the impact of management when you have completed your exam and reviewed your answers 338667

Student ID: 21822007 Exam: 061684RR THE IMPACT OF MANAGEMENT Exam: 061684RR THE IMPACT OF MANAGEMENT When you have completed your exam and reviewed your answers, click Submit Exam. Answers will not be recorded until you hit Submit Exam. If you need to exit before completing the exam, click Cancel Exam. Questions 1 to 20: Select the best answer to each question. Note that a question and its answers may be split across a page break, so be sure that you have seen the entire question and all the answers before choosing an answer. Use the following information to answer this question. The most recent balance sheet and income statement of Teramoto Corporation appear below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Cash and cash equivalents $43 $35 Accounts receivable 53 59 Inventory 73 69 Plant and equipment 582 490 Less accumulated depreciation 301 286 Total assets $450 $367 Liabilities and stockholders’ equity Accounts payable $57 $48 Wages payable 21 18 Taxes payable 15 13 Bonds payable 21 20 Deferred taxes 20 21 Common stock 55 50 Retained earnings 261 197 Total liabilities and stockholders’ equity $450 $367 Income Statement Sales $893 Cost of good sold 587 Gross margin 306 Selling and administrative expense 189 Net operating income 117 Income taxes 35 Net income $82 1. The net cash provided by (used by) investing activities for the year was A. ($92). B. $92. C. ($77). D. $77. 2. Ignore income taxes in this problem.) Purvell Company has just acquired a new machine. Data on the machine follow: Purchase cost $50,000 Annual cost savings $15,000 Life of the machine 8 years The company uses straight line depreciation and a $5,000 salvage value. (The company considers salvage value in making depreciation deductions.) Assume cash flows occur uniformly throughout a year. The simple rate of return would be closest to A. 30.0%….