The Financial Statements of Black Barn Company Are Given Below

question 27

Multiple Choice

The financial statements of Black Barn Company are given below. $\begin{array}{c} \text { Black Barn Company } \\\text { Income Statement (2009) }\\\begin{array}{lrr} \hline \text { Sales } & \$ 8,000,000 \\\text { Cost of goods sold } & \underline {5,260,000} \\\text { Gross profit } & 2,740,000 \\\text { Selling \& administrative expenses } & \underline {1,500,000} \\\text { Operating profit } & 1,240,000 \\\text { Interest expense } & \underline {140,000 }\\\text { Income before tax } & 1,100,000 \\\text { Tax expense } & \underline {440,000} \\ \text { Net income } & \underline {\$ 660,000} \\\end{array} \end{array}$ $\begin{array}{c}\begin{array}{lll} \text { Balance Sheet } &2009\\\\ \text { Cash } &\$ 200,000 \\ \text { Accounts receivable } & 1,200,000 \\ \text { Inventory } & \underline {1,840,000} \\ \text {Total current assets } &\$ 3,240,000 \\ \text {Fixed assets } & \underline {3,200,000} \\ \text { Total assets } & \underline {\$ 6,440,000} \\\\ \text { Accounts Payable } &\$ 800,000 \\ \text { Bank loan } & \underline {600,000} \\ \text { Total current liabilities } & \$ 1,400,000 \\ \text {Bond payable } & \underline { 900,000} \\ \text { Total liabilities } & \underline {\$ 2,300,000 }\\ \text { Common stock ( 130,000 shares) } & \$ 300,000 \\ \text {Retained earnings } & \underline {3,840,000}\\ \text { Total liabilities \& equity } & \underline {\$ 6,440,000} \\\end{array}\begin{array}{lll}2008\\\\\$ 50,000 \\ 950,000 \\ \underline { 1,500,000 }\\ \$ 2,500,000 \\ \underline { 3,000,000} \\ \underline { \$ 5,500,000 }\\\\\$ 720,000 \\ \underline { 100,000} \\ \$ 820,000 \\ \underline {1,000,000} \\ \underline {\$ 1,820,000 }\\\$ 300,000\\ \underline { 3,380,000} \\ \underline { \$ 5,500,000} \\\end{array}\end{array}$ Note: The common shares are trading in the stock market for $40 each. Refer to the financial statements of Black Barn Company. The firm's fixed asset turnover ratio for 2009 is

• A) 2.04.
• B) 2.58.
• C) 2.97.
• D) 1.58.
• E) None of the options are correct.

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The effect that various forms of media have on the attitudes, behaviors, and values of individuals and society.

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A medical condition characterized by excessive body fat accumulated to the extent that it may have a negative effect on health.

Overweight

Having more body fat than is optimally healthy, often defined by a Body Mass Index (BMI) over 25 but below 30.

Self-Esteem

An individual's subjective evaluation of their own worth or personal value.