1. The following information has been taken from the financial statements available for the ABC Company. Determine the net income.
Accounts Pavable $4.000
Accounts Receivable $12,000
lncome Taxes $6,000
Owner's Eouifu $75.000
Co$ of Goods Sold $42,000
Overhead Expense $10,000
Sales Revenue $80,000
a. $34,000
b. $30,000
c. $ 18,000
d. $22,000
e. $26,000
2. The initial cost of a federal highway project is $4 million. After deducting all maintenance expenses, benefits of $250,000 per year during its 20-year life have been identified. The Benefit to Cost Ratio (BCR) value at an interest rate of 6oh per year is closest to:
a. 0.12
b. 0.75
c. 0.86
d. 1.0
e. 1.36