I Need Help answering these accounting questions 31, 32, 33, 34. Please

Bus 645, Financial Management, Test 1 Dr. Wei Feng Name: Date: November 27, 2015 Part I: Multiple choices (2 * 30 = 60 points) 1 D 6 A 11 B 16 2 D 7 B 12 B 3 B 8 C 13 4 D 9 A 5 D 10 C A 21 26 17 22 27 B 18 23 28 14 A 19 24 29 15 D 20 25 30 Part II. Questions (10 * 4 = 40 points) 31. If a company sells additional common stock and uses the proceeds to increase its inventory level and to increase its cash balances, what is the near-term (immediate) impact (increase, decrease, no change) of this transaction on the following ratios? Please include your reasoning. a. Current ratio b. Return on stockholder's equity c. Quick ratio d. Debt to total assets e. Total asset turnover 32. (10 points) Keystone Resources has a net profit margin of 8% and earnings after taxes of $2 million. Its current balance sheet is as follows: 1 a. Calculate Keystone's return on stockholder's equity b. What does a comparison of Keystone to the industry average indicate about the firm's strengths and weaknesses? 33: (10 points) Suppose Company Y has a taxable inform of 12,000,000. Calculate the total tax bill, average tax rate and marginal tax rate. Use the following tax rate table for your calculations. 34. (10 points) Y bank has offered you a $1,000,000 5-year loan at an interest rate of 11.5%, 2 requiring equal annual end-of-year payments that include both principal and interest on the unpaid balance. Develop an amortization schedule for this loan. Out of the 4th year payment, what is the amount for principal and interest respectively? 3