Since accounting statements are based on historical results and rigid GAAP rules, they offer no insight into the behavior of a company

True

False

Full Moon Pizzas has just reported the following financial information (all numbers are in thousands):

Sales: 433

COGS: 158

SG&A: 49

Depreciation: 26

Interest: 17

Tax rate: 27%

What was Full Moon Pizzas' operating income (in thousands)?

Clorox is thinking about introudcing a new brand of cleaning products. Marketing and developing the new products will cost 585 million dollars. In one year, the new products will generate a cash flow of 32 million dollars. In two years, the new products will generate a cash flow of 59 million dollars. In three years, the new products will generate a cash flow of 83 million dollars. After that, cash flows are expected to grow by 2% forever. If the cost of capital is 11%, what is the NPV of this project (in millions)?

Pennsylvania levys a personal income tax rate of 3.07% on all income. Thus, Pennsylvania's personal income tax is an example of a:

		Progressive Tax
		Flat Tax
		Regressive Tax
		Optional Tax
		None of the above