Given the Following Adjusted Tabular Summary Amounts Net Income for the Year Is:
A)$99

question 46

Multiple Choice

Given the following adjusted tabular summary amounts: $\begin{array} { l r } \text { Cash } & \$ 831 \\\text { Accounts receivable } & 1,049 \\\text { Inventory } & 1,562 \\\text { Prepaid rent } & 43 \\\text { Equipment } & 150 \\\text { Accumulated depreciation-equipment } & 26 \\\text { Accounts payable } & 41 \\\text { Unearned service revenue } & 61 \\\text { Common stock } & 103 \\\text { Retained earnings } & 3,305 \\\text { Service revenue } & 184 \\\text { Interest revenue } & 28 \\\text { Salaries and wages expense } & 80 \\\text { Travel expense } & 33\end{array}$ Net income for the year is:

• A)$99.
• B)$184.
• C)$212.
• D)$298.

Understand and apply the concepts of book value and market value per share.

Calculate required rates of return using the Capital Asset Pricing Model (CAPM).

Identify and calculate dividend growth rates based on plowback ratios and return on equity (ROE).

Understand the relationship between growth rates, required returns, and dividend payout ratios in valuing stocks.