In analyzing the income statement of Bob Company

1. In analyzing the income statement of Bob Company, cost of goods sold decreased from 2013 to 2014 by8.2%. The cost of goods sold was $19,000 in 2014. What was the cost of goods sold to nearest dollar in2013?A. $20,697.17B. $20,796.71C. $20,769.71D. $20,679.712. When are annuity due payments made?A. MonthlyB. At the end of the period C. At the beginning of the periodD. Yearly3. Joe Jay purchased a new colonial home for $260,000, putting down 20%. He decided to use Loyal Bankfor his mortgage. They were offering a 6 1/2% 25-year mortgage. The principal after the firstpayment had a balance outstanding of A. $207,270.95.B. $207,270.59.C. $207,720.95.D. $207,720.59.4. What is the depreciation expense second year (straight-line method) using the following information?Cost of equipment: $14,000 Residual value: $500 Life: 4 years A. $3,275 B. $14,500 C. $3,375 D. $13,5005. -years depreciation, if an asset is purchased on February 8, how many months’ depreciation will be taken year?A. 10B. 9C. 11D. 126. An annuity due compared with an ordinary annuity results inA. a lower value.B. a value three times the annuity due.C. the same value.D. a higher value.7. The total debt to total assets of Logan Company was .71. The total of Logan’s assets was $270,000.What is the amount of total debt?A. $461,700B. $191,700C. $146,700D. $119,7008. The asset turnover of Ryan Company is 7.2. The total assets of Ryan are $88,000. What are Ryan’s netsales?A. $633,600B. $633,000C. $6,336D. $63,3609. What do points represent?A. An additional cost of receiving the mortgageB. Monthly paymentsC. 3% up-front paymentD. 2% of the amount of the loan 10. A new truck costing $50,000 with a residual value of $4,000 has an estimated useful life of five years.Using the declining-balance method at twice the straight-line rate, the depreciation expense in year 2 isA. $18,000.B. $12,000.C. $7,200.D. $20,000.11. When are ordinary annuity payments made?A. At the beginning of the periodB. MonthlyC. At the end of the periodD. Yearly12. Lance Rice has decided to invest $1,200 quarterly years in an ordinary annuity at 4%. Usingthe tables in the Business Math Handbook that accompanies the course textbook, determine the total cashvalue of the annuity at end of year 8.A. $46,246.80B. $44,992.92C. $46,642.80D. $44,292.9213. Nancy Billows promised to pay her son $600 quarterly years. Suppose Nancy plans to investher money at 6% in an ordinary annuity. Using the tables in the Business Math Handbook thataccompanies the course textbook, how much does she need to invest today?A. $8,478.27B. $10,759.38C. $10,759.83D. $8,478.7214. Most companies calculate the finance charge on credit card accounts as a percentage of theA. weekly balance.B. average daily balance.C. daily balance.D. average weekly balance.15. How is cost recovery using MACRS calculated?A. Rate divided by costB. Rate + costC. Rate – costD. Rate × cost16. Bram Johnson invests $500 at the end of each quarter years. The account earns 12% interest annually. What is the value of the account at the end of 10 years?A. $37,700.60B. $3,700.00C. $37,000.00D. $37,700.0017. Craig Hammer purchased a new condominium for $225,000. The bank required a $30,000 down payment. Using the tables in the Business Math Handbook that accompanies the course textbook and assuming a rate of 8% on a 25-year mortgage, determine Craig’s monthly payment.A. $1,505.04B. $1,505.40C. $1,413.30D. $1,431.3018. Scott deposits $5,000 at the end of each year into an account years. Assuming 6% interest annually, what is the value of his account in five years?A. $67,060B. $21,873C. $28,185.50D. $30,10019. Darlene Ramirez bought a home for $140,000. She put 20% down with a mortgage rate of 7.5% . What are her yearly payments?A. $9,932.16B. $9,329.61C. $1,776.00D. $12,415.2020. Amanda Chin purchased a home for $296,000; she put 20% down with a mortgage rate of 6% . What is Amanda’s monthly payment?A. $1,420.80B. $1,240.80C. $1,402D. $1,77621. Which method does not deduct residual value in calculating depreciation expense?A. Straight-line methodB. None of theseEnd of examC. Declining-balance methodD. Units-of-production method22. Stu Reese has a $150,000 7 1?2% mortgage. His monthly payment is $1,010.10. His first payment willreduce the principal to an outstanding balance ofA. $149,729.40.B. $149,927.40.C. $72.60.D. $149,910.40.23. What does a ratio of 2:2:1 mean?A. 2/4, 2/5, 1/4B. 2/5, 2/4, 1/5C. 2/4, 2/4, 1/4D. 2/5, 2/5, 1/524. Compute the current ratio following:Total current assets = $12,000 Current liabilities = $10,000A. 1.5B. .7C. 1.2D. 1.725. Bill Moore took out an $80,000 mortgage on a ski chalet. The bank charged 4 points at closing. Thepoints in dollars cost BillA. $3,200.B. $1,600.C. $800.D. $2,400.