We use cookies to enhance your experience on our website. By continuing to use our website, you are agreeing to our use of cookies. You can change your cookie settings at any time. Find out more

Engineering Economic Analysis, Third Edition: Chapter 17

Instructions: For each question, click on the radio button beside your answer. When you have completed the entire quiz, click the “Submit my answers” button at the bottom of the page to receive your results.

Consider the following balance sheet for a software company:
Marketable securities$100,000
Accounts receivable$110,000
Prepaid taxes and insurance$15,000
Manufacturing plant at cost$700,000
Less accumulated depreciation$90,000
Net fixed assets$800,000
Liabilities and shareholders’ equity
Notes payable$70,000
Accounts payable$80,000
Income taxes payable$65,000
Long-term mortgage bonds$500,000
Preferred stock, 5%, $50 par value (1,500 shares)$75,000
Common stock, $20 par value (15,000 shares)$300,000
Capital surplus$300,000
Retained earnings$80,000

Question 1:

a) $700,000
b) $1,165,000
c) $465,000
d) $765,000

Question 2:

a) $215,000
b) $715,000
c) $1,470,000
d) $615,000

Question 3:

a) $200,000
b) $350,000
c) $250,000
d) $680,000

Question 4:

a) $375,000
b) $755,000
c) $400,000
d) $550,000

Question 5:

a) $30
b) $50
c) $60
d) $40

Question 6:

a) $40
b) $60
c) $20
d) $25