A company had net cash flows from operations of $341,000, net income of $286,000 and average total assets of $1,850,000. The cash flow on total assets ratio equals:
A. 83.9%
B. 542.5%
C. 15.5%
D. 646.9%
E. 18.4%
Answer: E
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An ad for Athleta active wear shows a woman in a complex yoga pose and states: "If your body is your temple, build it one piece at a time." This ad uses the ________ execution style
A) slice of life B) lifestyle C) fantasy D) scientific evidence E) personality symbol
Which of the following is NOT included as a tax-deductible expense?
A) Dividend expenses B) Marketing expenses C) Depreciation expenses D) Cost of goods sold
The nature of swap contracts is usually based on the best practices suggested by the ________,
A) Options Clearing Corporation B) Chicago Board Options Exchange C) International Swap and Derivatives Association D) Securities Exchange Commission
Westland College has a telephone system that is in poor condition. The system either can be overhauled or replaced with a new system. The following data have been gathered concerning these two alternatives (Ignore income taxes.): Present SystemProposed New SystemPurchase cost new$250,000 $300,000 Accumulated depreciation$240,000 - Overhaul costs needed now$230,000 - Annual cash operating costs$180,000 $170,000 Working capital required - $200,000?See separate Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided.Westland College uses a 10% discount rate and the total cost approach to capital budgeting analysis. Both alternatives are expected to have a useful life of eight years. The working capital would be released for
use elsewhere when the project is completed.The working capital would be released for use elsewhere when the project is completed.The net present value of the alternative of overhauling the present system is closest to: A. $(1,194,036) B. $(1,279,316) C. $801,284 D. $(1,119,316)