1American Precision Industries Inc. issued a corporate bond with a face value of $10,000 at 96. Which of the following statements is true?

	a.	The stated rate of interest was higher than the market rate of interest and the bond sold for $10,200.
	b.	The stated rate of interest was higher than the market rate of interest and the bond sold for $10,960.
	c.	The stated rate of interest was lower than the market rate of interest and the bond sold for $9,600.
	d.	The stated rate of interest was lower than the market rate of interest and the bond sold for $9,040.

2 A higher fixed assets turnover ratio indicates that a company is earning more revenue for each dollar invested in fixed assets.

True

False

3 Tracie's Trike Inc. prepares its Statement of Cash Flows using the indirect method. Which accounts does the company need to analyze in calculating net cash flows from financing activities?

	a.	Notes Payable (long-term)
	b.	Inventory.
	c.	Prepaid Insurance.
	d.	Equipment.