1. Given the following information: sales = $525; costs = $400; tax rate = 34%. Assuming costs run at a constant percentage of sales, if sales rise by 10% next year, what will net income be?
a. $33.00
b. $90.75
c. $3.30
d. $72.60
e. $66.00
2. The financial statement summarizing the value of a firm's current assets on a particular date is the balance sheet.
True
False
3. If you borrow $5,000, you likely prefer 6% compounded daily to 6% compounded annually.
True
False
4. A firm has an ROA of 9%, sales of $50, and total assets of $120. What is its profit margin?
a. 14.4%
b. 7.2%
c. 21.6%
d. 6.4%
e. 6.0%