1. Which of the following values would most likely interest a shareholder?

a.) Market value of equity

b.) Retained earnings

c.) Book value of equity

d.) Net working capital

2.) Which of the following could account for a firm that has a negative net income, yet has a positive amount of cash provided by operations?

a.) The cash balance increased significantly.

b.) Inventory increased significantly more than accounts payable.

c.) Accounts receivable decreased by significantly more than accounts payable.

d.) The net loss was greater than the amount of depreciation expense.