Candy Company had sales of $240,000 and cost of goods sold of $122,400. What is the gross profit margin (ratio of gross profit to sales)?

49%

57%

70%

39%

Density Farms, Inc. had sales of $510,000, cost of goods sold of $180,000, selling and administrative expense of $69,000, and operating profit of $90,000. What was the value of depreciation expense?

$71,000

$171,000

$169,000

$180,000

A firm has $4,800,000 in its common stock account and $48,000,000 in its paid-in capital account. The firm issued 480,000 shares of common stock. What is the par value of the common stock?

$110 per share

$9 per share

$10 per share

$100 per share

Elgin Battery Manufacturers had sales of $960,000 in 2009 and their cost of goods sold represented 67 percent of sales. Selling and administrative expenses were 11 percent of sales. Depreciation expense was $16,000 and interest expense for the year was $13,000. The firm's tax rate is 29 percent. What is the dollar amount of taxes paid?

$184,018

$52,838

$210,000

$56,608

A firm with earnings per share of $11 and a price-earnings ratio of 21 will have a stock price of

$9.00

the market assigns a stock price independent of EPS and the P/E ratio.

$32.00

$231.00

Given the following, what is free cash flow?

Cash flow from operating activities	$205,000
Capital expenditures	37,000
Dividends	27,000

$141,000.

$242,000.

$232,000.

$195,000.

Assuming a tax rate of 41%, the after-tax cost of a $191,000 dividend payment is

$78,310

$211,000

$191,000

$121,000

Gerry Co. has a gross profit of $840,000 and $380,000 in depreciation expense. Selling and administrative expense is $111,000. Given that the tax rate is 29 percent, compute the cash flow for Gerry Co.

$110,971

$460,000

$627,790

$630,290