question 145
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 #18) Refer to the Devlin Company example.Devlin Company's times interest earned for the year ended May 31, Year 7, was
Definitions:
Implicit
Something that is understood or implied without being directly stated or explicitly mentioned.
Explicit
Information or material that is clearly and directly expressed or demonstrated, leaving no room for confusion or doubt.
Automatic Processing
The unconscious encoding of incidental or well-practiced information, such as space, time, frequency, and the meaning of words.
Encoding Failure
A situation where information fails to be stored into long-term memory, leading to the inability to recall it later.