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
Distinguish between normal, inferior, complementary, and substitute goods.
Analyze the effects of government policies on market prices and quantities.
Identify the impact of consumer preferences and seasonal changes on the demand for products.
Evaluate the effects of income changes on the demand for goods.
Definitions:
Cognitive Sociology
An area of sociology that focuses on the social construction of reality, exploring how individual cognition and societal phenomena influence each other.
Cognitive Anthropology
A branch of anthropology that studies how people perceive, think about, and understand the world around them.
Social Exchange Theory
Theory that seeks to understand social behavior by analyzing the costs and benefits of interacting with each other; it assumes that sex is a resource that women have and men want.
Economics
The study of the production, distribution, and consumption of goods and services, and the study of money.