[The following information applies to the questions displayed below.] At the end of Year 1, the following information is available for Grumpy, Happy, and Doc Companies. GrumpyHappyDocTotal Assets $2,000,000 $2,000,000 $3,000,000 Total Liabilities 1,400,000 800,000 1,800,000 Stockholders' Equity 600,000 1,200,000 1,200,000 Net Income 118,000 190,000 150,000 Which company is the most profitable from the stockholders' perspective?
A. Grumpy
B. Doc
C. Happy
D. Cannot be determined
Answer: A
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The dynamic gains from trade include all of the following EXCEPT
a. economies of large-scale production resulting in decreasing unit cost. b. increased saving and investment resulting in economic growth. c. increased competition resulting in lower prices and wider range of output. d. increasing comparative advantage leading to specialization.
Addams, Inc., is preparing its master budget for the second quarter. The following sales and production data have been forecasted:?AprilMayJuneJulyAugustUnit sales ……400500520480540Finished goods inventory on March 31: 120 unitsRaw materials inventory on March 31: 450 poundsDesired ending inventory each month:Finished goods: 30% of next month's salesRaw materials: 25% of next month's production needsNumber of pounds of raw material required per finished unit: 4 lbs.How many pounds of raw materials should be purchased in April?
What will be an ideal response?
?Lower-grade bonds offer higher returns than high-grade bonds because of:
A. ?their increase in coupon interest rate over the life of the bonds. B. their higher risk and more restricted market.? C. their maturity value being higher than the market value.? D. their attractive returns to risk-averse investors.? E. ?their tax-free returns and no capital gain tax liability.
An informal study of what information is already available in the problem area is called
A. the marketing model. B. a focus group interview. C. quantitative research. D. a situation analysis. E. qualitative research.