Question 2 (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 $10,000, respectively. $13,000 and -$17,000, respectively. None of the above $13,000 and -$107,000, respectively $13,000 and $120,000, respectively. Previous Page Next Page Page 2 of 46 Question 8 (1 point) A manufacturing company made recently a large investment in China. While this investment will not have much of an effect on performance in the short run, they are expected to increase future cash flows significantly. What effect do you expect on the firms' earnings per share this year, as well as the future stock price, assuming all other factors stay constant and the new investment is expected to be profitable? Earnings per share in the current year will decline. Stock price will increase. Earnings per share in the current year will increase. Stock price will decline. Earnings per share in the current year will increase. Stock price will increase. None of the answers is correct Earnings per share in the current year will decline. Stock price will decline. Previous Page Next Page Page 8 of 46 Previous Page Next Page Page 11 of 46 Question 11 (1 point) A company has a 50% payout ratio and pays 100,000 in dividends. What is the company's taxable income (EBT)? Assume a 30% tax rate. None of the answers is correct $285,714 $140,000 $200,000 $666,666 Question 16 (1 point) You are given the following information for Happy's Pizza Co.: Sales/Revenues = 500,000 Cost/Expenses = 250,000 EBIT = 200,000 Interest = 20,000 Tax rate 30% What is the amount of depreciation shown in the Income Statement? None of the answers is correct 50,000 O 160,000 300,000 54,000 Question 17 (1 point) A company has 120 million in net income and pays 50 million in dividends. What is the company's retained earnings? $170,000,000 $120,000,000 None of the answers are correct $70,000,000 $50,000,000