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1. Grass Gadgets had sales of $30 million and net income of $2 million in 2008. Grass paid a dividend of $1.5 million. Assuming that their beginning balance for retained earnings was $3 million, calculate their ending balance for retained earnings. A. $3.5 million B. $3 million C. $4 million D. S2.5 million Which of the following items is part of the computation of net operating working capital for purposes of determining free cash flow? 2. A. Dividend payments B. Accounts payable C. Fixed assets D. Interest expense 3. Which of the following transactions does NOT affect the quick ratio? A. Land held for investment is sold for cash. B. Inventories are sold on a credit basis C. Inventories are sold for cash D. Equipment is purchased and is financed by a long-term debt issue. 4. An increase in the current ratio would indicate an increase in: A return on investment, B. operating income C. liquidity D. leverage