Using the present value tables, compute the present value of $30,000 discounted back 6 periods at 7%.

$24,500

$18,400

$23,700

$19,980

2.

A Bonds Payable is reported on the balance sheet as the balance in Bonds Payable plus any discount or minus any premium.

True

False

3.

Under the direct method of cash flow, which of the following isnotincluded in the statement of cash flows?

Changes in accounts receivable

Changes in accounts payable

Changes in inventories

Changes in amortization

4.

A company uses the indirect method to prepare the statement of cash flows. It presents the following data on its financial statements: *Relates solely to the acquisition of inventory What will appear in the operating activities section related to salary payable?

The increase of $2,000 will be added to cost of goods sold.

The increase of $2,000 will be added to net income.

The increase of $2,000 will be subtracted from cost of goods sold.

The increase of $2,000 will be subtracted from net income.

5.

To follow is selected information about The Boston Company for the current year and prior year. What is the current year's net income percentage (as would be found on a vertical analysis of the income statement for the current year)?

8.60%

9.80%

9.00%

108.60%

6.

The Bedford Corporation reported the following income statement and balance sheet amounts and additional information for the end of the current year. Inventory and prepaid expenses account for $30,000 of the current year's current assets. Average inventory for the current year is $36,250. Average net accounts receivable for the current year is $45,000. There are 35,000 shares of common stock outstanding. Total dividends paid during the current year were $17,000. The market price per share of common stock is $20. What is the dividend yield for the current year?

59.29%

54.06%

37.49%

2.43%