Exhibit 19-1
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)

question 62

Multiple Choice

Exhibit 19-1
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S) $\begin{array}{c} \text { BMC CORPORATION INCOME STATEMENT } \\ \text {FISCAL YEAR ENDING 12/31/2009 } \\ \text { (DOLLARS IN THOUSANDS') } \\\begin{array}{lr}\text { Net Sales } &\quad\quad\quad\quad\quad\quad\quad \$ 1025 \\\text { Cost of Goods Sold } & \underline {682 }\\ \text { Gross Profit Margin } & 343 \\\text { Depreciation } & 31 \\\text { Operating Expense } & 103 \\\text { Administrative Expense } & \underline {127} \\\text { Operating Profit } & 82\\\text { Interest }\\ \text {Profit Before Taxes}&\frac{27}{55} \\ \text { Taxes } \\ \text {Net Income }&\$\frac{17}{38} \\\end{array}\end{array}$ $\begin{array}{c} \text { BMC CORPORATION BALANCE SHEET } \\ \text { FISCAL YEAR ENDING 12/31/2009 } \\ \text { (DOLLARS IN THOUSANDS) } \\\begin{array}{lll}\text { ASSETS }\\\hline\text { Cash } & \$ 61 \\\text { Accounts receivables } & 286 \\\text { Inventory } & \underline { 354} \\\text { Total current assets } & 701 \\\text { Net fixed assets } & \underline { 802} \\\\\\\\\\\text { Total assets }& \$ 1503\\\end{array}\begin{array}{lll}\text { LIABILITIES }\\\hline\text { Notes payable } & \$ 223 \\\text { Accounts payable } & 152 \\\text { Accruals } & \underline { 32} \\ \text { Total current liabilities } & 407 \\\text { Long term debt } & 306 \\\text { Common stock ( } \$ 1.50 \text { par) } & 102 \\\text { Paid in surplus } & 226 \\\text { Retained earnings } & \underline { 462} \\\text { Total liabilities and } & \\\quad \text { Stockholders' equity } & \$ 1503\end{array}\end{array}$
-Refer to Exhibit 19-1. What was the financial leverage multiplier used in the BMC system?

• A) 2.058
• B) 2.289
• C) 3.014
• D) 1.903
• E) 0.904

Analyze and correct errors in accounting entries, including those affecting supplies and accounts receivable/payable.

Record business transactions in a two-column journal format, emphasizing the debit and credit system.

Understand the impact of business transactions on the accounting equation.

Classify accounts by their normal balances and activity (debit or credit) during recording business transactions.

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Definitions:

Interpersonal Intelligence

Howard Gardner's theory component that describes an individual's ability to understand and interact effectively with others.

Temperaments

Inherent personality traits that influence how individuals react to the environment and manage their emotions from a very early age.

Culturally Defined

Characteristics, norms, or behaviors that are recognized and accepted within specific cultural or societal contexts.

Subtheory

A division of a theory that focuses on a particular subset of assumptions and their implications.