ABC Inc. was incorporated two years ago by issuing 5,000 shares of common stock at $400 each and borrowing $240,000 from a bank on a long-term note.
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ABC Inc. was incorporated two years ago by issuing 5,000 shares of

common stock at $400 each and borrowing $240,000 from a bank on a long-term note. Last year, ABC reported net income of $40,000 and paid a cash dividend of $1,800. Last year the company also borrowed an additional $320,000 from the bank. What was total assets on ABC's balance sheet at the end of the year last year?
Select one:
a. None of these
b. $2,600,000
c. $2,558,200
d. $2,598,200


On December 31, 2017, Johnson Inc. has total liabilities of $520,000 and total equity of $446,000. The company needs to raise additional funds through debt and equity. The company will issue 1,000 shares of common stock at $9 per share and in addition it intends to borrow as much as it can from Bank of Morganville. Bank of Morganville requires a maximum debt-to-asset ratio of 0.8. 
What is the maximum additional amount that Johnson Inc. can borrow after the additional stock is issued?
Select one:
a. $1,264,000
b. $1,300,000
c. $260,000
d. $0 (the company already exceeds the 0.8 debt-to-asset ratio)


Paper Inc. sells markers. During January 2018, its inventory records for one brand of its markers were as follows:


Quantity Price per market Total
Beginning Inventory  16 $1.21 = $19.36
January 6 Purchase  6  $0.88 =$5.28
January 10 Sale  9 N/A
January 15 Purchase  8  $0.91 =$7.28
January 20 Sale  3 N/A
January 25 Purchase      9 $0.85 =$7.65


Determine the cost of goods sold using the perpetual weighted average cost method.
Select one:
a. $12.96
b. $13.20
c. $13.58
d. $12.18

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