RUSH

A company reports the following:

	2018	2017
Net income	$ 120,000	$ 140,000
Shares of common stock outstanding	10,000	10,000
Cash dividend per share	$1.00	$1.20
Market price per share of common stock	$50.00	$40.00

What caused the price-earnings ratio to move higher in 2018?

higher profitability

more shares of common stock outstanding

lower cash dividends paid per share

higher market price per share of common stock

Which change in financial ratios indicates an improvement in a company's financial performance?

the rate earned on total assets decreased.

the current ratio and quick ratio decreased.

the number of day's sales in inventory decreased.

accounts receivable turnover decreased

Which change in financial ratios between 2017 and 2018 does not indicate an improvement in financial performance?

the rate earned on total assets increased.

the current ratio and quick ratio decreased.

the number of day's sales in inventory decreased.

accounts receivable turnover increased.

Cost of advertising in a national magazine is what type of cost?

direct materials

direct labor

factory overhead

selling and administrative expense