1.

The Charleston Company purchases a machine on 1/1/18: The book value at 12/31/20 will be:

Select one:

a. $16,250

b. $19,750

c. $17,000

d. $13,750

e. $22,500

2.

Given the following data: Net Income is:

Select one:

a. Overstated $24

b. Understated $6

c. Overstated $16

d. Understated $15

e. Understated $14

3.

The Bozeman Company had current assets of $500 and current liabilities of $400 prior to the following transactions: 1. Collection of an account receivable, $100 2. Payment of an account payable, $80 The combined effect of these two transactions will cause what effect on Working Capital and the Working Capital Ratio, respectively?

Select one:

a. No Effect, Decrease

b. No Effect, Increase

c. No Effect, No Effect

d. Decrease, Decrease

e. Decrease, Increase

4.

If a retail store has a current ratio of 2.2 to 1 and current assets of $330,000, the amount of working capital is:

Select one:

a. $110,000

b. $180,000

c. $220,000

d. $108,000

e. $150,000

Cost Salvage Value Estimated Life Depreciation $28,000 $6,000 8 years Straight-Line Overstated Understated Sales Returns Ending Inventory Freight Out $4 $15