If a firm's ratio of "current assets to current liabilities" is lower than the industry average and its ratio of "long-term debt to shareholder's equity" is lower than the industry average, it would most likely indicate that the firm:

• A.has more current liabilities than the industry average.
• B.has more leased assets than the industry average.
• C.will be less profitable than the industry average.

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Which of the following statements is not correct?

• A.The sum of the absolute frequency is the total number of observations.
• B.Frequency distributions do not work with ratio scales.
• C.Each observation is contained in one and only one category.

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Cash dividends of $48,500 were declared. The beginning and ending balance of the Cash Dividends
Payable account was $8,000 and $10,500, respectively. On the statement of cash flows, the cash dividend activity would be reported as which of the following?

• A.Financing activity of $46,000
• B.Financing activity of $48,500
• C.Investing activity of $48,500

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All of the following are reported on the income statement net of taxes except
I). extraordinary items.
II). accounting changes.
III). operating income.

• A.I and II.
• B.III only.
• C.None of these.

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A firm's ROE equals 47%. Its financial leverage (assets/equity) equals 1.8 and its asset turnover is 0.8.
If the firm's total net sales equal $1.35 million, its net income equals ________.

• A.$352,500
• B.$282,000
• C.$440,625

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