Cash 50 50 Payables 175 Receivables 100 150 Long-term debt 175 150 1000 Inventory 200 200 Common stock 250 300 SGA expenses Depreciation 950 Net fixed assets 750 900 Retained earnings 500 650 EBIT 550 Interest 300 CF ( A ) = 2075 - 1100 - 25 = $550 Taxable income 250 Taxes 425 Net income 825 2. What dividends were paid in 2018? (5) 825 - (650- 500) = $675 Netincome - (retained earn . retain 2018 earn 3. Gamble: What was the payout ratio in 2018? (5 or -5) 2017 475 / 825 =. 82 4. If a $2000 investment grew to $3500 after 11 years, what was the annual rate of return? (5). 3 500 2, 000 1/1 - 1 = 0. 0522 5. What was the holding period return in the preceding problem? (5) 350 0 2,000 - 1 =.75 6. How many years would be needed for a $1200 investment to grow to $3000 if the annual return were 12%? (5) In 3060 1200 . 9163 In ( 1. 12 ) 1133 7. What is the future value after 3 years of the deposits below if interest were 2%? (5) Year 3 Deposit 3200 $400 $300 200 ( 1.02) 2 + 400 ( 1.02 ) ' + 300 = 916