Shown below are the financial statements for the Alpha Corporation Alp


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Shown below are the financial statements for the Alpha Corporation Alpha Corporation Income Statement for the year ended December 31, 20X2 and 20X1 (amounts in thousands) 20X2 20X1 Net Sales $130,000 $117,000 Cost of

Sale price $15.00 Regular price $30.00

Shown below are the financial statements for the Alpha Corporation

Alpha Corporation

Income Statement

for the year ended December 31, 20X2 and 20X1

(amounts in thousands)

20X2 20X1

Net Sales $130,000 $117,000

Cost of Goods Sold 64,000 56,000

Gross Profit 66,000 61,000

Operating Expenses 35,000 38,800

Operating Income 31,000 22,200

Interest Expense 8,000 7,200

Income Before Income Tax 23,000 15,000

Income Tax 8,050 4,950

Net Income $14,950 $10,050

Alpha Corporation

Balance Sheet

December 31, 20X2 and 20X1

Assets 20X2 20X1

Cash $ 8,500 $ 7,000

Accounts Receivable 7,100 6,400

Inventory 10,600 10,000

Plant Assets 39,000 34,000

Less: Accumulated Depreciation (6,000) (5,000)

Total Assets $59,200 $52,400

Liabilities & Stockholders' Equity

Accounts Payable $ 7,900 $ 6,000

Notes Payable - short term 4,400 4,000

Bonds Payable 18,000 15,000

Common Stock 9,600 9,300

Retained Earnings 19,300 18,100

Total Liabilities & Stockholders' Equity $59,200 $52,400

5. Refer to Alpha Corporation. What is the working capital for 20X2 and 20X1, respectively?

A. $13,900 and $13,400

B. $34,900 and $32,400

C. $7,700 and $7,400

D. $7,800 and $6,400

6. Refer to Alpha Corporation. What is the inventory turnover for 20X2?

A. 12.62

B. 6.21

C. 6.41

D. 6.04

7. Refer to Alpha Corporation. The percentage change in Notes Payable is:

A. 9.09%

B. 9.52%

C. 10.0%

D. 4.0%

8. Refer to Alpha Corporation. The common-size percentage of retained earnings in 20X1 is:

A. 32.6%

B. 16.7%

C. 92.5%

D. 34.5%

9. Refer to Alpha Corporation. The debt ratio in 20X1 is:

A. 51.2%

B. 47.7%

C. 40.1%

D. 19.1%

10. Refer to Alpha Corporation. What is the ROA for 20X2?

A. 26.8%

B. 52.4%

C. 55.6%

D. 25.3%

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