Question

On December 31, Nate Inc. reported the following (in millions):

Current Assets	Current Liabilities	Long-term Liabilities	Equity
$6,484	$6,058	$7,918	$1,740

What amount did the company report as total assets?

Select one:

a. $22,200 million

b. $13,976 million

c. None of the these are correct.

d. $18,720 million

e. $9,232 million

2)

The Year 2 fiscal year-end financial statements for Walter Co. report revenues of $55,632 million, net operating profit after tax of $9,954 million, net operating assets of $58,603 million. The Year 1 fiscal year-end balance sheet reports net operating assets of $59,079 million.

Walter's Year 2 net operating profit margin is:

Select one:

a. There is not enough information to calculate the ratio.

b. 16.8%

c. 17.0%

d. 17.9%

e. 11.7%

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3)

The January 28 (fiscal year-end) financial statements of Collette Inc. reported the following information (in thousands).

	Year 2	Year 1
Cost of sales	$2,276,096	$2,294,291
Inventories, net	878,646	820,118
LIFO reserve	6,518	6,141

If Collette had used the FIFO method of inventory costing, Year 2 COGS would have been:

Select one:

a. $2,269,578 thousand

b. $2,282,614 thousand

c. None of these are correct.

d. $2,275,719 thousand

e. $2,276,473 thousand

4)

The year-end financial statements for North Railway report the following information:

Year ended December 31,
(In millions)	Year 2	Year 1
Revenues	$19,829	$21,967
Property and equipment, net	55,125	53,559
Total assets	84,122	81,703

The annual property, plant and equipment turnover is:

Select one:

a. 1.55

b. 0.41

c. None of these are correct.

d. 0.25

e. 0.36

Answer 1

1.)	The company report as total assets	$ 15,716	=6058+7918+1740
	Correct answer is option C .
2.)	Net operating profit margin is:	17.9%	=9954/55632
	Correct answer is option D .
3.)	FIFO method of inventory costing, Year 2 COGS	$ 2,276,473	=2276096+(6518-6141)
	Correct answer is option E .
4.)	The annual property, plant and equipment turnover	0.36	=19829/((55125+53559)/2)
	( Revenue / Average PPE )
	Correct answer is option E .