18 . Paid-in Capital in Excess of Par Value a . is credited when no-par stock does not have a stated value . b . is reported as part of paid-in capital on the balance sheet . c . represents the amount of legal capital . d . normally has a debit balance .
19 . The financial statements of the Bolton Manufacturing Company reports net sales of $ 500,000 and accounts receivable of $ 50,000 and $ 30,000 at the beginning of the year and end of year , respectively . What is the receivables turnover ratio for Bolton ? a . 7 times b . 10 times c . 16.7 times d . 12.5 times
20 . The following credit sales are budgeted by Rodriguez Company : February 50,000 March 70,000 April 60,000 The company ’ s past experience indicates that 80 % of the accounts receivable are collected in the month of sale , 20 % in the month following the sale . The anticipated cash inflow for the month of April is a . $ 48,000 . b . $ 56,000 . c . $ 60,000 . d . $ 62,000 .
PART II — TRUE / FALSE 3 points each ( 39 points )
1 . Under an operating lease , both the leased asset and the liability are shown on the balance sheet . False
2 . Certain types of leases , called capital leases , allow the lessee to account for the transaction as a rental . False
3 . The issuance of common stock affects both paid-in capital and retained earnings . False