1) Use the information below to answer the following question: Common stock, $1 par, 100,000 shares authorized, ____________ shares issued $ 40,000 Additional paid-in capital 160,000 Retained earnings 100,000 Treasury stock (1,000 shares at cost) (6,000) Total shareholders' equity $294,000 How many shares of common stock are outstanding?
2) Beau Brentley earned $60,000 from his job at Bridgestone Tires. He had 15% of his gross pay withheld for federal income taxes, 6.2% withheld for FICA Social Security taxes, and 1.45% withheld for Medicare taxes. What was Beau's net pay?
3) To prepare the statement of cash flows using the indirect method ________ net income.
A. cash paid for dividends is added to
B. a purchase of a machine is subtracted from
C. a decrease in inventory is subtracted from
D. a decrease in accounts payable is subtracted from
4) In December 2011, Homer Simpson worked for Springfield Power and earned $5,000. Federal income tax withholding is 15%. The FICA rate is 6.2% and the Medicare tax is 1.45%. How much cash will Springfield Power pay the government for FICA because of Homer's December earnings?
5) When a bond sells for 102, the bond is selling at ________.
A. a premium
B. face value
C. a discount
D. par