B for most companies the market value of the stock

b. For most companies, the market value of the stock equals the book value of the stock as reported on the balance
sheet.
c. The balance sheet for a given year tells us how much money the company earned during that year.
d. The balance sheet for a given year is designed to give us an idea of what happened to the firm during that year.
e. A typical industrial company's balance sheet lists the firm's assets that will be converted to cash first, and then
goes on down to list the firm's longest lived assets last.
Consider the balance sheet of Wilkes Industries as shown below. Because Wilkes has $800,000 of retained earnings,
the company would be able to pay cash to buy an asset with a cost of $200,000.
Cash
$ 50,000
Accounts payable
$ 100,000
Inventory
200,000
Accruals 100,000
Accounts receivable 250,000 Total CL $ 200,000
Total CA $ 500,000 Debt
200,000
Net fixed assets
$ 900,000
Common stock
200,000
_________ Retained earnings 800,000
Total assets $1,400,000Total L & E $1,400,000
Danielle's Sushi Shop last year had (1) a negative net cash flow from operations, (2) a negative free cash flow, and
(3) an increase in cash as reported on its balance sheet. Which of the following factors could explain this situation?

Which of the following statements is CORRECT?
Which of the following would be most likely to lead to higher interest rates on all debt securities in the economy?
a. The Federal Reserve uses monetary policy in an attempt to stimulate the economy.
b. The economy moves from a boom to a recession.
c. Households start saving a larger percentage of their income.
d. Corporations step up their expansion plans and thus increase their demand for capital.
e. The level of inflation begins to decline.