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1. Assume the following sales data for a company: Year 2 $562,500 Year 1 450,000 What is the percentage increase in sales from Year 1

1. Assume the following sales data for a company:

Year 2 $562,500
Year 1 450,000

What is the percentage increase in sales from Year 1 to Year 2 (to the nearest percent)?

a.80%

b.25%

c.125%

d.20%

2 Based on the following data, what is the amount of quick assets?

Accounts payable $30,000
Accounts receivable 45,000
Accrued liabilities 7,000
Cash 20,000
Intangible assets 40,000
Inventory 72,000
Long-term investments 100,000
Long-term liabilities 75,000
Marketable securities 36,000
Notes payable (short-term) 20,000
Property, plant, and equipment 625,000
Prepaid expenses 2,000

a.$65,000

b.$101,000

c.$175,000

d.$173,000

3 Duke Company has income before income tax of $100,000, interest expense of $20,000, and total stockholders' equity of $100,000. Duke's times interest earned ratio is

a.6.

b.0.2.

c.1.2.

d.4.

4 The balance sheets at the end of each of the first two years of operations indicate the following:

Year 2 Year 1
Total current assets $600,000 $560,000
Total investments 60,000 40,000
Total property, plant, and equipment 900,000 700,000
Total current liabilities 150,000 80,000
Total long-term liabilities 350,000 250,000
Preferred 9% stock, $100 par 100,000 100,000
Common stock, $10 par 600,000 600,000
Paid-in capital in excess of parcommon stock 60,000 60,000
Retained earnings 325,000 210,000

5 If net income is $125,000 and preferred dividends are $9,000 for Year 2, what is the earnings per share on common stock for Year 2? (Round to two decimal places.)

a.$0.19

b.$1.75

c.$2.08

d.$1.93

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