The amount of a corporation's retained earnings that has been restricted/appropriated should be reported in the notes to the financial statements
Indicate whether the statement is true or false
True
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Which sentence expresses numbers correctly?? A) ?The company replaced 5 twenty-watt incandescent bulbs with economical fluorescent bulbs
B) ?We require at least 150, 20-page journals for the conference. C) Andrew stored his research files on one 3-gigabyte drive.
The inventory turnover for an industry is 6 (every two months) but Slow Corp. turns over its inventory 4 times a years (every three months). If annual sales are $1,000,000 and the interest cost to carry inventory is 12 percent, what is the potential savings in interest expense if the firm achieves the industry for the turnover of its inventory??
What will be an ideal response?
Refer to the income statement above. Assuming that Luther has no convertible bonds outstanding, then for the year ending December 31, 2006 Luther's diluted earnings per share are closest to ________
Luther Corporation Consolidated Income Statement Year ended December 31 (in $millions) 2006 2005 Total sales 610.1 578.3 Cost of sales -500.2 -481.9 Gross profit 109.9 96.4 Selling, general, and administrative expenses -40.5 -39.0 Research and development -24.6 -22.8 Depreciation and amortization -3.6 -3.3 Operating income 41.2 31.3 Other income -- -- Earnings before interest and taxes (EBIT) 41.2 31.3 Interest income (expense) -25.1 -15.8 Pretax income 16.1 15.5 Taxes -5.5 -5.3 Net income 10.6 10.2 Price per share $16 $15 Sharing outstanding (millions) 10.0 8.1 Stock options outstanding (millions) 0.3 0.2 Stockholders' Equity 126.6 63.6 Total Liabilities and Stockholders' Equity 533.1 386.7 A) $1.03 B) $0.51 C) $0.82 D) $1.23
Which of the following statements is true?
A. Financial leverage should not be considered when a firm borrows money. B. Under the right circumstances, the use of borrowed money can improve a firm's return on owners' equity. C. There is no good reason for a firm to borrow money when it has cash to finance expansion. D. The use of borrowed money always reduces a firm's return on owners' equity. E. Return on owners' equity is not an important financial calculation.