1) HUD, Co. had a beginning retained earnings of $31,775. For the year, the company had net income of $8,290 and paid dividends of $3,500. The company also issued $5,900 in new stock during the year. What is the ending retained earnings balance?

A $30,665

B $36,565

C $42,465

D $37,675

E $35,275

2) A firm has sales of $1,210, net income of $225, net fixed assets of $542, and current assets of $298. The firm has $100 in inventory. What is the common-size balance sheet value of inventory?

A 33.56%

B 18.45%

C 44.44%

D 8.26%

E 11.90%