1- A firm has $3,430,000 in its common stock account and $34,300,000 in its paid in capital account. The firm issued 490,000 shares of common stock. What was the issue price (market value) if only one stock issuance has occurred?

Multiple Choice

• $70 per share
• $7 per share
• $77 per share
• $6 per share

2- You invest $3,200 for three years at 9 percent.

a.What is the value of your investment after one year? Multiply $3,200 1.09.

b.What is the value of your investment after two years? Multiply your answer to partaby 1.09.(Round your answer to 2 decimal places.)

c.What is the value of your investment after three years? Multiply your answer to partbby 1.09. This gives your final answer.(Round your answer to 2 decimal places.)

d.Combine these steps using the formulaFV = PV (1 + i)ⁿto find the future value of $3,200 in 3 years at9 percent interest.(Round your answer to 2 decimal places.)

3- The Bradley Corporation produces a product with the following costs as of July 1, 20X1:

Material$5 per unitLabor3 per unitOverhead1 per unit

Beginning inventory at these costs on July 1 was 4,200 units. From July 1 to December 1, 20X1, Bradley Corporation produced 14,400 units. These units had a material cost of $5, labor of $6, and overhead of $4 per unit. Bradley uses LIFO inventory accounting.

a.Assuming that BradleyCorporation sold 17,800 units during the last six months of the year at $20 each, what is its gross profit?

b.What is the value of ending inventory?

4- Cyber Security Systems had sales of 3,300 units at $65 per unit last year. The marketing manager projects a 20 percent increase in unit volume sales this year with a 40 percent price increase. Returned merchandise will represent 10 percent of total sales.

What is your net dollar sales projection for this year?

5- Eli Lilly is very excited because sales for his nursery and plant company are expected to double from $720,000 to $1,440,000 next year. Eli notes that net assets (Assets Liabilities) will remain at 40 percent of sales. His firm will enjoy an 9 percent return on total sales. He will start the year with $320,000 in the bank and is bragging about the Jaguar and luxury townhouse he will buy.

a.Compute his likely cash balance or deficit for the end of the year. Start with beginning cash and subtract the asset buildup (equal to 40 percent of the sales increase) and add in profit.(Negative amount should be indicated by a minus sign.)

b.Does his optimistic outlook for his cash position appear to be correct?

• No
• Yes