Question 1 (1 point) Garfield Corporation made sales totaling $120,000 during the past year at a total cost of $107,000. Although the firm paid in full for the merchandise during the year, it has yet to collect at year end from the customer. The net profit and cash flow from this sale for the year are: $13,000 and -$17,000, respectively. None of the above $13,000 and $107,000, respectively $13,000 and $10,000, respectively. $13,000 and $120,000, respectively. Question 4 (1 point) Which of the following statements is correct? The intrinsic value of a company is the present value of all future cash flows None of the answers is correct The stock value accounts just for current cash flows but not future cash flows The intrinsic value is just current profits Current earnings account for future cash flows Question 7 (1 point) Which of the following actions would be likely to encourage a firm's managers to make decisions that are in the best interest of shareholders? The state legislature passes a law that makes it more difficult to successfully complete a hostile takeover. The shareholders give the firm's managers at the annual meetings greater freedom to take whatever actions they decide to take. The percentage of fixed executive compensation in the form of cash is increased. The number of institutional investors (large shareholders) who can afford to monitor the firm's managers, rises substantially. None of the answers is correct