Use the Following to Answer Questions

question 43

Multiple Choice

Use the following to answer questions
The Ventura Company reported total stockholders' equity of $500,000 at December 31, 2010. In addition, there were 80,000 shares of common stock and zero shares of preferred stock outstanding for the entire year. During 2010, Ventura earned net income equal to $75,000, which included deductions of $7,000 for interest and $11,000 for income taxes. Total dividends paid to common stockholders during the year were $60,000. The company's statement of cash flows showed $56,000 in net cash inflows from operating activities, and its stock was selling for $17 per share on December 31, 2010.
-The price earnings ratio at the end of 2010 was:

• A)14.2
• B)18.1
• C)22.7
• D)24.3

Identify factors influencing the preparation of a sales budget.

Understand the calculation of purchases required based on sales forecasts and inventory policies.

Learn about various components of a budget including operating, cash, merchandise purchases, and capital expenditure budgets.

Comprehend the processes involved in preparing a cash budget, including cash inflows and outflows.

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Definitions:

Cause Movement

The initiation of change in position or motion in response to external or internal stimuli.

Named

Designated or given a specific title.

Shape

The external form, contours, or outline of an object or figure.

Brachioradialis

A muscle of the forearm that flexes the forearm at the elbow.