The following amounts were taken from the financial statements of Plant Company:

2015 2014

Total assets $800,000 $1,000,000

Net sales 840,000 650,000

Gross profit 370,000 320,000

Net income 185,400 117,000

Weighted average number of common shares outstanding 90,000 90,000

Market price of common stock $35 $39

The profit margin ratio for 2015 is:

	a.	18.5%.
	b.	22%.
	c.	44%.
	d.	19.4%.

2.

Which of the following would decrease net cash provided by operating activities?

	a.	Decrease in inventory.
	b.	Loss on the sale of equipment.
	c.	Decrease in short term notes payable.
	d.	Depreciation expense.

3.An example of a cash flow from an operating activity is:

	a.	Receipt of cash from the sale of capital stock.
	b.	Payment of cash dividends to the companys stockholders.
	c.	None of the above.
	d.	Cash receipts from dividends