question 69
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 #16) Refer to the Devlin Company example.Devlin Company's asset turnover for the year ended May 31, Year 7, was
Definitions:
Maintenance
The activities involved in keeping a system’s equipment in working order.
Quick Response
A strategy aimed at reducing lead times within the production and distribution systems to improve service levels and reduce costs.
Raw Material
Basic substances or components that are processed or transformed into finished goods through manufacturing or production.
Utilizes Capacity
Utilizes Capacity refers to the extent to which an organization or system employs its available resources, such as manpower, equipment, or space, effectively.