The Following Financial Information Is from Cook Company: What Is

question 53

Multiple Choice

The following financial information is from Cook Company: What is the amount of long-term assets assuming the accounts above reflect normal activity?
$$\begin{array} { | l | r | } \hline \text { Accounts Payable } & \$ 55,000 \\\hline \text { Land } & \$ 90,000 \\\hline \text { Inventory } & \$ 10,500 \\\hline \text { Accounts Receivable } & \$ 7,500 \\\hline \text { Equipment } & \$ 8,000 \\\hline \text { Deferred Revenue } & \$ 58,500 \\\hline \text { Short-term Investments } & \$ 20,000 \\\hline \text { Notes Receivable (due in 8 months) } & \$ 45,500 \\\hline \text { Interest P ayable } & \$ 2,000 \\\hline \text { Patents } & \$ 75,000 \\\hline\end{array}$$

• A)$342,500.
• B)$173,000.
• C)$273,500.

Understand the concept and calculation of the break-even point in units and dollar sales.

Understand and calculate the degree of operating leverage for given sales data.

Calculate and interpret the contribution margin and the contribution margin ratio.

Analyze the relationship between fixed, variable, and total costs in determining profitability.

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