DOWNLOADgTHEgTestgBankgforgFinancegApplicationsgandgTheoryg4thgEditiongCorn
ett
Chapterg02gRev
ewinggFinancialgStatements
MultiplegChoicegQuestions
1. Whichgfinancialgstatementgreportsgagfirm'sgassets,gliabilities,gandgequitygatgagparticulargpointgingtime?
A. balancegsheet
B. incomegstatement
C. statementgofgretainedgearnings
D. statementgofgcashgflows
2. Whichgfinancialgstatementgshowsgthegtotalgrevenuesgthatgagfirmgearnsgandgthegtotalgexpensesgthegfirmgincursgtoggenerateg
thosegrevenuesgovergagspecificgperiodgofgtime–generallygonegyear?
A. balancegsheet
B. incomegstatement
C. statementgofgretainedgearnings
D. statementgofgcashgflows
3. Whichgfinancialgstatementgreportsgthegamountsgofgcashgthatgthegfirmggeneratedgandgdistributedgduringgagparticulargtimegperiod?
A. balancegsheet
B. incomegstatement
C. statementgofgretainedgearnings
D. statementgofgcashgflows
4. Whichgfinancialgstatementgreconcilesgnetgincomegearnedgduringgaggivengperiodgandganygcashgdividendsgpaidgwithingthatgp
eriodgusinggthegchangegingretainedgearningsgbetweengthegbeginninggandgendgofgthegperiod?
A. balancegsheet
B. incomegstatement
C. statementgofgretainedgearnings
D. statementgofgcashgflows
5. Ongwhichgofgthegfourgmajorgfinancialgstatementsgwouldgyougfindgthegcommongstockgandgpaid-ingsurplus?
A. balancegsheet
B. incomegstatement
C. statementgofgcashgflows
D. statementgofgretainedgearnings
6. Ongwhichgofgthegfourgmajorgfinancialgstatementsgwouldgyougfindgthegincreaseginginventory?
A. balancegsheet
B. incomegstatement
C. statementgofgcashgflows
D. statementgofgretainedgearnings
2-1
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7. Ongwhichgofgthegfourgmajorgfinancialgstatementsgwouldgyougfindgnetgplantgandgequipment?
A. balancegsheet
B. incomegstatement
C. statementgofgcashgflows
D. statementgofgretainedgearnings
8. Financialgstatementsgofgpubliclygtradedgfirmsgcangbegfoundgingagnumbergofgplaces.gWhichgofgthegfollowinggisgNOTgang
optiongforgfindinggpubliclygtradedgfirms'gfinancialgstatements?
A. Facebook
B. agfirm'sgwebsite
C. SecuritiesgandgExchangegCommission'sg(SEC)gwebsite
D. websitesgsuchgasgfinance.yahoo.com
9. Forgwhichgofgthegfollowinggwouldgonegexpectgthegbookgvaluegofgthegassetgtogdiffergwidelygfromgitsgmarketgvalue?
A. cash
B. accountsgreceivable
C. inventory
D. fixedgassets
10. Commongstockholders'gcalculatinggequitygdividedgbygnumbergofgsharesgofgcommongstockgoutstandinggisgthegformulagfor
A. earningsgpergshareg(EPS).
B. dividendsgpergshareg(DPS).
C. bookgvaluegpergshareg(BVPS).
D. marketgvaluegpergshareg(MVPS).
11. Whengagfirmgaltersgitsgcapitalgstructuregtogincludegmoregorglessgdebtg(and,gingturn,glessgorgmoregequity),gitgimpactsgwhichg
ofgthegfollowing?
A. thegresidualgcashgflowsgavailablegforgstockholders
B. thegnumbergofgsharesgofgstockgoutstanding
C. thegearningsgpergshareg(EPS)
D. allgofgthesegchoicesgaregcorrect.
12. Thisgisgthegamountgofgadditionalgtaxesgagfirmgmustgpaygoutgforgeverygadditionalgdollargofgtaxablegincomegitgearns.
A. averagegtaxgrate
B. marginalgtaxgrate
C. progressivegtaxgsystem
D. earningsgbeforegtax
13. Angequity-financedgfirmgwill
A. paygmoregingincomegtaxesgthangagdebt-financedgfirm.
B. payglessgingincomegtaxesgthangagdebt-financedgfirm.
C. paygthegsamegingincomegtaxesgasgagdebt-financegfirm.
D. notgpayganygincomegtaxes.
14. Deferredgtaxesgoccurgwhengagcompanygpostponesgtaxesgongprofitsgpertaininggto
A. taxgyearsgtheygaregundergangauditgbygthegInternalgRevenuegService.
B. fundsgtheyghavegnotgcollectedgbecausegtheygusegthegaccrualgmethodgofgaccounting.
C. aglossgtheygintendgtogcarrygbackgorgcarrygforwardgongtheirgincomegtaxgreturns.
D. agparticulargperiodgasgtheygendgupgpostponinggpartgofgtheirgtaxgliabilitygongthisgyear'sgprofitsgtogfuturegyears.
2-2
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ett
15. Netgoperatinggprofitgaftergtaxesg(NOPAT)gisgdefinedgasgwhichgofgthegfollowing?
A. netgprofitgagfirmgearnsgbeforegtaxes,gbutgafterganygfinancinggcosts
B. netgprofitgagfirmgearnsgaftergtaxes,gandgafterganygfinancinggcost
C. netgprofitgagfirmgearnsgaftergtaxes,gbutgbeforeganygfinancinggcosts
D. netgprofitgagfirmgearnsgbeforegtaxes,gandgbeforeganygfinancinggcost
16. Thisgisgcashgflowgavailablegforgpaymentsgtogstockholdersgandgdebtgholdersgofgagfirmgaftergthegfirmghasgmadeginvestme
ntsgingassetsgnecessarygtogsustaingthegongoinggoperationsgofgthegfirm.
A. netgincomegavailablegtogcommongstockholders
B. cashgflowgfromgoperations
C. netgcashgflow
D. freegcashgflow
17. Whichgofgthegfollowinggactivitiesgresultgingangincreasegingagfirm'sgcash?
A. decreasegfixedgassets
B. decreasegaccountsgpayable
C. paygdividends
D. repurchasegofgcommongstock
18. Thesegaregcashginflowsgandgoutflowsgassociatedgwithgbuyinggandgsellinggofgfixedgorgotherglong-termgassets.
A. cashgflowsgfromgoperations
B. cashgflowsgfromginvestinggactivities
C. cashgflowsgfromgfinancinggactivities
D. netgchangegingcashgandgcashgequivalents
19. Ifgagcompanygreportsgaglargegamountgofgnetgincomegongitsgincomegstatementgduringgagyear,gthegfirmgwillghave
A. positivegcashgflow.
B. negativegcashgflow.
C. zerogcashgflow.
D. allgofgthesegchoicesgaregcorrect.
20. Freegcashgflowgisgdefinedgas
A. cashgflowsgavailablegforgpaymentsgtogstockholdersgofgagfirmgaftergthegfirmghasgmadegpaymentsgtogallgothersgwithgc
laimsgagainstgit.
B. cashgflowsgavailablegforgpaymentsgtogstockholdersgandgdebtgholdersgofgagfirmgaftergthegfirmghasgmadegpaymentsgnece
ssarygtogvendors.
C. cashgflowsgavailablegforgpaymentsgtogstockholdersgandgdebtgholdersgofgagfirmgaftergthegfirmghasgmadeginvestmentsging
assetsgnecessarygtogsustaingthegongoinggoperationsgofgthegfirm.
D. cashgflowsgavailablegforgpaymentsgtogstockholdersgandgdebtgholdersgofgagfirmgthatgwouldgbegtax-freegtogthegrecipients.
21. ThegSarbanes-
OxleygActgrequiresgpublicgcompaniesgtogensuregwhichgofgthegfollowinggindividualsghavegconsiderablegexperienc
egapplyingggenerallygacceptedgaccountinggprinciplesg(GAAP)gforgfinancialgstatements?
A. externalgauditors
B. internalgauditors
C. chiefgfinancialgofficers
D. corporategboards'gauditgcommittees
2-3
Copyrightg©g2018gMcGraw-HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofgMcGraw-
HillgEducation.
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ett
22. YougaregevaluatinggthegbalancegsheetgforgCampusgCorporation.gFromgthegbalancegsheetgyougfindgthegfollowinggbalances:
gcashgandgmarketablegsecuritiesg=g$400,000,gaccountsgreceivableg=g$200,000,ginventoryg=g$100,000,gaccruedgwagesgandg
taxesg=
$10,000,gaccountsgpayableg=g$300,000,gandgnotesgpayableg=g$600,000.gWhatgisgCampus'sgnetgworkinggcapital?
A. –$210,000
B. $700,000
C. $910,000
D. $1,610,000
23. JackgandgJillgCorporation'sgyear-
endg2018gbalancegsheetglistsgcurrentgassetsgofg$250,000,gfixedgassetsgofg$800,000,gcurrentgliabilitiesgofg$195,000,gand
glong-termgdebtgofg$300,000.gWhatgisgJackgandgJill'sgtotalgstockholders'gequity?
A. $495,000
B. $555,000
C. $1,050,000
D. Theregisgnotgenoughginformationgtogcalculategtotalgstockholders'gequity.
24. Bullseye,gInc.'sg2018gincomegstatementglistsgthegfollowinggincomegandgexpenses:gEBITg=g$900,000,ginterestgexpenseg=
$85,000,gandgnetgincomeg=g$570,000.gWhatgaregtheg2018gtaxesgreportedgongthegincomegstatement?
A. $245,000
B. $330,000
C. $815,000
D. Theregisgnotgenoughginformationgtogcalculateg2018gtaxes.
25. ConsidergagfirmgwithgangEBITgofg$500,000.gThegfirmgfinancesgitsgassetsgwithg$2,000,000gdebtg(costingg6gpercent)gandg5
0,000gsharesgofgstockgsellinggatg$20.00gpergshare.gTogreducegthegfirm'sgriskgassociatedgwithgthisgfinancialgleverage,gthegfi
rmgisgconsideringgreducinggitsgdebtgbyg$1,000,000gbygsellinggangadditionalg50,000gsharesgofgstock.gThegfirmgisgingtheg40
gpercentgtaxgbracket.gThegchangegingcapitalgstructuregwillghavegnogeffectgongthegoperationsgofgthegfirm.gThus,gEBITgwillg
remaing$500,000.gWhatgisgthegchangegingthegfirm'sgEPSgfromgthisgchangegingcapitalgstructure?
A. decreasegEPSgbyg$1.68
B. decreasegEPSgbyg$1.92
C. decreasegEPSgbyg$3.20
D. increasegEPSgbyg$0.72
26. ConsidergagfirmgwithgangEBITgofg$5,000,000.gThegfirmgfinancesgitsgassetsgwithg$20,000,000gdebtg(costingg5gpercent)gandg
70,000gsharesgofgstockgsellinggatg$50.00gpergshare.gTogreducegthegfirm'sgriskgassociatedgwithgthisgfinancialgleverage,gthegfi
rmgisgconsideringgreducinggitsgdebtgbyg$5,000,000gbygsellinggangadditionalg100,000gsharesgofgstock.gThegfirmgisgingtheg40
gpercentgtaxgbracket.gThegchangegingcapitalgstructuregwillghavegnogeffectgongthegoperationsgofgthegfirm.gThus,gEBITgwillgr
emaing$5,000,000.gWhatgisgthegchangegingthegfirm'sgEPSgfromgthisgchangegingcapitalgstructure?
A. decreasegEPSgbyg$9.29
B. decreasegEPSgbyg$18.70
C. decreasegEPSgbyg$19.29
D. increasegEPSgbyg$2.14
27. Barnyard,gInc.'sg2018gincomegstatementglistsgthegfollowinggincomegandgexpenses:gEBITg=g$500,000,ginterestgexpenseg=
$45,000,gandgtaxesg=g$152,000.gBarnyard'sghasgnogpreferredgstockgoutstandinggandg200,000gsharesgofgcommongstockgoutstand
ing.gWhatgaregitsg2018gearningsgpergshare?
A. $2.50
B. $2.275
C. $1.74
D. $1.515
2-4
Copyrightg©g2018gMcGraw-HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofgMcGraw-
HillgEducation.
mynursytest.st
ore
ett
Chapterg02gRev
ewinggFinancialgStatements
MultiplegChoicegQuestions
1. Whichgfinancialgstatementgreportsgagfirm'sgassets,gliabilities,gandgequitygatgagparticulargpointgingtime?
A. balancegsheet
B. incomegstatement
C. statementgofgretainedgearnings
D. statementgofgcashgflows
2. Whichgfinancialgstatementgshowsgthegtotalgrevenuesgthatgagfirmgearnsgandgthegtotalgexpensesgthegfirmgincursgtoggenerateg
thosegrevenuesgovergagspecificgperiodgofgtime–generallygonegyear?
A. balancegsheet
B. incomegstatement
C. statementgofgretainedgearnings
D. statementgofgcashgflows
3. Whichgfinancialgstatementgreportsgthegamountsgofgcashgthatgthegfirmggeneratedgandgdistributedgduringgagparticulargtimegperiod?
A. balancegsheet
B. incomegstatement
C. statementgofgretainedgearnings
D. statementgofgcashgflows
4. Whichgfinancialgstatementgreconcilesgnetgincomegearnedgduringgaggivengperiodgandganygcashgdividendsgpaidgwithingthatgp
eriodgusinggthegchangegingretainedgearningsgbetweengthegbeginninggandgendgofgthegperiod?
A. balancegsheet
B. incomegstatement
C. statementgofgretainedgearnings
D. statementgofgcashgflows
5. Ongwhichgofgthegfourgmajorgfinancialgstatementsgwouldgyougfindgthegcommongstockgandgpaid-ingsurplus?
A. balancegsheet
B. incomegstatement
C. statementgofgcashgflows
D. statementgofgretainedgearnings
6. Ongwhichgofgthegfourgmajorgfinancialgstatementsgwouldgyougfindgthegincreaseginginventory?
A. balancegsheet
B. incomegstatement
C. statementgofgcashgflows
D. statementgofgretainedgearnings
2-1
Copyrightg©g2018gMcGraw-HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofgMcGraw-
HillgEducation.
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ore
,DOWNLOADgTHEgTestgBankgforgFinancegApplicationsgandgTheoryg4thgEditiongCorn
ett
7. Ongwhichgofgthegfourgmajorgfinancialgstatementsgwouldgyougfindgnetgplantgandgequipment?
A. balancegsheet
B. incomegstatement
C. statementgofgcashgflows
D. statementgofgretainedgearnings
8. Financialgstatementsgofgpubliclygtradedgfirmsgcangbegfoundgingagnumbergofgplaces.gWhichgofgthegfollowinggisgNOTgang
optiongforgfindinggpubliclygtradedgfirms'gfinancialgstatements?
A. Facebook
B. agfirm'sgwebsite
C. SecuritiesgandgExchangegCommission'sg(SEC)gwebsite
D. websitesgsuchgasgfinance.yahoo.com
9. Forgwhichgofgthegfollowinggwouldgonegexpectgthegbookgvaluegofgthegassetgtogdiffergwidelygfromgitsgmarketgvalue?
A. cash
B. accountsgreceivable
C. inventory
D. fixedgassets
10. Commongstockholders'gcalculatinggequitygdividedgbygnumbergofgsharesgofgcommongstockgoutstandinggisgthegformulagfor
A. earningsgpergshareg(EPS).
B. dividendsgpergshareg(DPS).
C. bookgvaluegpergshareg(BVPS).
D. marketgvaluegpergshareg(MVPS).
11. Whengagfirmgaltersgitsgcapitalgstructuregtogincludegmoregorglessgdebtg(and,gingturn,glessgorgmoregequity),gitgimpactsgwhichg
ofgthegfollowing?
A. thegresidualgcashgflowsgavailablegforgstockholders
B. thegnumbergofgsharesgofgstockgoutstanding
C. thegearningsgpergshareg(EPS)
D. allgofgthesegchoicesgaregcorrect.
12. Thisgisgthegamountgofgadditionalgtaxesgagfirmgmustgpaygoutgforgeverygadditionalgdollargofgtaxablegincomegitgearns.
A. averagegtaxgrate
B. marginalgtaxgrate
C. progressivegtaxgsystem
D. earningsgbeforegtax
13. Angequity-financedgfirmgwill
A. paygmoregingincomegtaxesgthangagdebt-financedgfirm.
B. payglessgingincomegtaxesgthangagdebt-financedgfirm.
C. paygthegsamegingincomegtaxesgasgagdebt-financegfirm.
D. notgpayganygincomegtaxes.
14. Deferredgtaxesgoccurgwhengagcompanygpostponesgtaxesgongprofitsgpertaininggto
A. taxgyearsgtheygaregundergangauditgbygthegInternalgRevenuegService.
B. fundsgtheyghavegnotgcollectedgbecausegtheygusegthegaccrualgmethodgofgaccounting.
C. aglossgtheygintendgtogcarrygbackgorgcarrygforwardgongtheirgincomegtaxgreturns.
D. agparticulargperiodgasgtheygendgupgpostponinggpartgofgtheirgtaxgliabilitygongthisgyear'sgprofitsgtogfuturegyears.
2-2
Copyrightg©g2018gMcGraw-HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofgMcGraw-
HillgEducation.
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ore
,DOWNLOADgTHEgTestgBankgforgFinancegApplicationsgandgTheoryg4thgEditiongCorn
ett
15. Netgoperatinggprofitgaftergtaxesg(NOPAT)gisgdefinedgasgwhichgofgthegfollowing?
A. netgprofitgagfirmgearnsgbeforegtaxes,gbutgafterganygfinancinggcosts
B. netgprofitgagfirmgearnsgaftergtaxes,gandgafterganygfinancinggcost
C. netgprofitgagfirmgearnsgaftergtaxes,gbutgbeforeganygfinancinggcosts
D. netgprofitgagfirmgearnsgbeforegtaxes,gandgbeforeganygfinancinggcost
16. Thisgisgcashgflowgavailablegforgpaymentsgtogstockholdersgandgdebtgholdersgofgagfirmgaftergthegfirmghasgmadeginvestme
ntsgingassetsgnecessarygtogsustaingthegongoinggoperationsgofgthegfirm.
A. netgincomegavailablegtogcommongstockholders
B. cashgflowgfromgoperations
C. netgcashgflow
D. freegcashgflow
17. Whichgofgthegfollowinggactivitiesgresultgingangincreasegingagfirm'sgcash?
A. decreasegfixedgassets
B. decreasegaccountsgpayable
C. paygdividends
D. repurchasegofgcommongstock
18. Thesegaregcashginflowsgandgoutflowsgassociatedgwithgbuyinggandgsellinggofgfixedgorgotherglong-termgassets.
A. cashgflowsgfromgoperations
B. cashgflowsgfromginvestinggactivities
C. cashgflowsgfromgfinancinggactivities
D. netgchangegingcashgandgcashgequivalents
19. Ifgagcompanygreportsgaglargegamountgofgnetgincomegongitsgincomegstatementgduringgagyear,gthegfirmgwillghave
A. positivegcashgflow.
B. negativegcashgflow.
C. zerogcashgflow.
D. allgofgthesegchoicesgaregcorrect.
20. Freegcashgflowgisgdefinedgas
A. cashgflowsgavailablegforgpaymentsgtogstockholdersgofgagfirmgaftergthegfirmghasgmadegpaymentsgtogallgothersgwithgc
laimsgagainstgit.
B. cashgflowsgavailablegforgpaymentsgtogstockholdersgandgdebtgholdersgofgagfirmgaftergthegfirmghasgmadegpaymentsgnece
ssarygtogvendors.
C. cashgflowsgavailablegforgpaymentsgtogstockholdersgandgdebtgholdersgofgagfirmgaftergthegfirmghasgmadeginvestmentsging
assetsgnecessarygtogsustaingthegongoinggoperationsgofgthegfirm.
D. cashgflowsgavailablegforgpaymentsgtogstockholdersgandgdebtgholdersgofgagfirmgthatgwouldgbegtax-freegtogthegrecipients.
21. ThegSarbanes-
OxleygActgrequiresgpublicgcompaniesgtogensuregwhichgofgthegfollowinggindividualsghavegconsiderablegexperienc
egapplyingggenerallygacceptedgaccountinggprinciplesg(GAAP)gforgfinancialgstatements?
A. externalgauditors
B. internalgauditors
C. chiefgfinancialgofficers
D. corporategboards'gauditgcommittees
2-3
Copyrightg©g2018gMcGraw-HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofgMcGraw-
HillgEducation.
mynursytest.st
ore
, DOWNLOADgTHEgTestgBankgforgFinancegApplicationsgandgTheoryg4thgEditiongCorn
ett
22. YougaregevaluatinggthegbalancegsheetgforgCampusgCorporation.gFromgthegbalancegsheetgyougfindgthegfollowinggbalances:
gcashgandgmarketablegsecuritiesg=g$400,000,gaccountsgreceivableg=g$200,000,ginventoryg=g$100,000,gaccruedgwagesgandg
taxesg=
$10,000,gaccountsgpayableg=g$300,000,gandgnotesgpayableg=g$600,000.gWhatgisgCampus'sgnetgworkinggcapital?
A. –$210,000
B. $700,000
C. $910,000
D. $1,610,000
23. JackgandgJillgCorporation'sgyear-
endg2018gbalancegsheetglistsgcurrentgassetsgofg$250,000,gfixedgassetsgofg$800,000,gcurrentgliabilitiesgofg$195,000,gand
glong-termgdebtgofg$300,000.gWhatgisgJackgandgJill'sgtotalgstockholders'gequity?
A. $495,000
B. $555,000
C. $1,050,000
D. Theregisgnotgenoughginformationgtogcalculategtotalgstockholders'gequity.
24. Bullseye,gInc.'sg2018gincomegstatementglistsgthegfollowinggincomegandgexpenses:gEBITg=g$900,000,ginterestgexpenseg=
$85,000,gandgnetgincomeg=g$570,000.gWhatgaregtheg2018gtaxesgreportedgongthegincomegstatement?
A. $245,000
B. $330,000
C. $815,000
D. Theregisgnotgenoughginformationgtogcalculateg2018gtaxes.
25. ConsidergagfirmgwithgangEBITgofg$500,000.gThegfirmgfinancesgitsgassetsgwithg$2,000,000gdebtg(costingg6gpercent)gandg5
0,000gsharesgofgstockgsellinggatg$20.00gpergshare.gTogreducegthegfirm'sgriskgassociatedgwithgthisgfinancialgleverage,gthegfi
rmgisgconsideringgreducinggitsgdebtgbyg$1,000,000gbygsellinggangadditionalg50,000gsharesgofgstock.gThegfirmgisgingtheg40
gpercentgtaxgbracket.gThegchangegingcapitalgstructuregwillghavegnogeffectgongthegoperationsgofgthegfirm.gThus,gEBITgwillg
remaing$500,000.gWhatgisgthegchangegingthegfirm'sgEPSgfromgthisgchangegingcapitalgstructure?
A. decreasegEPSgbyg$1.68
B. decreasegEPSgbyg$1.92
C. decreasegEPSgbyg$3.20
D. increasegEPSgbyg$0.72
26. ConsidergagfirmgwithgangEBITgofg$5,000,000.gThegfirmgfinancesgitsgassetsgwithg$20,000,000gdebtg(costingg5gpercent)gandg
70,000gsharesgofgstockgsellinggatg$50.00gpergshare.gTogreducegthegfirm'sgriskgassociatedgwithgthisgfinancialgleverage,gthegfi
rmgisgconsideringgreducinggitsgdebtgbyg$5,000,000gbygsellinggangadditionalg100,000gsharesgofgstock.gThegfirmgisgingtheg40
gpercentgtaxgbracket.gThegchangegingcapitalgstructuregwillghavegnogeffectgongthegoperationsgofgthegfirm.gThus,gEBITgwillgr
emaing$5,000,000.gWhatgisgthegchangegingthegfirm'sgEPSgfromgthisgchangegingcapitalgstructure?
A. decreasegEPSgbyg$9.29
B. decreasegEPSgbyg$18.70
C. decreasegEPSgbyg$19.29
D. increasegEPSgbyg$2.14
27. Barnyard,gInc.'sg2018gincomegstatementglistsgthegfollowinggincomegandgexpenses:gEBITg=g$500,000,ginterestgexpenseg=
$45,000,gandgtaxesg=g$152,000.gBarnyard'sghasgnogpreferredgstockgoutstandinggandg200,000gsharesgofgcommongstockgoutstand
ing.gWhatgaregitsg2018gearningsgpergshare?
A. $2.50
B. $2.275
C. $1.74
D. $1.515
2-4
Copyrightg©g2018gMcGraw-HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofgMcGraw-
HillgEducation.
mynursytest.st
ore
