b)credit to Interest Payable for $1, 850 c) debit to Premium on Bonds Payable for $150 d) debit to Bond Interest Expense of $1, 850 9. Here is inf ormation taken from the accounting books of Nikey Company: net sales were $360,000, the cost of goods sold was $180,000, operating expenses were $120,000, the ending balance of the Accounts Receivable account was $20,000. Now assume that the merchandise turnover ratio was 12.75. Then Nikey' s profit margin was a)16.67% b)20.0% c)40.0% d)333% 10. Which line is not correct? a)Ratio: Current ratio; Type of measurement: Short-term liquidity b)Ratio: Return on total assets; Type of measurement: Operating efficiency c)Ratio: Dividend yield; Type of measurement: Capital structure d)Ratio: Equity ratio; Type of measurement: Long-term risk and capital structure Part IV: Problems(2*20= 40 points) 1. The following is the information obtained from the financial reporting of Mille Company 2001 2000 1999 1998 Total liabilities s100,000$150000s122,000$80,000 Shareholders' equity80,000150,000130,000100,000 Net income 20,00023,00024,000 15,000 Assume that 50,000 Mille common shares have been outstanding since 1998 Requirement: Calculate the eamings per share in 2001 for Mille Company 2. From the accounting books of Monte Cristo Co., you can find out the following The days sales in inventory is 73 The cost of goods sold is $720,000 The net sales are $1, 020, 000 The beginning inventory was $82,000 Requirement: What is the ending inventory?b) credit to Interest Payable for $1,850 c) debit to Premium on Bonds Payable for $150 d) debit to Bond Interest Expense of $1,850 9. Here is information taken from the accounting books of Nikey Company: net sales were $360,000, the cost of goods sold was $180,000, operating expenses were $120,000, the ending balance of the Accounts Receivable account was $20,000. Now assume that the merchandise turnover ratio was 12.75. Then Nikey’s profit margin was: a) 16.67% b) 20.0% c) 40.0% d) 33.3% 10. Which line is NOT correct? a) Ratio: Current ratio; Type of measurement: Short-term liquidity b) Ratio: Return on total assets; Type of measurement: Operating efficiency c) Ratio: Dividend yield; Type of measurement: Capital structure d) Ratio: Equity ratio; Type of measurement: Long-term risk and capital structure Part IV: Problems (2*20 = 40 points) 1. The following is the information obtained from the financial reporting of Mille Company: 2001 2000 1999 1998 Total liabilities $100,000 $150,000 $122,000 $80,000 Shareholders' equity 80,000 150,000 130,000 100,000 Net income 20,000 23,000 24,000 15,000 Assume that 50,000 Mille common shares have been outstanding since 1998. Requirement: Calculate the earnings per share in 2001 for Mille Company. 2. From the accounting books of Monte Cristo Co., you can find out the following information: The days' sales in inventory is 73. The cost of goods sold is $720,000. The net sales are $1,020,000. The beginning inventory was $82,000. Requirement: What is the ending inventory?