Module 6 – Financial & Managerial Accounting for MBAs, 2nd edition by Easton, Halsey, McAnally, Hartgraves & Morse Practice Quiz
1. Procter & Gamble (PG) and Colgate-Palmolive (CL) report the following sales and accounts receivable balances ($ millions).
Compute the 2005 accounts receivable turnover for both companies. a. b. c. d. PG: PG: PG: PG: 13.56 13.11 13.76 15.31 CL: CL: CL: CL: 8.71 8.35 8.67 9.02
2. Abercrombie and Fitch (ANF) and TJ Maxx (TJX) report the following information in their respective January 2006 10-K reports.
Compute the 2006 inventory turnover for each of these two retailers. a. b. c. d. ANF: ANF: ANF: ANF: 3.25 7.67 2.98 2.57 TJX: TJX: TJX: TJX: 5.21 6.79 1.31 5.19
Financial & Managerial Accounting for MBAs, 2nd Edition
3. Intel Corporation (INTC) and Texas Instruments (TXN) report the following information.
Compute the 2005 PPE turnover for both companies. a. b. c. d. INTC: INTC: INTC: INTC: 2.27 2.17 2.50 2.36 TXN: TXN: TXN: TXN: 3.44 3.21 3.50 3.43
4. General Electric Company reports the following footnote in its 10-K report.
The company reports its inventories using the LIFO inventory costing method. Assume GE has a 35% income tax rate. As of the 2005 year-end, how much has GE saved in taxes by choosing LIFO over FIFO method for costing inventory? a. b. c. d. $6,705 million $475 million $3,610 million $244 million
Financial & Managerial Accounting for MBAs, 2nd Edition
5. The inventory footnote from the Deere & Company’s 2005 10-K follows ($ millions).
Inventories Most inventories owned by Deere & Company and its United States equipment subsidiaries are valued at cost, on the “last-in, first-out” (LIFO) basis. Remaining inventories are generally valued at the lower of cost, on the “first-in, first-out”
