Suppose that Cathy's assets include an automobile worth $10,000 and a checking account with a $5,000 balance, while her liabilities include a student loan balance of $2,000 and a car loan balance of $8,000. What is her net worth?
A) $10,000
B) $8,000
C) $5,000
D) $2,000
Answer: C
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In Step 2 of breakeven analysis, plot the ______ on the vertical axis and the ______ on the horizontal axis.
a. fixed costs, variable costs b. total costs, annual production volume c. annual production volume, variable costs d. variable costs, fixed costs
Which of the following statements is CORRECT?
A. Depreciation is included in the estimate of free cash flows (FCF = EBIT(1 - T) + Depreciation - [Capital expenditures + ?NOWC]), hence depreciation is set forth on a separate line in the cash budget. B. If cash inflows from collections occur in equal daily amounts but most payments must be made on the 10th of each month, then a regular monthly cash budget will be misleading. The problem can be corrected by using a daily cash budget. C. Sound working capital policy is designed to maximize the time between cash expenditures on materials and the collection of cash on sales. D. If a firm wants to generate more cash flow from operations in the next month or two, it could change its credit policy from 2/10, net 30 to net 60. E. If a firm sells on terms of net 90, and if its sales are highly seasonal, with 80% of its sales in September, then its DSO as it is typically calculated (with sales per day = Sales for past 12 months/365) would probably be lower in October than in August.
Compute the federal unemployment tax for Julie Martin whose gross earnings are $5,700 for the first quarter. Assume a tax rate of 0.8% up to and including $7,000
a. $45.60 b. $56 c. $10.40 d. $456.00
Angel Corporation's current-year regular tax liability is $40,000. Angel is eligible for a general business credit of $45,000. The corporation will receive a $5,000 refund of federal income tax.
Answer the following statement true (T) or false (F)