Q1

The balance sheets at the end of each of the first two years of operations indicate the following: 201 1 2010 otal current assets $600,000 $560,00C otal investments 60,000 40,00C otal property, plant, and equipment 900,000 700,00C otal current liabilities 125,000 80,00C otal longterm liabilities 350,000 250,00C Preferred 9% stock, $100 par 100,000 100,00C Common stock, $10 par 600,000 600,00C Paidin capital in excess of parcommon stock 60,000 60,00C Retained earnings 325,000 210,00C If net income is $130,000 and interest expense is $40,000 for 2011, what are the earnings per share on common stock for 2011 [rounded to two decimal places]? Select one: (Q a. $2.17 0 b. $2.68 0 c. $2.02 0 d. $2.32 The balance sheets at the end of each of the first two years of operations indicate the following: 201 1 2010 otal current assets $600,00C $560,00C otal investments 60,00C 40,00C otal property, plant, and equipment 900,00C 700,00C otal current liabilities 125,00C 80,00C otal longterm liabilities 350,00C 250,00C Preferred 9% stockr $100 par 100,00C 100,00C Common stock, $10 par 600,00C 600,00C Paidin capital in excess of parcommon stock 60,00C 60,00C Retained earnings 325,00C 210,00C If net income is $130,000 and interest expense is $40,000 for 2011, and the market price is $40, what is the priceearnings ratio on common stock (rounded to one decimal place)? Select one: C) a. 14.9 C) b. 18.4 C) c. 17.3 0 d. 19.8 Based on the following data for the current year, what is the accounts receivable turnover? Net sales on account during year $ 525,500 Cost of merchandise sold during year 375,000 Accounts receivable, beginning of year 50,000 Accounts receivable, end of year 40,000 Inventory, beginning of year 110,000 Inventory, end of year 140,000 Select one: C) a. 13.14 C) b. 11.7 C) c. 10.35 C' d. 8.3 Using the following partial table of present value of $1 at compound interest, determine the present value of $20,000 to be received three years hence, with earnings at the rate of 10% a year. Year 6% 10% 12% 943 909 .893 2 .890 826 797 3 .840 751 712 4 792 683 636 Select one: O a. $14,240 O b. $16,800 O c. $15,020 O d. $15,840The rate of earnings is 10% and the cash to be received in two years is $10,000. Determine the present value amount, using the following partial table of present value of $1 at compound interest. Year 6% 10% 12% 1 .943 .909 .893 2 .89C .826 .797 3 .846 .751 .712 4 .792 .683 .636 Select one: 0 a. $8,900 0 b. $8,260 0 c. $7,970 0 d. $9,090 The expected average rate of return for a proposed investment of $3,000,000 in a fixed asset giving effect to depreciation (straightline method} with a useful life of 20 years, no residual value, and an expected total income of $6,000,000 is Select one: C) a. 25%. O b. 18%. O c. 40%. 69 d. 20%