QUESTION 17 Yeats Corporation's sales in Year 1 were $396,000 and in Year 2 were $380,000. Using Year 1 as the base year, the percent change for Year 2 compared to the base year is. 0-4% O 96% O 100% 0-104% O 4.2% QUESTION 21 A company is considering the purchase of a new machine for $48,000. Management predicts that the machine can produce sales of $16,000 each year for the next 10 years. Expenses are expected to include direct materials, direct labor, and factory overhead totaling $12,000 per year including depreciation of $3,000 per year. Income tax expense is $1,600 per year based on a tax rate of 40%. What is the payback period for the new machine? 0 20.0 years O 8.9 years 12.0 years O 7.5 years O 6.0 years QUESTION 23 A corporation reports the following year-end balance sheet data. The company's acid-test ratio equals: Cash Accounts receivable Inventory Equipment Total assets $ 40,000 Current liabilities 55,000 Long-term liabilities 60,000 Common stock 145,000 Retained earnings $ 300,000 Total liabilities and equity $ 75,000 35,000 100,000 90,000 $ 300,000 O 1.27 0.58 O 0.63 O 0.37 O 2.07 QUESTION 25 A corporation reports the following year-end balance sheet data. The company's current ratio equals: Cash Accounts receivable Inventory Equipment Total assets $ 40,000 55,000 60,000 145,000 $ 300,000 Current liabilities Long-term liabilities Common stock Retained earnings Total liabilities and equity $ 75,000 35,000 100,000 90,000 $ 300,000 O 0.37 0.63 O 1.27 O 2.07 O 0.58