1) A firm's total equity is $10 million and total liabilities is $5 million. During the year, its sales equaled to $75 million. Based on the given information, the total assets turnover ratio of the firm is:

A) 5 times

B) 15

C) 13

D) 10.5

E) 7.5

2) Which of the following changes is considered a source of cash when preparing a statement of cash flow?

a. A decrease in inventories b. A decrease in accounts payable c. A decrease in accrued wages d. An increase in property, plant, and equipment e. An increase in accounts receivable

3) Amber Devices Ltd. has total assets worth $900 million and total liabilities worth $475 million at the end of December 31. What is the amount of money received by the stockholders, if Amber liquidates all of its assets for $850 and pays off all of its outstanding debt at book value?

a. $850 million b. $375 million c. $1,325 million d. $475 million e. $425 million

4) The funds provided by common stockholders that consist of common stock, paid-in capital, and retained earnings are referred to as the firm's:

a. market value. b. cash equivalents. c. net worth. d. accruals. e. net cash flows.