Use the following balance sheet and income statement to calculate the firm's current ratio (current assets/ current liabilities): Income Statement Balance Sheet 255,000
Assets: 9000 Sales (all credit) 153,000
Cost of Goods Sold 45000
Cash 26000 Depreciation 3000
Accounts Receivable 19,500 Operating Expenses 9000
Inventories 49000 Interest Expense
Land 70000 Taxes 15,300
Other Fixed Assets
Liabilities & Owners' Equity
Accounts Payable 12000
Long Term Debt 53,400
Common Stock 2000
Paid in Capital 80000
Retained Earnings 26,100
a) 0.76
b) 4.5
c) 4.1
d) 7.8
e) 2.5

Maker-bot corporation has 10,000 shares of 10%, $90 par value, cumulative preferred stock outstanding since its inception. no dividends were declared in the first two years. if the company pays $400,000 of dividends in the third year, how much will common stockholders receive?

Suppose you win a small lottery and have the choice of two ways to be paid: you can accept the money in a lump sum or in a series of payments over time. if you pick the lump sum, you get $2,950 today. if you pick payments over time, you get three payments: $1,000 today, $1,000 1 year from today, and $1,000 2 years from today. 1) at an interest rate of 6% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 2) at an interest rate of 9% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 3) years after you win the lottery, a friend in another country calls to ask your advice. by wild coincidence, she has just won another lottery with the same payout schemes. she must make a quick decision about whether to collect her money under the lump sum or the payments over time. what is the best advice to give your friend? a) the lump sum is always better. b) the payments over time are always better. c) it will depend on the interest rate; advise her to get a calculator. d) none of these answers is good advice.

What would not cause duff beer’s production possibilities curve to expand in the short run? a. improved manufacturing technology b. additional resources c. increased demand