1. Mylex has current assets of $95, net fixed assets of $250, long-term debt of $45, and owners' equity of $200, what is the value of current liabilities if that is the only other item on the statement of financial position?

2. Your friend Carmen lends you $7,450. You agree to pay him back $11,426 which includes both the principle plus all the interest four years from today. What is the interest rate you are borrowing at?

3. Given the following, what is the return on equity: Cash= $1,000, common shares outstanding = 300,000; earning per share = $4.00; total assets = $5,000,000; total equity = $3,000,000, Accounts Payable =$1,000

4. Do We Inc. has sales of $46,230, costs of goods sold of $27,742.50, inventory of $675, and accounts receivable of $2,300. How many days, on average, does it take Do We Inc. to sell the inventory and collect the payment on the sale?

5. You want to retire in forty years from now, and want to have an RRSP value of $1 million. You think you can earn an average of 8.5% on your money. To meet this goal, you are trying to decide whether to deposit a lump sum today, or to wait and deposit a lump sum five years from today. How much more will you have to deposit as a lump sum if you wait for five years before making the deposit?

6. In a brief paragraph discuss the three types of financial management decisions. For each type of decision, give an example of a business transaction that would be relevant.

7. In a brief paragraph discuss the major categories of ratios and provide examples of specific ratios (1 ratio per category is fine) within each category?