1. DuPont Analysis Last year, PJ's Ice Cream Parlors, Inc. reported an ROE = 12.4%. The firm's debt ratio was 46%, sales were $39 million, and the capital intensity ratio was .89 times. What is the net income for PJ's last year? (Do not round intermediate steps.)  

2. Statement of Retained Earnings Z, Corp. began the year 2008 with $1.4 million in retained earnings. The firm earned net income of $5.4 million in 2008 and paid $2.96 million to its common stockholders. What is the year-end 2008 balance in retained earnings for Z?  

3. Statement of Cash Flows In 2008, Lower Case Productions had cash flows from investing activities of +$80,000 and cash flows from financing activities of +$86,000. The balance in the firm's cash account was $108,000 at the beginning of 2008 and $79,000 at the end of the year. What was Lower Case's cash flow from operations for 2008? 

4. The practice generally known as double taxation is due to: 

A. shareholders' dividends being taxed at both the federal and state levels. 

B. corporate income being taxed at both the federal and state levels. 

C. interest on shareholders' dividends being taxed as income. 

D. corporate incomes being taxed at the corporate level, then again at the shareholder level when corporate profits are paid out as dividends. 

5. Which of the following is an example of aligning managers' personal interests with those of the owners? 

A. Allow the managers to have as many perks as they request. 

B. Pay the managers high salaries. 

C. Offer the managers an equity stake in the firm. 

D. Trust the managers' actions as they will always act in the owners' best interest