1. New product development activities can impact which of the following?

   • a. Cash flow statement
   • b. Profit
   • c. COGS
   • d. Balance sheet
   • e. Income statement
   • f. All of the above

2. Given the following financial statements for GM, what is the current ratio? (Round your answer to the nearest 100^ths place value.)

   General Motors: Income Statement	12/31/14
   Total Revenue		155,929,000
   Cost of Revenue		142,121,000
   Gross Profit		13,808,000
   Operating Expenses
   Selling, General and Administrative		12,158,000
   Non-Recurring		120,000
   Operating Income or Loss		1,530,000
   Net Income		3,949,000
   General Motors: Balance Sheet		12/31/14
   Cash And Cash Equivalents		20,292,000
   Short-Term Investments		9,222,000
   Net Receivables		35,366,000
   Inventory		13,642,000
   Other Current Assets		5,148,000
   Total Current Assets		83,670,000
   Long-Term Investments		24,356,000
   Property, Plant, and Equipment		34,803,000
   Goodwill		1,427,000
   Intangible Assets		4,983,000
   Other Assets		3,024,000
   Deferred Long-Term Asset Charges		25,414,000
   Total Assets		177,677,000
   Current Liabilities
   Accounts Payable		50,713,000
   Short/Current Long-Term Debt		14,988,000
   Total Current Liabilities		142,220,000
   Long-Term Debt		31,853,000
   Other Liabilities		44,099,000
   Minority Interest		567,000
   Total Liabilities		142,220,000
   Stockholders' Equity
   Common Stock		16,000
   Retained Earnings		14,577,000
   Capital Surplus		28,937,000
   Other Stockholder Equity		-8,073,000
   Total Stockholder Equity		35,457,000

3. Given the following financial statements for GM, the return on assets is ______ percent? (Write your answer as a percentage, rounding to the nearest 100^ths place valuee.g., 5.25. Omit the percent sign in your answer.)

   General Motors: Income Statement	12/31/14
   Total Revenue		155,929,000
   Cost of Revenue		142,121,000
   Gross Profit		13,808,000
   Operating Expenses
   Selling, General and Administrative		12,158,000
   Non-Recurring		120,000
   Operating Income or Loss		1,530,000
   Net Income		3,949,000
   General Motors: Balance Sheet		12/31/14
   Cash And Cash Equivalents		20,292,000
   Short-Term Investments		9,222,000
   Net Receivables		35,366,000
   Inventory		13,642,000
   Other Current Assets		5,148,000
   Total Current Assets		83,670,000
   Long-Term Investments		24,356,000
   Property, Plant, and Equipment		34,803,000
   Goodwill		1,427,000
   Intangible Assets		4,983,000
   Other Assets		3,024,000
   Deferred Long-Term Asset Charges		25,414,000
   Total Assets		177,677,000
   Current Liabilities
   Accounts Payable		50,713,000
   Short/Current Long-Term Debt		14,988,000
   Total Current Liabilities		142,220,000
   Long-Term Debt		31,853,000
   Other Liabilities		44,099,000
   Minority Interest		567,000
   Total Liabilities		142,220,000
   Stockholders' Equity
   Common Stock		16,000
   Retained Earnings		14,577,000
   Capital Surplus		28,937,000
   Other Stockholder Equity		-8,073,000
   Total Stockholder Equity		35,457,000

4. Bookmark question for later

   Interest and taxes dont have anything to do with the quality of your operating decisions.

   True/False