A corporation has annual sales of 18 million, total assets of 4 million, a debt ratio of 40,
depreciation expense of 200,000, and a tax rate of 40. The corporation's total stockholders' equity
is equal to
A) 2,800,000. B) 2,400,000. C) 1,800,000. D) 5,600,000.
Question 2
In relation to the balance sheet, an income statement shows
A)
net worth, not the period's savings or dissavings.
B)
the period's savings or dissavings, not net worth.
C)
activities at a point in time, not over a period of time.
D)
financial position, not financial performance.
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