Question#1 - Given the following data:

Net Income $500,000

Preferred Dividends 40,000

Common Dividends 250,000

Common Shares 150,000

Calculate:

a. Earnings per share:

b.The price-earnings ratio

c. The dividend yield rate on common stock

#2 - Given the following data:

1990 1989

Cash $ 70,000 $ 59,000

Marketable Securities 25,000 21,000

Accounts Receivable 120,000 140,000

Merchandise Inventory 190,000 240,000

Current Liabilities 160,000 152,000

Credit Sales (net sales) 3,000,000 2,716,000

Cost of Goods Sold 2,500,000 2,160,000

Calculate for 1990:

a. Working Capital

b. Current Ratio

c.Quick Ratio

d.Inventory

e. Accounts Receivable

#3- For the year ended December 31,1989 the Allentown Company reported increases in Accounts Receivable and Inventories in the amounts of $1200 and $1700 respectively. Increases were also reported in Salaries Payable ($2,000) and Accounts Payable ($3,500). Included in the determination of the $5,600 net income figure was the Depreciation Expense ($1,800) and a Loss on the Sale of Land ($1,400).

During the year Allentown received $19,000 from the sale of land, paid $13,500 for equipment and $1,000 for dividends, and issued common stock receiving $16,000.

The beginning cash balance was $2,700.

How do I prepare a statement of cash flows using the indirect approach?