Table 3
Snark Enterprises, Inc.
Balance Sheets
2011 2012
Cash $1,000 $?
Accounts receivable 8,000 9,000
Inventories 4,000 7,000
Land 10,000 10,000
Other fixed assets 5,000 5,500
Accumulated depreciation (1,600) (2,000)
Total assets $26,400 $?
Accounts payable $4,200 $ 7,000
Bonds 4,000 4,000
Common stock 15,000 16,000
Retained earnings 3,200 3,800
Total debt and equity $26,400 $?
Snark Enterprises, Inc.
Income Statement
Sales $44,900
Cost of goods sold (22,000)
Gross profit $12,900
Operating expenses (10,000)
Depreciation (400)
EBIT $2,500
Interest expense (500)
EBT $2,000
Taxes (1,000)
Net Income $1,000
Based on the information contained in Table 3, what was the total amount of Snark Enterprise's common stock dividend for 2012?
A) $0
B) $400
C) $600
D) Cannot be determined with available information
Based on the information contained in Table 3, what is Snark Enterprise's gross profit margin in 2012.
A) 5.6%
B) 4.5%
C) 29.7%
D) 2.2%
Which of the following best represents operating income?
A) Income after financing activities
B) Earnings before interest and taxes
C) Income from capital gains
D) Income from discontinued operations
Which of the following best represents the stream of income that is available to stockholders?
A) Net profit after tax
B) Earnings before interest, taxes and dividends
C) Gross profit
D) Operating profit
Which of the following is NOT included in operating income?
A) Cost of goods sold
B) Sales
C) Taxes
D) Operating expenses
