An increase in the depreciation expense will do which of the following? I. increase net income II. decrease net income III. increase the cash flow from assets IV. decrease the cash flow from assets

I only

II only

I and III only

II and III only

II and IV only

The Meat Market has $747,000 in sales. The profit margin is 4.1 percent and the firm has 7,500 shares of stock outstanding. The market price per share is $27. What is the price-earnings ratio?

A 6.61

B 8.98

C 11.42

D 13.15

E 14.27

		$303.33
		$327.18
		$334.43
		$338.70
		$341.10

Fresno Salads has current sales of $4,900 and a profit margin of 6.5 percent. The firm estimates that sales will increase by 5 percent next year and that all costs will vary in direct relationship to sales. What is the pro forma net income?

The most recent financial statements for Watchtower, Inc. are shown here (assuming no income taxes): Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year's sales are projected to be $5,002. What is the amount of the external financing need?

	$197
	$203
	$211
	$218
	$223