The Income Statement:

A. Summarizes the results of a company's operations, listing income and expenses
B. Summarizes what a company owns and what it owes 
C. Lists the accounts and account numbers
D. Lists a company's assets


Answer: A

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Refer to the following selected financial information from Texas Electronics. Compute the company's working capital for Year 2.  Year 2 Year 1Cash$37,500 $36,850 Short-term investments 90,000  90,000 Accounts receivable, net 85,500  86,250 Merchandise inventory 121,000  117,000 Prepaid expenses 12,100  13,500 Plant assets 388,000  392,000 Accounts payable 113,400  111,750 Net sales 711,000  706,000 Cost of goods sold 390,000  385,500 

A. $232,700. B. $111,700. C. $147,200. D. $220,600. E. $142,700.

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Writers should never use boldface ______________

a. twice b. in a letter c. randomly d. on small words

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The parties to a franchise arrangement may be two corporations.

Answer the following statement true (T) or false (F)

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Goode Inc.'s stock has a required rate of return of 11.50%, and it sells for $29.00 per share. Goode's dividend is expected to grow at a constant rate of 7.00%. What was the last dividend, D0?

A. $0.95 B. $1.38 C. $1.37 D. $1.22 E. $1.06

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