M. Camus bought 1000 shares of Oran Co. at $60 per share and 100 shares of Gitane Co. at $40 per share. Both stocks are now worth $50 per share. Both companies have offered to repurchase their shares
If M. Camus would like to have about $5,000 in cash, should he sell the Oran or Gitane?
A) Oran, because a tax deduction on the loss will leave him with more than $5,000 and taxes on the capital gain from Gitane would leave him with less than $5,000.
B) Gitane because the price is rising.
C) He should sell equal amounts of each so that his gains cancel out his losses.
D) there is no difference, he makes $5,000 either way.
Answer: A
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Accounts payable $ 30,000 Accounts receivable 65,000 Accrued liabilities 7,000 Cash 25,000 Intangible assets 40,000 Inventory 72,000 Long-term investments 100,000 Long-term liabilities 75,000 Marketable securities 36,000 Notes payable (short-term) 20,000 Property, plant, and equipment 625,000 Prepaid expenses 2,000 Based on the above data, what is the amount of quick assets?
A) $198,000 B) $126,000 C) $90,000 D) $61,000
All of the following are reasons why using financial statement ratios is easier than analyzing the financial statement numbers themselves, except:
a. any unexpected changes in ratios that do not make sense are attributable to fraud. b. ratios involve small, easily understood numbers that are sensitive to changes in key variables. c. benchmarks for most ratios are well known. d. All of the choices are true of ratios.
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