Retained earnings is the amount of cash that has been generated by the firm through its operations but has not been paid out to stockholders as dividends. Retained earnings are kept in cash or near cash accounts, and thus these cash accounts, when added together, will always be equal to the total retained earnings of the firm.
Answer the following statement true (T) or false (F)
False
The amount of retained earnings as reported on the balance sheet does not represent cash and is not available for the payment of dividends or anything else. See 2-2: Financial Statements
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Which of the following sections of the statement of cash flows include activities that increase and decrease long-term assets?
A) the financing activities section B) the operating activities section C) the investing activities section D) the non-cash investing and financing section
Assume that the risk-free rate is 5%. Which of the following statements is CORRECT?
A. If a stock's beta doubled, its required return under the CAPM would also double. B. If a stock's beta doubled, its required return under the CAPM would more than double. C. If a stock's beta were 1.0, its required return under the CAPM would be 5%. D. If a stock's beta were less than 1.0, its required return under the CAPM would be less than 5%. E. If a stock has a negative beta, its required return under the CAPM would be less than 5%.
The following information about the Zhang Company is available on December 31:Advertising expense………………………………$ 28,800Depreciation of factory equipment………………42,320Depreciation of office equipment…………….… 10,800Direct labor……………………………………..142,600Factory utilities……………………………….....35,650Interest expense………………………………....6,650Inventories, January 1:? Raw materials…………………………………3,450 Work in process………………………………17,250 Finished goods…………………………...……35,600Inventories, December 31:? Raw materials……………………………..…2,300 Work in
process…………………………..…20,700 Finished goods………………………………31,050Raw materials purchases………………………132,450Rent on factory building………………………41,400Indirect labor…………………………………..51,750Sales commissions……………………………..16,500The company applies overhead on the basis of 125% of direct labor costs. Calculate the amount of over- or underapplied overhead. What will be an ideal response?
Michelle Buck, CEO of the Hershey Company has hired you as a consultant to assess her diversified company's business units for cross-business competitive advantage potential. Your assessment would not normally involve ascertaining the extent to which Hershey's business units
A. have value chain match-ups that offer opportunities to transfer skills or technology or intellectual capital from one business to another. B. have value chain match-ups that offer opportunities to combine the performance of related value chain activities and reduce costs. C. have value chain match-ups that offer opportunities to create new competitive capabilities or to leverage existing resources. D. are making maximum use of the parent company's competitive advantages. E. present opportunities to share use of a well-respected brand name.