7. The following statement of financial position and statement of comprehensive income should be used.

Woodburn, Inc. 2018 Statement of comprehensive income ($ in thousands)
Net Sales	$6,380
Less: Cost of Goods Sold	4,120
Less: Depreciation	360
Earnings Before Interest and Taxes	1,900
Less: Interest Paid	45
Taxable Income	1,855
Less: Taxes	650
Net Income	1,205

Woodburn, Inc. Statement of financial position Years ended 2017 and 2018 ($ in thousands)
	2017	2018		2017	2018
Cash	$230	$340	Accounts payable	$850	1,020
Accounts rec.	910	950	Long-term debt	1,650	1,400
Inventory	1,490	1,460	Common stock	2,500	2,200
Total	2,630	$2,750	Retained earnings	820	1,350
Net fixed assets	3,190	3,220
Total assets	$5,820	$5,970	Total liabilities & equity	$5,820	$5,970

What is Woodburn's total debt ratio for 2018?

Multiple Choice

• 40.54 %

• 43.09 %

• 35.42 %

• 23.45 %

• 29.01 %

8. Adams Co is expected to pay the following dividends over the next four years: $13.30, $9.30, $8.30, and $3.80. Afterward, the company pledges to maintain a constant 5% growth rate in dividends forever. If the required return on the stock is 12%, what is the current share price?

9. Sales $ 734,000

Costs 315,000

Depreciation expense 48,000

Interest expense $35,000

Tax rate 35%

Cash dividends $ 85,000

Required 1) Prepare a statement of comprehensive income using the proper format. 2) What is the Addition to Retained Earnings?

10. You have decided you would like to own some shares of the Clean Coal Company but need a 16% rate of return to compensate for the perceived risk of such ownership. What is the maximum you are willing to spend per share to buy this stock if the company pays a constant $1.75 annual dividend per share?

Multiple Choice

• $18.60

• $10.94

• $22.81

• $12.69

• $9.19

11. Colwood Corp. has 9.3% coupon bonds making annual payments with a YTM of 8.5%, current market value of $1,059.50.

How many years do these bonds have left until they mature? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)