1. If me EBIT is $10,000, the interest expenses are $5,000, and the tax rate is 20%, then the net income is $4,000.

True False

2. The net income is $100, sales are $210, total assets are $510, and total equity is $300. According to the DuPont system of financial ratio analysis, ROE is about 35.33%.

True False

3. The major problem with benchmarking involves firms of different sizes making financial statements appear different due simply to the size factor that alone will cause differences in some categories found in financial statements.

True False

4. The U.S. Small Business Administration (SBA) is a government agency with three different loan programs designed to cover a wide array of businesses and their particular needs.

True False