problem) PDQ Corp. has sales of $4,000,000; the firm's cost of goods sold is $2,500,000; and its total operating expenses are $600,000. The firm's interest expense is $250,000, and the corporate tax rate is 40%. What is PDQ's net income?
(a)$288,000 (b)$350,000 (c)$377,000 (d)$390,000
problem) Li Retailing reported the following items for the current year: Sales = $3,000,000; Cost of Goods Sold = $1,500,000; Depreciation Expense = $170,000; Administrative Expenses = $150,000; Interest Expense = $30,000; Marketing Expenses = $80,000; and Taxes = $300,000. Li's net profit margin is equal to
(a)25.67%. (b)35.67%. (c)36.67%. (d)50.00%.
problem) What was the average annual rate of return on long-term government bonds (30-Year Treasury Bonds) during the period 1984 to 2008?
(a)4.14% (b)5.88% (c)6.89% (d)7.82%
problem) SRC has a debt ratio of .4, current liabilities of $18,000, and total assets of $100,000. What is the level of SRC's total liabilities?
(a)$22,000 (b)$40,000 (c)$58,000 (d)$63,934
problem) A firm paid dividends of $10,000, paid interest of $20,000, reduced debt principal outstanding (paid off debt) in the amount of $100,000, and sold new stock for $150,000. What was the firm's cash flow from financing activities?
(a) +$20,000 ($20,000 flowed into the firm) (b) -$20,000 ($20,000 flowed out of the firm)
(c) +$280,000 ($280,000 flowed into the firm) (d)-$280,000 ($280,000 flowed out of the firm)
problem) Baron, Inc. has total current assets of $1,200,000; long-term debt of $600,000; total current liabilities of $500,000; and long-term assets of $800,000. How much is the firm's net working capital?
(a) $1,000,000 (b)$900,000 (c)$600,000 (d) $700,000