1. The management of Leitheiser Corporation is considering a project that would require an initial investment of $43,000. No other cash outflows would be required. The present value of the cash inflows would be $57,080. The profitability index of the project is closest to (Ignore income taxes.): Multiple Choice 1.33 0.67 0.33 0.25

2. Bustillo Inc. is working on its cash budget for March. The budgeted beginning cash balance is $40,000. Budgeted cash receipts total $121,000 and budgeted cash disbursements total $115,000. The desired ending cash balance is $61,500. To attain its desired ending cash balance for March, the company needs to borrow: Multiple Choice $107,500 $15,500 $0 $61,500

3. The Puyer Corporation makes and sells only one product called a Deb. The company is in the process of preparing its Selling and Administrative Expense Budget for next year. The following budget data are available: Monthly Fixed Cost Variable Cost Per Deb Sold Sales commissions $ 0.99 Shipping $ 1.49 Advertising $ 50,900 $ 0.29 Executive salaries $ 60,900 Depreciation on office equipment $ 20,900 Other $ 40,900 ________________________________________ All of these expenses (except depreciation) are paid in cash in the month they are incurred. If the company has budgeted to sell 15,900 Debs in February, then the total budgeted fixed selling and administrative expenses for February is: Multiple Choice $122,700 $132,700 $152,700 $173,600