Question1 : Company A has $100,000 in total assets and $50,000 in total liabilities. What is the company's total equity?
Solution: Total equity = Total assets - Total liabilities
Total equity = $100,000 - $50,000
Total equity = $50,000
Question2: Company B has a net income of $10,000 and total expenses of $7,000. What is the company's gross profit?
Solution: Gross profit = Net income - Total expenses
Gross profit = $10,000 - $7,000
Gross profit = $3,000
Question3: Company C had sales revenue of $50,000 and cost of goods sold of $30,000.
What is the company's gross margin?
Solution: Gross margin = (Sales revenue - Cost of goods sold) / Sales revenue x 100% Gross margin = ($50,000 - $30,000) / $50,000 x 100%
Gross margin = 40%
Question4: Company D has a debt-to-equity ratio of 0.5. If the company's total equity is $100,000, what is the company's total debt?
Solution: Debt-to-equity ratio = Total debt / Total equity
0.5 = Total debt / $100,000
Total debt = $50,000
Question5: Company E has accounts receivable of $20,000 and a bad debt expense of $2,000. What is the company's net accounts receivable?
Solution: Net accounts receivable = Accounts receivable - Bad debt expense Net accounts receivable = $20,000 - $2,000 Net accounts receivable = $18,000
Question6: Company F has a fixed asset with a book value of $10,000 and a salvage value of $2,000. If the company sells the asset for $8,000, what is the company's gain or loss on the sale?
Solution: Gain or loss on the sale = Selling price - Book value - Disposal costs Gain or loss on the sale = $8,000 - $10,000 - 0 Gain or loss on the sale = -$2,000 (loss)
Question7: Company G has a current ratio of 2:1. If the company's current liabilities are $20,000, what is the company's current assets?
Solution: Current ratio = Current assets / Current liabilities 2:1 = Current assets / $20,000
Current assets = $40,000
Question8: Company H has a stockholders' equity of $200,000 and 20,000 outstanding shares. What is the company's book value per share?
Solution: Book value per share = Stockholders' equity / Outstanding shares Book value per share = $200,000 / 20,000 Book value per share = $10
Question9: Company I has a total revenue of $100,000 and a cost of goods sold of $60,000. What is the company's gross profit margin?
Solution: Gross profit margin = (Total revenue - Cost of goods sold) / Total revenue x 100% Gross profit margin = ($100,000 - $60,000) / $100,000 x 100% Gross profit margin = 40%
Question10 : Company J has a depreciation expense of $5,000 and accumulated depreciation of $15,000. What is the company's net book value of the asset?
Solution: Net book value
Solution: Net book value = Original cost - Accumulated depreciation If we assume the original cost of the asset was $20,000, then: Net book value = $20,000 - $15,000 Net book value = $5,000
I hope these numerical questions and solutions were helpful for your financial accounting studies!