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Top of Form
According to the depreciation rates used by the company and described in the Production Cost Report, if a company adds 50 new workstations at a cost of $250,000 each and also spends $5 million for an addition to its assembly plant to accommodate the new workstations, then its annual depreciation costs will rise by| |

| $1,750,000|
|
| $700,000|
|
| $350,000|
|
| $17,500,000|
|
| None of these------------------------------------------------- Top of Form Income Statement Data| Quarter 1(in 000s)|
Sales Revenues| $50,000|
Operating Profit| 14,400|
Net Income| $   9,555|
  |   |
Balance Sheet Data|   |
Total Current Assets| $70,000|
Total Assets| 139,000|
Total Current Liabilities| 26,000|
L-T Debt (draw against credit line)| 23,000|
Total Equity| 90,000|
  |   |
Other Financial Data|   |
Depreciation| $4,000|
Dividend payments| $2,250|
  |   |
Based on the above figures, the company’s current ratio (defined as current assets divided by current liabilities, as per the Help screen for the Comparative Financial Performance page of the GSR) is| |

| 2.69|
|
| $44,000|
|
| 5.38|
|
| 0.371|
|
| None of these|
Bottom of Form------------------------------------------------- Top of FormAssume a company’s Income Statement for a given quarter is as follows: Income Statement Data| Quarter 1(in 000s)| Sales Revenues| $50,000|

Production Costs| 26,500|
Delivery Costs| 1,600|
Marketing Costs| 8,500|
Administrative Expenses| 2,000|
  Operating Profit| 14,400|
Net Interest| 750|
Income Before Taxes| 13,650|
Taxes| 4,095|
  Net Income| $9,555|
Based on the above data, which of the following statements is false?| |
| Production costs are 53% of revenues, thus resulting in a gross profit margin (sales revenues less costs of goods sold) of 47%| |
| Delivery costs are 2.8% of revenues and represent the company’s smallest cost component| |
| Marketing costs are 17.0% of revenues|
|
| Administrative expenses are 4.0% of revenues|
|
| Net interest costs are 1.5% of revenues|
Bottom of Form------------------------------------------------- Top of Form Income Statement Data| Quarter 1(in 000s)|
Sales Revenues| $50,000|
Operating Profit| 14,400|
Net Income| $9,555|
  |   |
Balance Sheet Data|   |
Total Current Assets| $70,000|
Total Assets| 159,000|
Total Current Liabilities| 26,000|
L-T Debt (draw against credit line)| 43,000|
Total Equity| 91,400|
  |   |
Other Financial Data|   |
Depreciation| $4,000|
Dividend payments| $2,250|
  |   |
Based on the above figures, the company's capital structure (defined as the sum of total debt outstanding and total stockholder's equity) consists of what percentages of debt and equity? The percentages of total capital invested that are debt-financed and equity-financed are among the factors used to determine a company's credit rating, as explained in the Help section for the Comparative Financial Performances presented on p. 7 of the GLO-BUS Statistical Review.)| |

| 47% debt and 53% equity or 47:53.|
|
| 25% debt and 75% equity or 25:75.|
|
| 32% debt and 68% equity or 32:68.|
|
| 29% debt and 71% equity or 29:71.|
|
| None of these.|
Bottom of Form According to the cost allocation methods used in the company’s accounting system and described in the Help section for the Operations Report for any of the four geographic regions, if a company spends $5 million to advertise its camera lines in North America, assembles and ships 300,000 entry-level cameras and 200,000 multi-featured cameras to its North American dealers, derives revenues of $80 million from its sales of entry-level cameras and $120 million from the sales of its multi-featured cameras...
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