9.

Excerpts from Dowling Company's December 31, 2016 and 2015, financial statements and key ratios are presented below (all dollar values are in millions):

	2016	2015
Accounts receivable (net)	$30	$26
Net sales	$160	134
Cost of goods sold	$85	70
Net income	$30	27
Inventory turnover	5.00
Return on assets	11.4%
Equity Multiple	2.47

Dowling's return on equity for 2016 is (Round your answer to whole percentage):

a) 26%

b) 28%

c) 19%

d) 10%

10.

Excerpts from Dowling Company's December 31, 2016 and 2015, financial statements and key ratios are presented below (all dollar values are in millions):

	2016	2015
Accounts receivable (net)	$39	22
Net sales	$180	110
Cost of goods sold	$104	89
Net income	$39	16
Inventory turnover	5.20
Return on assets	12.2%
Equity multiple	2.55

Dowling's average total assets for 2016 is (Round your answer to whole number):

a) 44

b) 321

c) 180

d) 320

11.

On December 15, 2016, Rigsby Sales Co. sold a tract of land that cost $3,200,000 for $5,000,000. Rigsby appropriately uses the installment sales method of accounting for this transaction. Terms called for a down payment of $420,000 with the balance in two equal annual installments payable on December 15, 2017, and December 15, 2018. Ignore interest charges. Rigsby has a December 31 year-end. At December 31, 2017, Rigsby would report in its balance sheet:

a) Defferred gross profit of $824,400

b) Cost of installment sales $1,465,600

c) Realized gross profit of $420,000

d) Realized fross profit of $824,400

19.

Present and future value tables of $1 at 3% are presented below:

N	FV $1	PV $1	FVA $1	PVA $1	FVAD $1	PVAD $1
1	1.03000	0.97087	1.0000	0.97087	1.0300	1.00000
2	1.06090	0.94260	2.0300	1.91347	2.0909	1.97087
3	1.09273	0.91514	3.0909	2.82861	3.1836	2.91347
4	1.12551	0.88849	4.1836	3.71710	4.3091	3.82861
5	1.15927	0.86261	5.3091	4.57971	5.4684	4.71710
6	1.19405	0.83748	6.4684	5.41719	6.6625	5.57971
7	1.22987	0.81309	7.6625	6.23028	7.8923	6.41719
8	1.26677	0.78941	8.8923	7.01969	9.1591	7.23028
9	1.30477	0.76642	10.1591	7.78611	10.4639	8.01969
10	1.34392	0.74409	11.4639	8.53020	11.8078	8.78611
11	1.38423	0.72242	12.8078	9.25262	13.1920	9.53020
12	1.42576	0.70138	14.1920	9.95400	14.6178	10.25262
13	1.46853	0.68095	15.6178	10.63496	16.0863	10.95400
14	1.51259	0.66112	17.0863	11.29607	17.5989	11.63496
15	1.55797	0.64186	18.5989	11.93794	19.1569	12.29607
16	1.60471	0.62317	20.1569	12.56110	20.7616	12.93794

Shelley wants to cash in her winning lottery ticket. She can either receive five, $186,000 semiannual payments starting today, or she can receive a lump-sum payment now based on a 6% annual interest rate. What is the equivalent lump-sum payment?

a) $877,381

b) $1,037,832

c) $1,193,597

d) $1,344,832

20. Using the chart from the above question:

Jimmy has $178,767 accumulated in a 401K plan. The fund is earning a low, but safe, 3% per year. The withdrawals will take place at the end of each year starting a year from now. How soon will the fund be exhausted if Jimmy withdraws $33,000 each year?

a) 6 years

b) 9 years

c) 5 years

d) 8 years