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1. Assume Old.com, Inc. has 10,000 shares of stock outstanding; had Net Income o

ID: 2692377 • Letter: 1

Question

1. Assume Old.com, Inc. has 10,000 shares of stock outstanding; had Net Income of $21,000 and paid dividends of $ 12,000. What is the Company's Compute Earnings Per Share (EPS)?

a. $3.50 b. $1.20 c. $2.10 d. $5.00

2.A firm's 2012 Balance Sheet Contributed Equity (Common Stock + Paid in Surplus) account balances were $ 712,500 HIGHER that the 2011 end of year balances in the same accounts. The company paid $ 515,000 in Cash Dividends in 2012. What was the firm's Cash Flow to Shareholders for 2012?

a.$515,000 b. $-712,500 c. $1,227,500 d.$- 197,500 .

3.Principal, Inc.'s management is preparing a Statement of Cash Flows; It has determined that its Cash Flow From Operations was (+ $ 650,000); it Purchased $ 477,000 in Fixed Assets during the period; it sold Common Stock which brought in $ 223,000; and it paid off $ 50,000 in corporate Debt. By what amount did the company's Cash Balance change during the period?Answer

4.Cape May Storage's ending Inventory was $ 484,000 (which was approximately the average inventory level for the year); Cost of Goods Sold (CGS) from it current Income Statement was
$ 4,286,500; AND its Gross Profit margin was 30%. What was Cape May's Inventory Turnover ratio?Answer

a. + $ 1,300,000 b. - $ 346,000 c. + $ 346,000 d. + $ 173,000

Explanation / Answer

1 : 21000/10000 = $2.1 (c)
2 : 712500 - 515000 = 197500 (d)
3 : 650000 - 477000 +223000 - 50000 = 346000 (c)
4 : 4286500/484000 = 8.9 (a)