1. A computer company has $2,800,000 in research and development costs. Before accounting for these costs, the net income of the company is $2,000,000. What is the amount of net income or loss after these R & D costs are accounted for?
a) $800,000 loss
b) $2,000,000 net income
c) $0
d) Cannot be determined from the information provided.
2. Mehring Company reported net sales of $540,000, net income of $72,000, beginning total assets of $240,000, and ending total assets of $360,000. What was the company's asset turnover?
a) 2.3 times
b) 0.6 times
c) 1.8 times
d) 1.5 times
3.
All of the following would be reported in the Intangible assets section of the balance sheet except
a) Research and development.
b) Patents.
c) Franchises.
d) Goodwill.