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# 1. PDQ Corp. has sales of \$4,000,000; the firms cost of goods

1. 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? (Points : 1)
\$288,000
\$350,000
\$377,000
\$390,000

2. 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 operating profit margin is equal to (Points : 1)
25.67%
35.67%
36.67%
50.00%

3. During the period 1984 to 2008, the average yield on 3-Month U.S. Treasury bills was 4.76%, the average inflation rate was 2.97%, the average yield on 30-year Treasury bonds was 6.89%, and the average return on 30-year Aaa-Rated Corporate Bonds was 7.73%. The real risk-free short-term interest rate is (Points : 1)
1.79%.
2.13%.
2.97%.
4.76%.

4. 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? (Points : 1)
\$1,000,000
\$900,000
\$600,000
\$700,000

5. An income statement may be represented as follows: (Points : 1)
Sales - Liabilities = Profits.
Revenues - Liabilities = Net Income.
Sales - Expenses = Retained Earnings.
Sales - Expenses = Profits.

6. Maximization of shareholder wealth (Points : 1)
represents a zero sum game in which one corporation gains at the expense of others.
provides benefits to society as scarce resources are directed to their most productive use.
is not a practical goal since it cannot be measured effectively.
is achieved only if cash flows exceed accounting profits.

7. 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 tax liability? (Points : 1)
\$258,000
\$260,000
\$360,000
\$600,000

8. 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. What is PDQ's EBIT? (Points : 1)
\$850,000
\$875,000
\$900,000
\$1,300,000

9. Net working capital is equal to (Points : 1)
total assets minus total liabilities.
current assets minus total liabilities.
total operating capital minus net income.
current assets minus current liabilities.

10. Corporation B reported earnings per share of \$10. Corporation B has 100,000 shares of common stock outstanding and reported an increase in owners equity of \$400,000 for the period. Corporation B paid \$50,000 in interest expense during the period. Corporation B paid dividends per share of (Points : 1)
\$6.00.
\$5.50.
\$6.50.
\$14.003.
Hi

Welcome to JA. Do you still need this?

Regards

Linda
Customer: replied 4 years ago.
Linda,
I do still need the answers not sure how this works so let me know.
I am working on your question. Once I post the solution, you can view the solution and an accept button will appear and if you are satisfied you click accept so that I get paid. You have chosen to pay \$40 for these question.

Customer: replied 4 years ago.
Ok will stand by for the results, and thanks very much.