question 64
Multiple Choice
Mt. Prevost Machine Corp.
Income Statement (2001)
Sales Cost of goods sold Gross profit Selling and administrative expenses Operating profit Interest expense Income before tax Tax expense Net income $4,000,0003,040,000960,000430,000530,000160,000370,000148,000$222,000
Balance Sheet Cash Aceounts receivable Inventory Total current assets Fixed assets Total assets Aceounts payable Bank loan Total current liabilities Bonds payable Total liabilities Common stock (25,000 shares) Retained earnings Total liabilities & equity 2001$60,000550,000690,0001,300,0001,300,0002,600,000270,000580,000850,000900,0001,750,000250,000600,0002000$50,000500,000620,0001,170,0001,230,0002,400,000250,000500,000750,0001,000,0001,750,000250,000400,000
-Refer to the financial statements of Mt.Prevost Machine Corp.The firm's fixed asset turnover ratio for 2001 is ____.
Definitions:
Drawer-payor Bank
Refers to the bank upon which a check is drawn and is responsible for paying the check when it is presented.
Banking Day
A business day during which financial institutions are open for conducting banking transactions.
Bank Statement
A bank statement is a summary of financial transactions that occurred over a certain period of time in a bank account, provided regularly by the bank to the account holder.
Transactions
The act of conducting business or commercial activities, often involving the exchange of goods, services, or funds.