73. Days in the Operating Cycle equals:
    1. Days in Inventory - Days in Receivables + Days in Payables
    2. Days in Inventory + Days in Receivables Days in Payables
    3. Days in Inventory + Days in Receivables + Days in Payables
    4. Days in Inventory - Days in Receivables Days in Payables

74. The ending Retained Earnings balance of ABC increased by $1.5 million from the beginning of the year. The company's net income earned during the year is $3.5 million. What is the amount of dividends ABC declared and paid?
    1. $3.5 million. B) $2.0 million. C) $1.5 million. D) $5.0 million.

75. Which of the following is NOT an example of aggressive accounting practices?
    1. Recording contingent losses that are probable.
    2. Increasing the useful life used in calculating depreciation.
    3. Recording research and development costs as assets.
    4. Using a lower estimate of bad debts.

76. ABC issued callable bonds on January 1, 2018. ABC's accountant has projected the following amortization schedule from issuance until maturity:

Date	Cash Paid	Interest Expense	Increase in Carrying Value	Carrying Value
1/1/2018				$194,758
6/30/2018	$7,000	$7,790	$790	195,548
12/31/2018	7,000	7,822	822	196,370
6/30/2019	7,000	7,855	855	197,225
12/31/2019	7,000	7,889	889	198,114
6/30/2020	7,000	7,925	925	199,039
12/31/2020	7,000	7,961	961	200,000

What is the annual stated interest rate on the bonds? (Hint: Be sure to provide the annual rate rather than the six month rate.)

A) 6%. B) 3.5%. C) 7%. D) 3%.

77. Par value of shares is
    1. an important number for common stock but a garbage number for preferred shares
    2. an important number for both common and preferred shares
    3. a garbage number for common stock but an important number for preferred shares
    4. a garbage number for both common and preferred shares