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The Following Are the Income Statements and Balance Sheets for Coors

question 94

Multiple Choice

The following are the income statements and balance sheets for Coors Company: $\begin{array}{ll}&20X2\\\text { Sales (onlycredit sales) } & \$ 1,606.0 \\\text { Less cost of goods sold } & \underline{1,062.0} \\\text { Gross profit } & \$ 544.0 \\\text { Less operating expenses } & \underline{322.0} \\\text { Operatingincome } & \$ 222.0 \\\text { Less other expense: Interest } & \underline{9.6} \\\text { Income before tax } & \$ 212.4 \\\text { Less income tax expense } & \underline{\$ 5.0} \\\text { Net income } & \$ 127.4\end{array}$

$\begin{array}{llllll}\text { Currentassets: } & {\underline{20 X 2}} & \underline{20 X 1} & \text { Currentliab: } & \underline{20 X 2} & \underline{20 X 1} \\\text { Cash } &\$36 &\$38 & \text { Accts payable }& \$98& \$ 64 \\\text { Accts receivable } & 180 & 144 & \text { Wages payable } & 18 & 16\end{array}$ $\begin{array}{ll}&20X2\\\text { Sales (onlycredit sales) } & \$ 1,606.0 \\\text { Less cost of goods sold } & \underline{1,062.0} \\\text { Gross profit } & \$ 544.0 \\\text { Less operating expenses } & \underline{322.0} \\\text { Operatingincome } & \$ 222.0 \\\text { Less other expense: Interest } & \underline{9.6} \\\text { Income before tax } & \$ 212.4 \\\text { Less income tax expense } & \underline{\$ 5.0} \\\text { Net income } & \$ 127.4\end{array}$

$\begin{array}{llllll}\text { Currentassets: } & {\underline{20 X 2}} & \underline{20 X 1} & \text { Currentliab: } & \underline{20 X 2} & \underline{20 X 1} \\\text { Cash } &\$36 &\$38 & \text { Accts payable }& \$98& \$ 64 \\\text { Accts receivable } & 180 & 144 & \text { Wages payable } & 18 & 16\end{array}$ $The following are the income statements and balance sheets for Coors Company: \begin{array}{ll}&20X2\\ \text { Sales (onlycredit sales) } & \$ 1,606.0 \\ \text { Less cost of goods sold } & \underline{1,062.0} \\ \text { Gross profit } & \$ 544.0 \\ \text { Less operating expenses } & \underline{322.0} \\ \text { Operatingincome } & \$ 222.0 \\ \text { Less other expense: Interest } & \underline{9.6} \\ \text { Income before tax } & \$ 212.4 \\ \text { Less income tax expense } & \underline{\$ 5.0} \\ \text { Net income } & \$ 127.4 \end{array} \begin{array}{llllll} \text { Currentassets: } & {\underline{20 X 2}} & \underline{20 X 1} & \text { Currentliab: } & \underline{20 X 2} & \underline{20 X 1} \\ \text { Cash } &\$36 &\$38 & \text { Accts payable }& \$98& \$ 64 \\ \text { Accts receivable } & 180 & 144 & \text { Wages payable } & 18 & 16 \end{array} \begin{array}{ll}&20X2\\ \text { Sales (onlycredit sales) } & \$ 1,606.0 \\ \text { Less cost of goods sold } & \underline{1,062.0} \\ \text { Gross profit } & \$ 544.0 \\ \text { Less operating expenses } & \underline{322.0} \\ \text { Operatingincome } & \$ 222.0 \\ \text { Less other expense: Interest } & \underline{9.6} \\ \text { Income before tax } & \$ 212.4 \\ \text { Less income tax expense } & \underline{\$ 5.0} \\ \text { Net income } & \$ 127.4 \end{array} \begin{array}{llllll} \text { Currentassets: } & {\underline{20 X 2}} & \underline{20 X 1} & \text { Currentliab: } & \underline{20 X 2} & \underline{20 X 1} \\ \text { Cash } &\$36 &\$38 & \text { Accts payable }& \$98& \$ 64 \\ \text { Accts receivable } & 180 & 144 & \text { Wages payable } & 18 & 16 \end{array} 32 \begin{array}{llllll} \text { Inventory } & 120 & 100 & \text { Taxes payable } & 28 & 4 \\ \text { Prep aid rent } & \underline{20} & \underline{24} & \text { Current portion } & &\\ \text { Total current assets }&\$356&\$306&\text { of long-term debt }&30&6\\ \text { Long-term as sets: }&&&\text { Total current }\\\text { Fixed ass ets } & \$ 320 & \$ 316 & \text { liabilities } & \$ 174 & \$ 90 \\ \text { Accum. deprec. } & \underline{(200) } & \underline{(180) } & \text { Long-term } & \underline{66} & \underline{92}\\&&&\text { liabilities }\\\text { Total long-term } & \$ 114 & \$ 136 & \text { Total liabilities } & \$ 240 & \$ 182\\\text { assets }\\ \end{array} The return on sales for Coors Company in 20X2 is: A) 13.8% B) 7.9% C) 33.9% D) 23.4%$ 32 $\begin{array}{llllll}\text { Inventory } & 120 & 100 & \text { Taxes payable } & 28 & 4 \\\text { Prep aid rent } & \underline{20} & \underline{24} & \text { Current portion } & &\\\text { Total current assets }&\$356&\$306&\text { of long-term debt }&30&6\\\text { Long-term as sets: }&&&\text { Total current }\\\text { Fixed ass ets } & \$ 320 & \$ 316 & \text { liabilities } & \$ 174 & \$ 90 \\\text { Accum. deprec. } & \underline{(200) } & \underline{(180) } & \text { Long-term } & \underline{66} & \underline{92}\\&&&\text { liabilities }\\\text { Total long-term } & \$ 114 & \$ 136 & \text { Total liabilities } & \$ 240 & \$ 182\\\text { assets }\\\end{array}$

$The following are the income statements and balance sheets for Coors Company: \begin{array}{ll}&20X2\\ \text { Sales (onlycredit sales) } & \$ 1,606.0 \\ \text { Less cost of goods sold } & \underline{1,062.0} \\ \text { Gross profit } & \$ 544.0 \\ \text { Less operating expenses } & \underline{322.0} \\ \text { Operatingincome } & \$ 222.0 \\ \text { Less other expense: Interest } & \underline{9.6} \\ \text { Income before tax } & \$ 212.4 \\ \text { Less income tax expense } & \underline{\$ 5.0} \\ \text { Net income } & \$ 127.4 \end{array} \begin{array}{llllll} \text { Currentassets: } & {\underline{20 X 2}} & \underline{20 X 1} & \text { Currentliab: } & \underline{20 X 2} & \underline{20 X 1} \\ \text { Cash } &\$36 &\$38 & \text { Accts payable }& \$98& \$ 64 \\ \text { Accts receivable } & 180 & 144 & \text { Wages payable } & 18 & 16 \end{array} \begin{array}{ll}&20X2\\ \text { Sales (onlycredit sales) } & \$ 1,606.0 \\ \text { Less cost of goods sold } & \underline{1,062.0} \\ \text { Gross profit } & \$ 544.0 \\ \text { Less operating expenses } & \underline{322.0} \\ \text { Operatingincome } & \$ 222.0 \\ \text { Less other expense: Interest } & \underline{9.6} \\ \text { Income before tax } & \$ 212.4 \\ \text { Less income tax expense } & \underline{\$ 5.0} \\ \text { Net income } & \$ 127.4 \end{array} \begin{array}{llllll} \text { Currentassets: } & {\underline{20 X 2}} & \underline{20 X 1} & \text { Currentliab: } & \underline{20 X 2} & \underline{20 X 1} \\ \text { Cash } &\$36 &\$38 & \text { Accts payable }& \$98& \$ 64 \\ \text { Accts receivable } & 180 & 144 & \text { Wages payable } & 18 & 16 \end{array} 32 \begin{array}{llllll} \text { Inventory } & 120 & 100 & \text { Taxes payable } & 28 & 4 \\ \text { Prep aid rent } & \underline{20} & \underline{24} & \text { Current portion } & &\\ \text { Total current assets }&\$356&\$306&\text { of long-term debt }&30&6\\ \text { Long-term as sets: }&&&\text { Total current }\\\text { Fixed ass ets } & \$ 320 & \$ 316 & \text { liabilities } & \$ 174 & \$ 90 \\ \text { Accum. deprec. } & \underline{(200) } & \underline{(180) } & \text { Long-term } & \underline{66} & \underline{92}\\&&&\text { liabilities }\\\text { Total long-term } & \$ 114 & \$ 136 & \text { Total liabilities } & \$ 240 & \$ 182\\\text { assets }\\ \end{array} The return on sales for Coors Company in 20X2 is: A) 13.8% B) 7.9% C) 33.9% D) 23.4%$ The return on sales for Coors Company in 20X2 is:

Definitions:

Interval

A range of values in statistics that describes the difference between two points, often used in the classification of scales of measurement.

Random Variable

A variable whose values depend on outcomes of a random phenomenon, with each outcome associated with a different value or set of values.

Occurrences

The instances or times that something happens or arises; the frequency of events.

Expected Value

The anticipated value or mean outcome of a variable, calculated as the sum of all possible values each multiplied by its probability of occurrence.