21. Using the following information, what is the amount of income from operations?

?

Purchases	$32,000	?	Selling expense	$ 960
Merchandise inventory, September 1	5,700	?	Merchandise inventory, September 30	6,370
Administrative expense	910	?	Sales	63,000
Rent revenue	1,200	?	Interest expense	1,040

?

	a.	$31,670
	b.	$29,960
	c.	$28,760
	d.	$29,800

59. Assuming that the company uses the perpetual inventory system, determine the gross profit for the sale of May 23 using the FIFO inventory cost method.

Date	Blankets	Units	Cost
May 3	Purchase	5	$20
10	Sale	3
17	Purchase	10	$24
20	Sale	6
23	Sale	3
30	Purchase	10	$30

	a.	$108
	b.	$120
	c.	$72
	d.	$180

The balance sheets at the end of each of the first two years of operations indicate the following:

?

	Year 2	Year 1
Total current assets	$600,000	$560,000
Total investments	60,000	40,000
Total property, plant, and equipment	900,000	700,000
Total current liabilities	125,000	65,000
Total long-term liabilities	350,000	250,000
Preferred 9% stock, $100 par	100,000	100,000
Common stock, $10 par	600,000	600,000
Paid-in capital in excess of parCommon stock	75,000	75,000
Retained earnings	310,000	210,000

118. If net income is $150,000 and interest expense is $20,000 for Year 2, what is the rate earned on total assets for the year?

	a.	10.4%
	b.	11.9%
	c.	10.5%
	d.	8.4%

119. If net income is $150,000 and interest expense is $20,000 for Year 2, what is the rate earned on stockholders' equity for Year 2?

	a.	6.9%
	b.	14.5%
	c.	16.04%
	d.	13.8%

120. If net income is $250,000 and interest expense is $30,000 for Year 2, what are the earnings per share on common stock for Year 2?

	a.	$4.16
	b.	$4.32
	c.	$4.02
	d.	$2.49

122. A company reports the following:

Net income	$160,000
Preferred dividends	$10,000
Shares of common stock outstanding	20,000
Market price per share of common stock	$35

?

The companys earnings per share on common stock is

	a.	$13.33
	b.	$8.50
	c.	$7.50
	d.	$35.00