Data from Lheureux Corporation's most recent balance sheet and the company's income statement appear below: Year 2Year 1Total assets$1,440 $1,480 Total liabilities$400 $450 Total stockholders' equity$1,040 $1,030 Income StatementFor the Year Ended December 31, Year 2(in thousands of dollars)Sales (all on account)$1,280 Cost of goods sold 850 Gross margin 430 Selling and administrative expense 355 Net operating income 75 Interest expense 18 Net income before taxes 57 Income taxes (30%) 17 Net income$40 The debt-to-equity ratio at the end of Year 2 is closest to:
A. 0.38
B. 0.16
C. 0.43
D. 0.13
Answer: A
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_____________, more commonly known as the cause-and-effect relationship, is a type of inductive reasoning.
a. Cognitive dissonance b. Causal reasoning c. Analogical reasoning d. Deductive reasoning
Sybil, Inc. uses a predetermined overhead allocation rate to allocate manufacturing overhead costs to jobs. The company recently completed Job 300X. This job used 11 machine hours and 5 direct labor hours. The predetermined overhead allocation rate is calculated to be $43 per machine hour. What is the amount of manufacturing overhead allocated to Job 300X using machine hours as the allocation base?
A) $473 B) $215 C) $688 D) $258
Mary agrees to sew Georgia's prom dress for $50 plus costs. Georgia decides that she wants ruffles around the neck and calls Mary who says it will now cost $60 . When Mary finishes the dress (with ruffles), Georgia must pay:
a. $50, since that is the original agreement. b. $50, since a modification must be in writing. c. $60, since the modified agreement is supported by additional consideration. d. $60, since any subsequent agreement is enforceable.
All independent contractors are agents, but not all agents are independent contractors
Indicate whether the statement is true or false