GoodTimes, Inc. has asset turnover of 0.5 times, a net profit margin of 10% and average total assets of $100, what is its net income (assuming no unusual items)?

A)$50

B) $500

C) $5

D) The answer cannot be determined with the information provided.

A share repurchase is financially equivalent to a dividend.

A) True

B) False

You are trying to decide whether to accept or reject a one-year project. The project is estimated to generate $5,000 in incremental gross profit, which includes $200 in depreciation. Incremental SG&A expense is $400. At a 35% tax rate, the after-tax incremental cash flow is:

A)$2,990

B)$3,190

C)$3,250

D)$3,510