When supplier should be paid is working capital decision

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Reference no: EM132071600

1. During 2016, XYZ Corporation reported net income of $200 and paid dividends of $60. XYZ's December 31, 2015 statement of financial position reported the following items: common stock = $220, capital surplus = $180, retained earnings = $300. What is the value of the retained earnings account for the December 31, 2016 statement of financial position?

a. $540

b. $160

c. $460

d. $400

e. $440

2. You need to borrow $18,000 to buy a truck. The current loan rate is 9% compounded monthly and you want to pay the loan off in equal monthly payments over five years. What is the size of your monthly payment?

a. $381.56

b. $378.03

c. $373.65

d. $382.45

e. $455.66

3. Determining when a supplier should be paid is a working capital decision.

True

False

4. A firm has an ROE of 27.5% and an ROA of 9%. What is the internal growth rate if the firm has a 40% dividend payout ratio?

a. 7.76%

b. 8.81%

c. 5.71%

d. 8.46%

e. 4.71%

Reference no: EM132071600

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