ABC Inc. was incorporated two years ago by issuing 5,000 shares of common stock at $400 each and borrowing $240,000 from a bank on a long-term note. Last year, ABC reported net income of $40,000 and paid a cash dividend of $1,800. Last year the company also borrowed an additional $320,000 from the bank. What was total assets on ABC's balance sheet at the end of the year last year?

Select one:

a.None of these

b.$2,600,000

c.$2,558,200

d.$2,598,200

On December 31, 2017, Johnson Inc. has total liabilities of $520,000 and total equity of $446,000. The company needs to raise additional funds through debt and equity. The company will issue 1,000 shares of common stock at $9 per share and in addition it intends to borrow as much as it can from Bank of Morganville. Bank ofMorganville requires a maximum debt-to-asset ratio of 0.8.

What is the maximum additional amount that Johnson Inc. can borrow after the additional stock is issued?

Select one:

a.$1,264,000

b.$1,300,000

c.$260,000

d.$0 (the company already exceeds the 0.8 debt-to-asset ratio)

Paper Inc. sells markers. During January 2018, its inventory records for one brand of its markers were as follows:

Quantity Price per market Total

Beginning Inventory 16 $1.21 = $19.36

January 6 Purchase 6 $0.88 =$5.28

January 10 Sale 9 N/A

January 15 Purchase 8 $0.91 =$7.28

January 20 Sale 3 N/A

January 25 Purchase 9 $0.85 =$7.65

Determine the cost of goods sold using the perpetual weighted average cost method.

Select one:

a.$12.96

b.$13.20

c.$13.58

d.$12.18