2018	2017
Accounts receivable	$40,000	$36,000
Inventory	28,000	35,000
Net sales	190,000	186,000
Cost of goods sold	114,000	108,000
Total assets	425,000	405,000
Total stockholders equity	240,000	225,000
Net income	32,500	28,000

101) The 2018 debt to equity ratio is (rounded to one decimal place):

A) 80.0%. B) 40.0%. C) 77.1%. D) 60.0%.

Sales revenue	$440,000
Advertising expense	60,000
Interest expense	10,000
Salaries expense	55,000
Utilities expense	25,000
Income tax expense	45,000
Cost of goods sold	180,000

102)

What is operating income?

A) $120,000. B) $65,000. C) $110,000. D) $260,000.

103. In a perpetual inventory system, the entry at the time of a sale to record the cost of the inventory sold includes a:
     1. Not recorded at the time of the sale. B) Debit to Cost of Goods Sold.

C) Credit to Cost of Goods Sold. D) Debit to Accounts Receivable.

104. Goodwill is:
     1. Only recorded by the seller of a business.
     2. Recorded when created internally through advertising expense.
     3. Amortized over the greater of its estimated life or forty years.
     4. The value of a business as a whole, over and above the value of its net identifiable assets.

105. ABC purchased equipment for $60,000 on January 1, 2018. The equipment is expected to have a five-year life, with a residual value of $5,000 at the end of five years.

Using the straight-line method, the book value at December 31, 2018 would be:

A) $44,000. B) $55,000. C) $49,000. D) $60,000.