Royce Corp's sales last year were $250,000, and its net income was $23,000. What was its profit margin?

a. 8.42% b. 9.20% c. 6.90% d. 12.27% e. 4.60%

As assistant to the CFO of Boulder Inc., you must estimate the Year 1 cash flow for a project with the following data. Under the new tax law, the equipment used in the project is eligible for 100% bonus depreciation, so it will be fully depreciated at t = 0. What is the Year 1 cash flow? Do not round the intermediate calculations and round the final answer to the nearest whole number. Sales revenues $11,500 Operating costs $4,000 Tax rate 25.0%

a. $7,500 b. $4,625 c. $5,625 d. $9,375 e. $6,000

Howton & Howton Worldwide (HHW) is planning its operations for the coming year, and the CEO wants you to forecast the firm's additional funds needed (AFN). Data for use in the forecast are shown below. However, the CEO is concerned about the impact of a change in the payout ratio from the 10% that was used in the past to 50%, which the firm's investment bankers have recommended. Based on the AFN equation, by how much would the AFN for the coming year change if HHW increased the payout from 10% to the new and higher level? All dollars are in millions. Do not round intermediate calculations.

Last year's sales = S0	$300		Last year's accounts payable	$50
Sales growth rate = g	40%		Last year's notes payable	$15
Last year's total assets = A0	$500		Last year's accruals	$20
Last year's profit margin = PM	20%		Initial payout ratio	10%
			New payout ratio	50%

a. $24.0 million

b. $45.6 million

c. $36.0 million

d. $50.4 million

e. $33.6 million