1. Using the following information, compute CURRENT LIABILITIES.

   Cost of Goods Sold	9,000
   Accounts Payable	1,100
   Paid-in Capital	1,750
   Cash	400
   Sales	10,000
   Accrued Wages Payable	250
   Dividends	700
   Retained Earnings (beginning)	1,000
   Inventory	4,000

   Hint: An item that appears in the income statement does NOT also appear in the balance sheet.

   • $3,100
   • $4,100
   • $2,050
   • $950
   • $1,350

2. During Year 1, Knight Company recorded the following information on its Income Statement.

   Sales revenue	$500,000
   Interest expense	10,000
   Interest income	15,000
   Gross Profit (or Gross Margin)	200,000
   Selling and administrative expenses	75,000
   Income tax expense	12,000

   What is Knight Companys cost of goods sold for Year 1?

   • $ 300,000
   • $ 188,000
   • $ 430,000
   • $ 155,000
   • $ 220,000

3. Use the following information to compute NET INCOME. The income tax rate is 40%.

   Cost of Goods Sold $ 4,000

   Interest Expense 1,100

   Selling and Administrative Expense 1,750

   Sales 10,000

   Dividends 700

   • $1,470
   • $1,890
   • $1,190
   • $1,260
   • $980

4. Using the data below, compute Price-Earnings Ratio.

   Accounts Payable 800

   Accounts Receivable 1,100

   Capital Stock 2,000

   Cash 50

   Cost of Goods Sold 6,000

   Inventory 1,500

   Long-term Debt 1,820

   Net Income 950

   Property, Plant, and Equipment (net) 3,000

   Retained Earnings 1,030

   Sales 10,000

   Market value of shares 12,000

   • 12.6
   • 6.3
   • 6.9
   • 15.0
   • 11.7