Fi_1 - $90 million) in 2003. It forecasts that the tax rate...

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6.  Fine Breads Inc. paid out $26,000 common dividends during 2005, and it ended the year with $150,000 of retained earnings. The prior year's retained earnings were $145,500. What was the firm's 2005 net income? A)  $34,000 B)  $33,000 C)  $31,000 D)  $30,000 E)  $32,000 Points Earned:  5.0/5.0  Correct Answer(s): C 7.  Ozark Industries reported net income of $75 million in 2005. The company's corporate tax rate was 40% and its interest expense was $25 million. The company had $500 million in sales and its cost of goods sold was $350 million. Ozark's goal is for its net income to increase by 20% (to
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Unformatted text preview: $90 million) in 2003. It forecasts that the tax rate will remain at 40%, interest expense will increase by 40%, and cost of goods sold will remain at 70% of sales. What level of sales (to the closest million) will Ozark have to produce in 2003 in order to meet its goal for net income? A) $600 million B) $583 million C) $617 million D) $550 million E) $650 million Points Earned: 0.0/5.0 Correct Answer(s): C...
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This note was uploaded on 11/04/2009 for the course BUS FIN 2100 taught by Professor Shmidl during the Spring '09 term at Laramie County Community College.

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