A

ssume that all balance sheet amounts represent average balance figures for a fiscal year. The company has not issued preferred stock.

Total assets: $400,000

Common stock: $50,000

Additional Paid-in Capital: $150,000

Retained Earnings: $35,000

Sales: $620,000

Net income: $83,000

What is the company's asset turnover ratio?

	a.	4.82
	b.	7.47
	c.	1.55
	d.	0.65

A corporation purchases 30,000 shares of its own $10 par common stock for $25 per share, recording it at cost. What will be the effect on total stockholders equity?

	a.	Increase by $300,000.
	b.	Decrease by $750,000.
	c.	Increase by $750,000.
	d.	Decrease by $300,000.