1.Assume Mario Company uses LIFO in an environment of increasing inventory cost. Which of the following is true?

a)LIFO will result in higher net income than FIFO.

b)LIFO will result in a higher inventory balance than FIFO

c)LIFO will result in a lower cost of goods sold amount than FIFO.

d)LIFO will result in a lower gross profit than FIFO

2.According to the SEC's article, How to Read a 10-K all of the following are true except:

a)The SEC requires 10-K's to follow a set order of topics

b)In some cases, a company's 10-K and annual report are the same document.

c)If a user is interested in learning information about a company's competition, they can often refer to Item 1 - "Business"

d)The audited financial statements are found in Item 7

3.Assume Roger Inc. has the following information for the current year:

Dividends paid: $5,600

Cash flow from operating activities $112,000

Capital expenditures$37,000

Which of the following statements is true

a)$154,000 is the total free cash flow for Roger Inc.

b)Roger Inc has strong liquidity since the company has positive cash flow from operating activities.

c)$42,600 is the total free cash flow for Roger Inc.

d)69,400 represents cash available to purchases new assets to expand beyond current operations, pay off debts or increase dividends