and Equity for the ABC Corporation for $1,933,760 The following two questions pertain to the Liabilities and Equity for the December 31, 2017 and 2018 shown below: 2018 2017 Accounts Payable $436.800 $524,160 Notes Payable 300,000 920,000 Accruals 408.000 489.600 Total Current Liabilities $1,144.800 Long-term Debt 1,800,000 800,000 Common Stock $ 460,000 460,000 Retained Earnings 92.352 (327.168) Total Equity $1.552.352 $ 132,832 Total Liabilities and Equity $3.497.152 $2.866.592 Which of the following statements best characterize the financing activities that ABC conducted during 2018? a. ABC issued new common stock and used the proceeds to pay down short-term co b. ABC increased its short-term liabilities and used the funds to increase accounting income and retained earnings. c. ABC reduced its notes payable with new long-term debt. d. ABC refinanced its short-term liabilities with new common equity. e. ABC's accounting losses for the year were financed with new long-term debt. 10. 11. Given the above information in the problem above), what could an investor or lender conclude from ABC's activities during the accounting period? a. ABC's activities have significantly reduced the firm's short-term credit risk. b. ABC's activities have significantly reduced the firm's operating performance. c. ABC's activities have significantly increased the firm's manufacturing efficiency, d. ABC's activities have significantly decreased the firm's financial leverage. ABC's activities have significantly increased the firm's financial leverage. 12. ABC Corporation has been enjoying a phenomenal rate of growth since its inception one year ago. Currently assets total $100.000. If growth continues at the current rate of 12% compounded quarterly, what will be total assets in 3 1/2 years? i slay $157,352 d. $151,259 N= 3 Vayears $148,684 e $160,471 Amt c. $188,711 PV = 100,000 fv= U Ten years ago you boughth $15 stock which is now worth $75. Assuming that the stock paid no dividends, the rate of return on your investment was: i= 11.70 percent d. 20.00 percent b. 21.79 percent e. 17.46 percent N=10 c. 49.00 percent PV = $75 N= 10 PMT=15 5 $ 23,740 $ 1,344 $22,396 $ 0 The missing value for the Principal Reduction in the second year (labeled A) is: 15. a. b. $19,079 $18,409 $18,804 $18,338 $18,550 e. 6. The missing value for the Interest Payment in the third year (labeled B) is: $ 3,807 $ 3,248 $ 3.000 $ 4,300 $ 3,944 b. c. e. Fred Johnson is retiring one year from today. How much should Fred currently have in a retirement account earning 4 percent interest to guarantee withdrawals of $60,000 per year for 20 years? d. a. b. c. $1,660,274 $ 815,420 $1,200,000 $1,786,685 $ 848,036 What 13 t h on the near the end of each month has the charge and 1. 16.08 15.00 31.10 j ent to remittentive equal annual we on this loan? A tim p hases 100 acres of land for $200,000 and agrees to to SIX35 eachWhat is the true annual interest rate on 10.00 percent 0.00 Cent 8.00 percent 12.00 percent 15.00 percent You want to set up a trust fund. If you make a payment at the end of each year for this and cam p er year, how large must your annual payments be so that the trust is won $1,000,000 at the end of the thirtieth year? S16,015 $ 6,644 $ 3.322 $15.051 $65,051 Starting on January 1, 2019, and then on each January 1 until 2028 (10 payments), you will make payments of $5,000 into an investment which yields 6 percent. How much will your investment be worth on December 31 in the year 2038 if the account continues to pay the same interest rate? d. e. $ 65,904 $125,105 b. $118,024 $183,928 $123,605
