1. During 2016, XYZ Corporation reported net income of $200 and paid dividends of $60. XYZ's December 31, 2015 statement of financial position reported the following items: common stock = $220, capital surplus = $180, retained earnings = $300. What is the value of the retained earnings account for the December 31, 2016 statement of financial position?
a. $540
b. $160
c. $460
d. $400
e. $440
2. You need to borrow $18,000 to buy a truck. The current loan rate is 9% compounded monthly and you want to pay the loan off in equal monthly payments over five years. What is the size of your monthly payment?
a. $381.56
b. $378.03
c. $373.65
d. $382.45
e. $455.66
3. Determining when a supplier should be paid is a working capital decision.
True
False
4. A firm has an ROE of 27.5% and an ROA of 9%. What is the internal growth rate if the firm has a 40% dividend payout ratio?
a. 7.76%
b. 8.81%
c. 5.71%
d. 8.46%
e. 4.71%