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1. Consider the following information for Ball crop.Selling and administrative expense$50000Depreciation expense 80000Sales 400000Interest expense 30000Cost of goods sold 150000Taxes 18550What is the operating profit for Ball Crop.?a. $71450b. $90000c. $120000d. none of the above2. Allen Lumber Company had earning after taxes of $580000 in the year 2006 with 400000 shares outstanding. On January 1 2007 the firm issued $35000 new shares. Because of the proceeds from these new shares and other operating improvement2007 earning was 25 percent higher than in 2006. Earning per share for the year 2007 was.a. $1.67b. $1.45c. approximately $1.81d. none of the above 3. GS Cookie Co. forecast cash receipt or January and February of $9000 and $10000 respectively. Cash payment of $4000 and $ 5500 are expected in these two months. GS cookie s Cash balance at the beginning of January was $5000 a level that it attempts to maintain. At the beginning of the year. GS Cookie has a $13000 balance Outstanding on its line of credit at the local bank. Based on its cash budget how much of the line of credit can GS Cookie repay by the end of February ?a. $10000b. $9000c. $4000d. None GS Cookie must increase borrowings.4. A firm s long term assets =$75000 total assets = $200000 inventory =$25000 and current liabilities =$50000a. Current ratio =0.5;quick ratio= 1.5b. Current ratio=1.0; quick ratio= 2.0c. Current ratio= 1.5;quick ratio= 2.0d. Current ratio= 2.5; quick ratio= 2.0

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