If your liquid assets equal $15,000 and your current debts equal $50,000, your liquidity ratio is:
A. 30%.
B. 70%.
C. 143%.
D. 233%.
E. 333%.
Answer: A
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A realized gain or loss on the sale of an available-for-sale debt security is determined by comparing
A) the amortized cost of the security with the proceeds from the sale. B) the original cost of the security with the proceeds from the sale. C) the market value at the latest balance sheet date with the proceeds from the sale. D) the original cost with the security's carrying value.
Mountain Recreation, Inc. is considering a new product line. The company currently manufactures
several lines of snow skiing apparel. The new products, insulated ski bikinis, are expected to generate sales of $1.2 million per year for the next five years. They expect that during this five-year period, they will lose about $150,000 each year in sales on their existing lines of longer ski pants. The new line will require no additional equipment or space in the plant and can be produced in the same manner as the apparel products. The new project will, however, require that the company spend an additional $50,000 per year on insurance in case customers sue for frostbite. Also, a new marketing director would be hired to oversee the line at $75,000 per year in salary and benefits. Because of the different construction of the bikinis, an increase in inventory of $9,000 would be required initially. If the marginal tax rate is 35%, compute the incremental after-tax cash flows for years 1-5. A) $634,500 per year B) $537,500 per year C) $625,000 per year D) $601,250 per year
There are no resale limitations on Regulation D offerings
Indicate whether the statement is true or false
An approach that enters and processes data into the accounting system as soon as source documents are available is called:
A. Web communications. B. Date storage. C. Online processing. D. Batch processing. E. Computer programming.