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Mock$-$Exam.pdf

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$3M$ Corporation had net income of $$250,000$ and paid dividends to common stockholders of $$50,000$ in $2023.$ The weighted average number of shares outstanding in $2023$ was $50,000$ shares. $3M$ Corporation's common stock is selling for $$40$ per share on the New York Stock Exchange. The price$-$earnings ratio $($P$/$E$)$ is:

a$.2$ times.

b$.8$ times.

c$.10$ times.

d$.5$ times.

$17.$ A mixed cost contains

a$.$ a variable element and a fixed element.

b$.$ both selling and administrative costs.

c$.$ both retailing and manufacturing costs.

d$.$ both operating and nonoperating costs.

$18.$ All of the financial statements are for a period of time except the

a$.$ income statement.

b$.$ owner's equity statement.

c$.$ balance sheet.

d$.$ statement of cash flows.

$19.$ A company has total fixed costs of $$180,000$ and a contribution margin ratio of $20\%.$ The total sales necessary to break even are

a$.$ $$720,000.$

b$.$ $$900,000.$

c$.$ $$225,000.$

d$.$ $$216,000.$

$20.$ Budgeting is usually most closely associated with which management function?

a$.$ Planning.

b$.$ Directing.

c$.$ Motivating.

d$.$ Controlling.

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