1) Assume the following sales data for a company:

Current year $892,957

Preceding year 646,502

What is the percentage increase in sales from the preceding year to the current year (rounded to one decimal place)?

a.38.1%

b.27.6%

c.10.5%

d.65.7%

2) A company with $70,000 in current assets and $50,000 in current liabilities pays a $1,000 current liability. As a result of this transaction, the current ratio and working capital will

a.increase and remain the same, respectively

b.both decrease

c.remain the same and decrease, respectively

d.both increase

3) Balance sheet and income statement data indicate the following:

Bonds payable, 10% (due in two years) $829,000

Preferred 5% stock, $100 par (no change during year) 300,000

Common stock, $50 par (no change during year) 2,058,000

Income before income tax for year 305,000

Income tax for year 73,000

Common dividends paid 102,900

Preferred dividends paid 15,000

Based on the data presented, what is the times interest earned ratio (rounded to one decimal place)?

a.4.7

b.6.4

c.3.7

d.2.7

4) The following items are reported on a company's balance sheet:

Cash $223,000

Marketable securities 96,600

Accounts receivable 267,500

Inventory 209,900

Accounts payable 311,000

Round your answers to two decimal places.

a.Determine the current ratio.

b.Determine the quick ratio.

5) A company reports the following:

Income before income tax $345,800

Interest expense 66,500

Determine the times interest earned. Round your answer to one decimal place.

6) A company reports the following:

Net income $808,980

Preferred dividends $59,920

Shares of common stock outstanding 43,000

Market price per share of common stock $50.52

Calculate the company's earnings per share on common stock. Round your answer to the nearest cent.