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  3. 1 the following information in millions comes from a...

Question: 1 the following information in millions comes from a...

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1/ The following information ($ in millions) comes from a recent annual report of Amazon.com, Inc.:

Net sales $ 10,770
Total assets 4,367
End of year balance in cash 1,023
Total stockholders' equity 396
Gross profit (Sales – Cost of Sales) 2,583
Net increase in cash for the year 15
Operating expenses 2,055
Net operating cash flow 784
Other income (expense), net (24)

Compute Amazon's total liabilities at the end of the year.

Multiple Choice

  • $ 4,367

  • $ 4,638

  • $ 3,971

  • $ 2,203

2/ On November 1, 2018, Tim's Toys borrows $30,300,000 at 8% to finance the holiday sales season. The note is for a six-month term and both principal and interest are payable at maturity. What is the balance of interest payable for the loan as of December 31, 2018?

Multiple Choice

  • $202,000.

  • $101,000.

  • $1,212,000.

  • $404,000.

3/ Janson Corporation Co.'s trial balance included the following account balances at December 31, 2018:

Accounts receivable $13,200
Inventories 40,000
Patent 12,200
Investments 30,500
Prepaid insurance 7,400
Note receivable, due 2021 50,900


Investments consist of treasury bills that were purchased in November, 2018 and mature in January, 2019. Prepaid insurance is for two years. What amount should be included in the current asset section of Janson’s December 31, 2018, balance sheet?

Multiple Choice

  • $ 138,300.

  • $ 91,100.

  • $ 87,400.

  • $ 56,900.

4/ The following partial balance sheet ($ in thousands) for Paisano Seafood Inc. is shown below.

Assets Liabilities and Equity
Current assets: Current liabilities:
Cash $ 66 Accounts payable $ 226
Accounts receivable (net) 184 Other liabilities 77
Notes receivable 57 Total current liabilities 303
Inventories 213 Long-term liabilities 95
Prepaid expenses 27 Total liabilities 398
Total current assets 547 Shareholders' equity:
Plant assets (net) 269 Capital stock 138
Retained earnings 280
Total shareholders' equity 418
Total assets $ 816 Total liabilities and equity $ 816


The current ratio is (Round your answer to two decimal places.):

Multiple Choice

  • 0.67.

  • 2.03.

  • 1.81.

  • 1.37.

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