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d ($5,000) retained LOS 12. The following data pertains to Smith Consulting, Inc. for 2013. Compute its ending Beginning-of-year retained earnings. Net income $120,000 37.500 5,000 Dividends paid.. a $157.500 b. $152.500 c. $162,500 d $115,000 company in L02 13. A merchandising company's multi-step income statement differs from that of a service what way? a. There is no difference. b. A service company does not include a line for cost of goods sold. c. A service company has a line for selling expenses whereas a merchandising company d. A merchandising company will have a line for income from operations whereas a service does not. compaty will not. QUESTIONS 1. List three subgroups of assets that may be found in the asset section of a classified balance sheet. 2. Define current asset and normal operating cycle. 3. Which of the following are current assets: land, cash, prepaid expense, building, acounts receivablc.n ventory, equipment? 4. What is meant by corporate social responsibility? 5. Define the following ratios: current ratio, debl-to-total-assets ratio, and return on sales ratio. 6. What is meant by socially responsible investing? 7. Which of the following measures are best computed using a classified balance sheet? a. Liquidity b. Solvency c. Free cash flow d. Both a. and b. Which of the following is a correct statement? a The current ratio is a measure of firm solvency. b. The current ratio is a measure of firm liquidity c. The debt-to-total-assets ratio is a measure of firm liquidity d. None of the above is correct. Free cash flow is measured using information from which financial statement? a. b. c. d. 8. 9. Balance sheet Income statement Statement of cash flows Statement of retained earnings 10. Socially responsible investing a. b. c. Means making as much money on your investments as you can as your only goal. Means investing in companies that adhere to environmental and social policies in their operathot Is too small of a concept to matter much