1.

Allen Lumber Company had earnings after taxes of $620,000 in the year 2015 with 360,000 shares outstanding on December 31, 2015. On January 1, 2016, the firm issued 35,000 new shares. The company took the proceeds from these new shares as well as other operating improvements and earned $806,000 earnings after taxes in 2016. Earnings per share for the year 2016 were (Round your answer to 2 decimal places.)

Multiple Choice

• $2.04

• $1.72

• $2.24

• $1.73

2.

Candy Company had sales of $230,000 and cost of goods sold of $119,600. What is the gross profit margin (ratio of gross profit to sales)?

Multiple Choice

• 38%

• 48%

• 56%

• 69%

3.

Density Farms Inc. had sales of $490,000, cost of goods sold of $170,000, selling and administrative expense of $68,000, and operating profit of $94,000. What was the value of depreciation expense?

Multiple Choice

• $156,000

• $58,000

• $158,000

• $167,000

4.

Elgin Battery Manufacturers had sales of $980,000 in 2015 and their cost of goods sold is 666,400. Selling and administrative expenses were 58,800. Depreciation expense was $9,000 and interest expense for the year was $8,000. The firm's tax rate is 27 percent. What is the dollar amount of taxes paid in 2015?

Multiple Choice

• $237,502

• $64,206

• $265,600

• $66,366

5. A firm has $3,360,000 in its common stock account and $33,600,000 in its paid in capital account. The firm issued 480,000 shares of common stock. What was the issue price (market value) if only one stock issuance has occurred?

Multiple Choice

• $70 per share

• $77 per share

• $7 per share

• $6 per share