,000 and the ending inventory balance was $54,000. The
company's average sale period was closest to:
A) 24.33 days
B) 0.04 days
C) 15.00 days
D) 4.19 days
14) Natcher Corporation’s accounts receivable at the end of Year 2 was $146,000 and its
accounts receivable at the end of Year 1 was $155,000. The company’s inventory at the end
of Year 2 was $149,000 and its inventory at the end of Year 1 was $141,000. Sales, all on
account, amounted to $1,402,000 in Year 2. Cost of goods sold amounted to $821,000 in
Year 2. The company’s operating cycle for Year 2 is closest to:(Round your intermediate
calculations to 1 decimal place.)
A) 48.5 days
B) 73.3 days
C) 69.7 days
D) 103.2 days
15) Granger Corporation had $194,000 in sales on account last year. The beginning accounts
receivable balance was $10,000 and the ending accounts receivable balance was $18,000.
The corporation's average collection period was closest to:(Round your intermediate
calculations to 2 decimal places.)
A) 18.8 days
B) 26.3 days
C) 33.9 days
D) 13.9 days
Version 1 4
