Asset and liability balances are transferred from the adjusted trial balance to the income statement.
Answer the following statement true (T) or false (F)
False
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In a just-in-time environment, more quality control inspectors are needed because of the high speed of production
Indicate whether the statement is true or false
A company has sales of $725,600 and cost of goods sold of $290,600. Its gross profit (loss) equals:
A. $(435,000). B. $290,600. C. $725,600. D. $1,016,200. E. $435,000.
Peter Drucker believes that those who have more education should be held to higher standards
Indicate whether the statement is true or false
Climax Motors Inc is currently all equity financed, but it is considering a leveraged capital structure, details of which are presented in the table below (under the column labeled 'Proposed')
Under the proposed capital structure, Climax will use all of the new debt to repurchase (and cancel) shares. Assume that taxes are zero. Assume that all of net income is paid out as a dividend in one year's time. Assume that the debt is perpetual with an annual coupon rate of 6%. Wolfgang von Trips owns 25,000 shares. Under each capital structure, how much does Wolfgang receive in dividends at the end of each year? Assume that Wolfgang has the same number of shares under both structures. Capital Structure Capital Structure Current Proposed EBIT $120,000 $120,000 Debt, D $0 $450,000 Cost of Debt, kd N/A 6% Shares Outstanding 100,000 70,000 Stock Price $15.00 $15.00 A) Current: $30,000; Proposed: $30,000 B) Current: $30,000; Proposed: $23,250 C) Current: $30,000; Proposed: $42,857 D) Current: $30,000; Proposed: $33,214 E) Current: $30,000; Proposed: $27,684