Rosalie Corporation Is Located in Los Angeles but Does Business

question 23

Multiple Choice

Rosalie Corporation is located in Los Angeles but does business throughout Europe.The company builds and sells equipment used in manufacturing pharmaceuticals.On December 31, 2011, Rosalie's accounts receivable are as follows: Rosalie Corporation determines that Finley Company's receivable is impaired by $40,000 and Hunter, Inc.'s receivable is totally impaired.The other receivables from Rafael and Rios are not considered impaired.Rosalie determines that a composite rate of 2% is appropriate to measure impairment on all other receivables.What is the total impairment of receivables for Rosalie Corporation for 2011?

• A)$156,400
• B)$140,000
• C)$150,000
• D)$123,600

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Definitions:

Debt to Total Assets

A financial ratio that shows the proportion of a company's assets that are financed through debt.

Basic Earnings per Share

A measure of a company's profitability, calculated by dividing net income by the number of outstanding common shares.

Industry Averages

Statistical measures that represent the typical value or norm within a particular industry, used for benchmarking and comparative analysis.

Horizontal Analysis

Horizontal analysis, also known as trend analysis, is a financial analysis technique that compares historical financial data over a series of periods to identify trends, increases, or decreases in financial performance.