Which of the following is not true for a business formed as a corporation? a. Owners have unlimited liability b. Double taxation c. Easy access to capital

2. The value of a stock price should decrease when the expectation of future cash flows ________, the probability of receiving future cash flows _________, and the length of time until cash flows received ___________. a. decreases; increases; decreases b. decreases; increases; increases c. decreases; decreases; increases d. decreases; decreases; decreases e. increases; decreases; decreases

3. The average tax rate is always _________ the marginal tax rate. a. less than b. less than or equal to c. greater than d. greater than or equal to

4. Which of the basic financial statements is best used to answer the question "How much were sales and what were the expenses for the year?" a. Balance sheet b. Statement of retained earnings (stockholders equity) c. Income statement d. Cash flow statement

5. A & K Co. expects to have earnings before taxes of $250,000 to $300,000. The company's marginal tax rate is 39% and its average tax rate about 33%. For every additional dollar of revenue, A & K's taxes will: a. increase by 39 cents. b. fall by 39 cents. c. be unaffected. d. increase by 33 cents. e. fall by 33 cents

6. Holding all other variables constant, which of the following could cause a firm's current ratio to increase from 2.5 to 3.0? An increase in a. inventory b. accounts payable c. long term debt d. long term assets e. stockholders equity

7. Butch forecasted next years financial statements assuming $65,000 of depreciation. Alternatively, if Butch assumes depreciation to be $75,000 (all other numbers, including revenues and expenses are unchanged), the newly projected net income would be ____, taxes would be _____, and cash flow would ____. a. higher; higher; higher b. lower; lower; lower c. lower; lower; higher d. lower; higher; lower e. higher; higher; lower

8. Holland Brewery has the following ratios compared with the industry: Holland Brewery Industry Current ratio 1.7 2.3 time Days Sales Outstanding 26 days 28 days Relative to other microbreweries, is Holland Brewery's ratios inferior or superior?

9. Using the information provided, calculate net income for 2020. Year 2020 Operating expenses $15,000 Inventory 5,000 Interest expense 10,000 Sales 150,000 Cost of goods sold 90,000 Dividends paid 100,000 Tax Rate 25%

10. For the year 2019, Cherry Republic had net income of $5 million, sales of $45 million, and paid dividends of $4.5 million. Cherry Republics beginning balance for retained earnings was $11 million. Calculate Cherry Republics ending balance for retained earnings.

11. Ortny Industries has an accounts receivable turnover ratio of 4.3. If Ortny has an accounts receivable balance of $90,000, what is Ortny's average daily credit sales? (assume 365 days in a year)

12. Kiosk Corp. has current assets of $4.5 million and current liabilities of $3.6 million. The current ratio is 1.25, and the quick ratio is 0.75. How much does Kiosk have invested in inventory (in millions)?