QUESTION IT A company balance sheet reflects $10,000 in total assets and $6,000 in total liabilities. Total sales on its income statement are $30,000, and the company's ROE is 15%. How much net income did the company have in the current year? C$4000 C$600 C$4500 C$1500 C Cannot be determined from information given QUESTION 12 In completing a ratio analysis, you determine that a potential problem is occurring with inventory, since the inventory turnover is too low relative to the industry and has been decreasing over time. Which of the following could be a possible cause? C Too much inventory on hand C Obsolete inventory Prices are too high All of the above QUESTION 13 A financial security is expected to produce the following annual cash flows: Year 1: $25,000 Year 2: $15,000 Year 3: $10,000 Year 4: $5,000 Year 5: $5,000 What is the security's value today, that is, how much should a company be willing to pay for this security today if you require a 15% annual return? C$55,000 C$60,000 C$45,001.10 C$52,173.91 C$70,588.24 QUESTION 14 You have just purchased a new car for $21,000. A down payment of $2000 was made and you took out a loan for the balance. The loan terms include an APR of 8.5% compounded monthly and you will be making monthly payments at the end of each month. The loan is for a term of 5 years. What is the amount of your loan payment that you will be paying each month? C$387.07 C$389.81 C $427.82 C$430.85 There is not enough information to calculate the loan payment QUESTION 15 Your grandmother invested $1,000 for you on the day you were born. This investment has earned an average of 12% annually. How old are you if the investment is now worth $15,540? C 21.34 years C 28.54 years C 24.21 years C31.46 years C none of the other choices are correct