A stockholder is interested in the ability of a firm to

1. A stockholder is interested in the ability of a firm to (Points: 2)

2. Horizontal analysis is also called (Points: 2)

3. Vertical analysis is also known as (Points: 2)

4. Assume the following cost of goods sold data for a company:
2009 $1,500,000
2008 1,200,000
2007 900,000
If 2007 is the base year, what is the percentage increase in cost of goods sold from 2007 to 2009? (Points: 2)

5. Walker Clothing Store had a balance in the Accounts Receivable account of $780,000 at the beginning of the year and a balance of $820,000 at the end of the year. Net credit sales during the year amounted to $8,000,000. The average collection period of the receivables in terms of days was (Points: 2)

6. Waters Department Store had net credit sales of $12,000,000 and cost of goods sold of $9,000,000 for the year. The average inventory for the year amounted to $2,000,000.
The average number of days in inventory during the year was (Points: 2)

7. Which of the following is not a profitability ratio? (Points: 2)

8. Times interest earned is also called the (Points: 2)

9. The ratio that uses weighted average common shares outstanding in the denominator is the (Points: 2)

10. Each of the following is an extraordinary item except the (Points: 2)

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Emerald Health Care Inc. is owned and operated by Dr. Julie Weinstein, the sole stockholder

Emerald Health Care Inc. is owned and operated by Dr. Julie Weinstein, the sole stockholder. During March 2009, Emerald Health Care entered into the following transactions:

March 1 - Received $12,000 from Moloney Company as rent for the use of a vacant office in Emerald Health Care’s building. Moloney paid the rent six months in advance.
March 1 – Paid $5,400 for an insurance premium on a general business policy.
March 6 – Purchased supplies of $1,425 on account.
March 9 – Collected $13,500 for services provided to customers on account.
March 11 – Paid creditors $2,400 on account.
March 18 – Invested an additional $40,000 in the business in exchange for capital stock.
March 20 – Billed patients $37,200 for services provided on account.
March 25 – Received $10,000 for services provided to customers who paid cash.
March 30 – Paid expenses as follows: wages, $18,000; utilities, $5,250; rent on medical equipment, $4,000; interest, $400; and miscellaneous, $1,000.
March 30 – Paid dividends of $3,000 to stockholders (Dr. Weinstein).

Instructions:
Analyze and record the March transactions for Emerald Health Care Inc. using the integrated financial statement framework. Record each transaction by date and show the balance for each item after each transaction. The March 1, 2009 balances for the balance sheet are shown below.


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