question 61
Multiple Choice
Devlin Company Devlin Company
Statement of Financial Position
as of May 31
(in thousands)
Assets Current assets Cash Trading securities Accounts receivable (net) Inventories Prepaid expenses Total current assets Investments, at equity Property, plant, and equipment (net) Intangible assets (net) Total assets Liabilities and shareholders’ equity Current liabilities Notes payable Accounts payable Accrued expenses Income taxes pavable Total current liabilities Long-term debt Deferred taxes Total liabilities Shareholders’ equity Preferred stock, 6%,$100 par value, cumulative Common stock, $10 par value Additional paid-in capital-common stock Retained earmings Total shareholders’ equity Total liabilities and shareholders’ equity year 7$4530689022$2553837580$748$3570515125353$16315022511496$585$748year 6$3820488030$2163040045$691$184241680352$117150195100129$574$691
Devlin Company
Income Statement
For the year ended May 31
(in thousands)
Net sales Costs and expenses Cost of goods sold Selling, general, and administrative Interest expense Income before taxes Income taxes Net income Year 7$480330528$9036$54 Year 6$460315519$8534$51 (CMA adapted, Jun 97 #13) Refer to the Devlin Company example.Devlin Company's acid-test ratio at May 31, Year 7, was
Definitions:
Employee Referrals
A hiring strategy where existing employees recommend potential candidates for open positions within their organization.
Simplified Employee Pension Plan
A retirement savings plan that allows employers to make direct contributions to individual retirement accounts set up for their employees.
The Self-Employed
Individuals who work for themselves, not as employees of someone else, and often run their own businesses.
Lower Level Management
A tier of management that focuses on the day-to-day operations and tasks of a company, directly supervising non-management employees.