Your father's employer was just acquired, and he was given a severance payment of $365,000, which he invested at a 7.5% annual rate. He now plans to retire, and he wants to withdraw $35,000 at the end of each year, starting at the end of this year. How many years will it take to exhaust his funds, i.e., run the account down to zero?
A. 25.29
B. 21.91
C. 18.54
D. 17.28
E. 21.07
Answer: E
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Curtain Corp stands to receive a sufficient cash settlement from a law suit. Curtain needs to record this on its accounting records
a. True b. False Indicate whether the statement is true or false
Amortization of bond discount results in a(n)
a. decrease of the bonds payable account. b. decrease of stockholders' equity. c. increase of stockholders' equity. d. decrease in the cash account.
Gladstone Co. has expected sales of $326,000 for the upcoming month and its monthly break even sales are $300,000. What is the margin of safety as a percent of sales, rounded to the nearest whole percent?
A. 8%. B. 92%. C. 52%. D. 108%. E. 9%.
Tanya Inc's static budget for 10,000 units of production includes $60,000 for direct materials, $44,000 for direct labor, fixed utilities costs of $5,000, and supervisor salaries of $15,000. A flexible budget for 12,000 units of production would show:
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