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The retained earnings account is a part of which of the following accounts? Select one: a. Owners' equity b. Liabilities c. Capital stock d. Long-term assets If the payout ratio is .40 and dividends are 40 , then net income is Select one: a. 80 b. 100 C. 120 d. 160 \begin{tabular}{|l|} \hline Question 3 \\ Not yet \\ answered \\ Points out of \\ 1.00 \\ P Flag \\ question \\ \hline \end{tabular} If the profit margin ratio is .05 and net sales are 100 , then net income is Select one: a. 5 b. 6 c. 7 d. 8 Question 4 The difference between sales and the cost of goods sold is reflected by the Select one: a. Profit margin ratio b. Gross margin ratio c. Asset turnover ratio d. None of the above Inventory turnover involves two elements Select one: a. Cost of goods sold and average inventory b. Cost of goods sold and average accounts receivable c. Accounts receivable and net sales d. Accounts receivable and average inventory Assets are 100 and expected to grow by 31%. Liabilities and owners equity are 100 and expected to grow by 35%. The plug for the first pro forma year is a Select one: a. Liability plug b. Cash plug E Neither Anor B Projected sales growth assumes Select one: a. Adequate asset base b. Decrease in property, plant and equipment c. Decrease in accounts receivable d. Decrease in inventory e. None of the above. Charles LLC has base sales of 100 and depreciation expense is 20% of sales. Assuming a 20% increase in sales, depreciation expense for the first pro forma year is Select one: a. 22 b. 24 C. 26 d. 28 Smith LLC as base sales of 100 and cost of goods sold is 50% of sales. Assuming a 15% increase in sales, cost of goods sold for the first pro forma year is Select one: a. 57.50 b. 65.50 c. 75.50 d. None of the above Assets are 100 and expected to grow by 25%. Liabilities and owners' equity are 100 and expected to grow by 20%. The plug for the first pro forma year is a Select one: a. Liability plug b. Cash plug c. Neither A nor B