Candle Company reported net income of $120,000 for the year ended December 31, 2012.

During the year, inventories decreased by $25,000, accounts payable decreased

by $24,000, depreciation expense was $33,000, and a gain on disposal of equipment of

$16,000 was recorded. Net cash provided by operations in 2012 using the indirect method was:

2.

Santo Corporation had net income of $250,000 and paid dividends to common

stockholders of $50,000 in 2016. The weighted average number of shares outstanding

in 2016 was 50,000 shares. Santo Corporations common stock is selling at $40 per share

on the New York Stock Exchange. Santos Corporation payout ratio for 2005 is:

	a.	12.5%
	b.	20%
	c.	8%
	d.	2.5%

6.

The following financial statement information is available for Penn Corporation:

2017 2016

Stockholders' equity - common $350,000 $270,000

Net sales 784,000 697,000

Cost of goods sold 406,000 377,000

Net income 115,000 80,000

Inc tax expense 48,000 29,000

Interest expense 14,000 14,000

The return on common stockholders equity for 2017 is

	a.	28%
	b.	26%
	c.	32.9%
	d.	29.3%