Saturday, October 10, 2020

The balance sheet of Hidden Valley Farms reports total assets of $450,000 and $550,000 at the beginning and end of the year,

The balance sheet of Hidden Valley Farms reports total assets of $450,000 and $550,000 at the beginning and end of the year, respectively. The return on assets for the year is 10%.
What is Hidden Valley's net income for the year?



A) $5,000,000.

B) $55,000.

C) $5,500,000.

D) $50,000.


Answer: D


The balance sheet of Hidden Valley Farms reports total assets of $450,000 and $550,000 at the beginning and end of the year, respectively. Net income and sales for the year are $100,000 and $800,000, respectively.
What is Hidden Valley's asset turnover?



A) 1.6 times.

B) 1.8 times.

C) 1.5 times.

D) 0.2 times.


Answer: A


Recognition of impairment for long-term assets is required if book value exceeds:



A) Original cost.

B) Fair value.

C) Future cash flows.

D) Accumulated depreciation.


Answer: C

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