What is the profitability index of a project that has an initial cash outflow of $600, an inflow of $250 for the next 3 years and a cost of capital of 10 percent?
A) 0.667
B) 2.036
C) 1.036
D) 2.739
C
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Mary Tappin, an assistant Vice President at Galaxy Toys, was disturbed to find on her desk a memo from her boss, Gary Resnick, to the controller of the company. The memo appears below:GALAXY TOYS INTERNAL MEMOSept 15To: Harry Wilson, ControllerFm: Gary Resnick, Executive Vice PresidentAs you know, we won't start recording many sales until October when stores start accepting shipments from us for the Christmas season. Meanwhile, we are producing flat-out and are building up our finished goods inventories so that we will be ready to ship next month.Unfortunately, we are in a bind right now since it looks like the net income for the quarter ending on Sept 30 is going to be pretty awful. This may get us in trouble with the bank since they always review the quarterly financial reports and may
call in our loan if they don't like what they see. Is there any possibility that we could change the classification of some of our period costs to product costs-such as the rent on the finished goods warehouse?Please let me know as soon as possible. The President is pushing for results.Mary didn't know what to do about the memo. It wasn't intended for her, but its contents were alarming.Required:a. Why has Gary Resnick suggested reclassifying some period costs as product costs?b. Why do you think Mary was alarmed about the memo? What will be an ideal response?
What federal statute was enacted by the U.S. Congress to protect trade secrets?
A. the Sarbanes-Oxley Act B. the Lanham Act C. the Telecommunication Act D. the Economic Espionage Act
Accrued expenses at the end of one accounting period are expected to result in cash payments in a future period.
Answer the following statement true (T) or false (F)
If Casey assigns her rights to receive income from rental property to Errol, then Errol will legally acquire any rights to the income previously held by Casey
a. True b. False Indicate whether the statement is true or false