c. debit to Treasury Stock for $ 25,000. d. credit to Common Stock for $ 21,000.
13. The purchase of treasury stock a. increases total assets and decreases total stockholders ' equity. b. decreases total assets and increases total stockholders ' equity. c. increases total assets and increases total stockholders ' equity. d. decreases total assets and decreases total stockholders ' equity.
14. Ross Paints reported sales of $ 350,000, total assets of $ 150,000, total stock-holders ' equity of $ 60,000, current assets of $ 50,000, current liabilities of $ 30,000, and cash of $ 15,000. In a vertical analysis of the balance sheet, cash would be shown as a. 25 %. b. 10 %. c. 30 %. d. 20 %.
15. Common size analysis is one technique of a. ratio analysis. b. horizontal analysis. c. liquidity analysis. d. vertical analysis.
16. Swanson Company had inventory of $ 220,000 and $ 180,000 on December 31, 2007, and December 31, 2006, respectively. Cost of goods sold for 2007 was $ 1,520,000. Average days in inventory is approximately a. 52.9. b. 7.6. c. 48. d. 6.9.
17. If common stock is issued for an amount greater than par value, the excess should be credited to a. Cash. b. Retained Earnings. c. Paid-in Capital in Excess of Par Value. d. Legal Capital.