Discuss the key features of Section 302 of the Sarbanes-Oxley Act
Section 302 requires corporate management (including the chief executive officer [CEO]) to certify financial and other information contained in the organization's quarterly and annual reports. The rule also requires them to certify the internal controls over financial reporting. The certifying officers are required to have designed internal controls, or to have caused such controls to be designed, and to provide reasonable assurance as to the reliability of the financial reporting process. Furthermore, they must disclose any material changes in the company's internal controls that have occurred during the most recent fiscal quarter.
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Maxim Computer has a 10 percent of a $250 billion market. Maxim is the low-cost leader and realizes a 20% margin on sales, and marketing, sales, and administrative expenses equaling 10% of sales. What is Maxim's net marketing contribution?
A) $250 billion B) $25 billion C) $5 billion D) $2.5 billion E) $500 million
Blockbuster is a video rental and retail chain. Blockbuster is forecasting its financial statements for Year 3. Selected financial information for Years 1 and 2 is provided in the table
What is the interest expense for Blockbuster in Year 3? (Assume that Blockbuster's average cost of debt is 7.50%.) Selected Financial Information Blockbuster Inc ($ '000) Year 1 Year 2 Short Term Debt 31,890 162,430 Long Term Debt 1,137,256 798,300 Interest Expense 87,686 A) $70,341 B) $72,054 C) $80,667 D) $87,686 E) $135,166
The times-covered ratio, which measures the degree to which managers use debt or equity to finance ongoing operations, is a type of ________ ratio.
A. profit B. liquidity C. current D. activity E. leverage
What are the amount and character of the gain that Kate must recognize on the sale?
On December 31, Kate sells her 20% interest (with a basis of $18,000 which, of course, includes a share of partnership liabilities) in the KLM Partnership to Karl for $27,000 cash plus assumption of her $6,000 share of liabilities. On that date, the partnership has the following balance sheet:
