1) Cleveland Cove Enterprises is evaluating the purchase of an elaborate hydraulic lift system for all of its locations to use for the boats brought in for repair. The company has narrowed their choices down to two - B14 Model and the F54 Model. Financial data about the two choices follows.

	B14 Model	F54 Model
Investment	$350,000	$220,000
Useful life (years)	10	10
Estimated annual net cash inflows for useful life	$40,000	$35,000
Residual value	$10,000	$17,000
Depreciation method	Straightminusline	Straightminusline
Required rate of return	14%	12%

What is the total present value of future cash inflows and residual value from the F54 Model? a) $168,000 B) $203,224 C) ($16,776) D) $272,00

2) A company reported beginning plant assets, net of depreciation, of $734,550; and, an ending amount of $658,000. Depreciation expense of $50,400 and a loss on the sale of equipment of $5,600 were reported on the income statement. The company acquired $215,800 of plant assets during the year. How much will be reported as cash received from the sale of equipment in the investing activities section of the statement of cash flows? A) The cash received upon the sale of the equipment was $247,550. B) The cash received upon the sale of the equipment was $241,950. C) The cash received upon the sale of the equipment was $286,750. D) The cash received upon the sale of the equipment was $236,350.

3) The Amos Corporation reported the following income statement and balance sheet amounts and additional information for the end of the current year.

	End of current year	End of prior year
Net sales revenue (all credit)	$1,220,000
Cost of goods sold	$725,000
Gross profit	$495,000
Selling/general expenses	$280,000
Interest expense	$46,000
Net Income	$169,000
Current assets	$113,000	$82,000
Longminusterm assets	$512,000	$440,000
Total assets	$625,000	$522,000
Current liabilities	$57,000	$52,000
Longminusterm liabilities	$275,000	$245,000
Common stockholders' equity	$293,000	$225,000
Total liabilities and stockholders' equity	$625,000	$522,000

Inventory and prepaid expenses account for $30,000 of the current year's current assets.

Average inventory for the current year is $36,250.

Average net accounts receivable for the current year is $45,000.

There are 35,000 shares of common stock outstanding.

Total dividends paid during the current year were $17,000.

The market price per share of common stock is $20.

What is the time interest earned ratio for the current year ? A) 4.67 times B) 1.90 times C) 1.00 times D) 0.21 times