AOS Industries Statement of Cash Flows for 2008

Operating activities

Net Income

3.2

Depreciation and amortization

1.4

Cash effect of changes in

?

Accounts receivable

-1.9

?

Accounts payable

1.0

?

Inventory

-0.6

Cash from operating activities

3.1

Investment activities

Capital expenditures

-2.2

Acquisitions and other investing activity

-0.4

Cash from investing activities

-2.6

Financing activities

Dividends paid

-1.0

Sale or purchase of stock

2.1

Increase in short-term borrowing

1.4

Increase in long-term borrowing

3.2

Cash from financing activities

5.7

Change in Cash and Cash Equivalents

6.2

Consider the above statement of cash flows. If all amounts shown above are in millions of dollars, what were AOS Industries' retained earnings for 2008?

$4.4 million

$5.2 million

$2.2 million

$3.1 million

Your uncle just won the weekly lottery, receiving $375,000, which he invested at a 7.5% annual rate. He now has decided to retire, and he wants to withdraw $35,000 at the end of each year, starting at the end of this year. What is the maximum number of whole payments that can be withdrawn before the account is exhausted, i.e., before the account balance would become negative? (Hint: Round down to the nearest whole number.)

	a.	25
	b.	26
	c.	23
	d.	22
	e.	24