1. During 2016, XYZ Corporation reported net income of $260 and paid dividends of $100. XYZ's December 31, 2015 statement of financial position reported the following items: common stock = $220, capital surplus = $180, retained earnings = $400. What is the value of the retained earnings account for the December 31, 2016 statement of financial position?
Select one: a. $500 b. $560 c. $400 d. $160 e. $340
2. You have the following data for the ABC. What is ABC's return on assets (ROA)? Return on equity = 15%; Earnings before taxes = $30,000; Total asset turnover = 1; Profit margin = 5%; Tax rate = 35%.
Select one: a. 5.4% b. 6.0% c. 5.0% d. 3.6% e. 3.9%.
3. A firm has an ROA of 10%, sales of $50, and total assets of $120. What is its profit margin?
Select one: a. 6.4% b. 8.0% c. 24.0% d. 16.0% e. 6.0%
4. What is the present value of $1,050 payments received at the beginning of each year for the next 10 years? Assume an interest rate of 5.8%.
Select one: a. $7,861.29 b. $8,254.36 c. $8,492.64 d. $8,069.13 e. $8,093.62
5. Which of the following accounts does not relate to working capital management decisions?
Select one: a. Long-term debt. b. Short-term debt. c. Accounts receivable. d. Inventory. e. Accounts payable.