1. Kaye's Incorporation has a DSO of 32 days and its annual sales is $2,500,000. What is its accounts payable balance? Assume that it uses a 365-day year.

       $250,000.00.

       $219,178.08.

       $305,872.60.

       $320,332.16.

2. Over the years, Hampton Industries' stockholders have provided $40,000,000 of capital when they purchased new issues of stock and allowed management to retain some of the firm's earnings. The firm now has 1,000,000 shares of common stock outstanding, and the shares sell at a price of $52 per share. What is Hampton's MVA(market value added)?

       $52,000,000.

       $40,000,000.

       $12,000,000.

       $92,000,000.

3. Patterson Brothers has operating income for the year of $2,800,000 and a 40% tax rate. Its total invested capital is $15,000,000 and its after-tax cost of capital is 10%. What is the firm's EVA(economic value added)?

       $180,000.

       $1,680,000.

       $1,500,000.

       $1,300,000.

4. P&G paid out $10 million in total common dividends and reported $85 million of retained earnings at year-end. The prior year's retained earnings were $70 million. What was the net income? Assume that all dividends declared were actually paid.

       $10 million.

       $25 million.

       $15 million.

       $20 million.