The tax shield on interest is calculated by multiplying the interest rate paid on debt by the principal
amount of the debt and the firm's marginal tax rate.
Indicate whether the statement is true or false
TRUE
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If a change in accounts payable was added back to net income on the statement of cash flows prepared using the indirect method, then the amount owed to suppliers during the period had decreased
a. True b. False Indicate whether the statement is true or false
In an ethical decision-making workshop, what activity should a facilitator introduce after introducing the hypothetical ethical dilemma?
a. Have participants vote by secret ballot on the best solution, then tally the votes and share the results with the workshop. b. Have participants break out into small groups and discuss possible solutions. c. Have participants write down a single sentence describing what they think to be the best possible course of action. d. Have participants write answers to the seven systematic rational ethical decision- making process questions.
The formula for calculating the amount of applied overhead to a product is:
A) Predetermined overhead rate x Estimated units of cost driver B) Predetermined overhead rate x Actual overhead costs C) Predetermined overhead rate x Actual units of cost driver D) Predetermined overhead rate x Estimated overhead costs
In 2012, Wingen Inc sold 325,000 units at $8 each. Sales volume is expected to increase by 15 percent in 2013 while the price of each unit is expected to decrease by 15 percent. The expected sales revenue for 2013 is:
A) $ 373,750 B) $2,541,500 C) $1,878,500 D) $2,990,000