Question 1 of 20 next End Review

Given the following Year 12 Financial Statement data for a footwear company:
Income Statement Data

Year 12
(in 000s)

Net Revenues from Footwear Sales

$ 300,000

Operating Profit (Loss)

70,000

Net Profit (Loss)

$ 42,000

Balance Sheet Data
Cash on Hand

10,000

Total Current Assets

$ 70,000

Total Assets

270,000

Overdraft Loan Payable

5,000

1-Year Bank Loan Payable

10,000

Current Portion of Long-term Loans

17,000

Total Current Liabilities

48,000

Long-Term Bank Loans Outstanding

90,000

Shareholder Equity:

Year 11
Balance

Year 12
Change

Common Stock

10,000

0

10,000

Additional Capital

120,000

0

120,000

Retained Earnings

30,000

15,000

45,000

Total Shareholder Equity

160,000 …show more content…
5 of the Footwear Industry Report, the company’s debt-assets ratio
(where debt is defined to include both short-term and long-term debt) is
41.8%.
36.4%.
45.5%.
44.2%.
None of these.

Question 9 of 20

Assume a company's Income Statement for Year 12 is as follows:
Income Statement Data
Net Revenues from Footwear Sales
Cost of Pairs Sold

Year 12
(in 000s)
$ 320,000
200,000

Warehouse Expenses

17,000

Marketing Expenses

45,000

Administrative Expenses

8,000

Operating Profit (Loss)
Interest Income (expenses)

50,000
(10,000)

Pre-tax Profit (Loss)

40,000

Income Taxes

12,000

Net Profit (Loss)

$ 28,000

Based on the above data, which of the following statements is false?
Cost of pairs sold are 62.5% of net revenues.
Warehouse expenses are 5.3% of net revenues.
Marketing costs are 14.1% of net revenues.
Administrative expenses are 2.5% of net revenues.
Interest expenses are 3.6% of net revenues.

Question 10 of 20

As is