1. Candy Company had sales of $230,000 and cost of goods sold of $101,200. What is the gross profit margin (ratio of gross profit to sales)?

2. Density Farms, Inc. had sales of $500,000, cost of goods sold of $180,000, selling and administrative expense of $74,000, and operating profit of $93,000. What was the value of depreciation expense?

3. Elgin Battery Manufacturers had sales of $950,000 in 2009 and their cost of goods sold represented 69 percent of sales. Selling and administrative expenses were 7 percent of sales. Depreciation expense was $11,000 and interest expense for the year was $9,000. The firm's tax rate is 26 percent. What is the dollar amount of taxes paid?

4. A-Rod Fishing Supplies had sales of $2,440,000 and cost of goods sold of $1,750,000. Selling and administrative expenses represented 8 percent of sales. Depreciation was 4 percent of the total assets of $4,870,000. What was the firms operating profit?

5. ABC Co. has an average collection period of 60 days. Total credit sales for the year were $4,100,000. What is the balance in accounts receivable at year-end? (Use 360 days in a year. Do not round intermediate calculations. Round your answer to the nearest dollar amount.)

6. XYZ Co. has forecasted June sales of 900 units and July sales of 1,700 units. The company maintains ending inventory equal to 125% of next month's sales. June beginning inventory reflects this policy. What is June's required production?

7. A firm has beginning inventory of 300 units at a cost of $6 each. Production during the period was 660 units at $13 each. If sales were 760 units, what is the cost of goods sold (assume FIFO)?

8. The preferred stock of Denver Savings and Loan pays an annual dividend of $6.80. It has a required rate of return of 8 percent. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Compute the price of the preferred stock.