A company reported that its bonds with a par value of $50,000 and a carrying value of $57,000 are retired for $60,000 cash, resulting in a loss of $3,000. The amount to be reported under cash flows from financing activities is:
A. $7,000.
B. $(3,000).
C. $(57,000).
D. $(60,000).
E. $(7,000).
Answer: D
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Answer the following statements true (T) or false (F)
1. A common challenge to strategy implementation is resistance by people within the organization. 2. One of the ways to keep a strategic plan on track is to make it very comprehensive, covering as many scenarios for the future as you can. 3. The primary purpose of competitive intelligence is to challenge the thinking of employees to make them better equipped to produce novel ideas for business. 4. SWOT analysis helps management to develop a realistic understanding of the organization in relation to internal and external environments.
When Christy developed her marketing plan for her new store, she kept in mind that conditions can change, so her plan would also change. This demonstrates the importance of staying strategic, but also staying on top of the tactical, in the tips for a successful marketing planning experience.
Answer the following statement true (T) or false (F)
ABC, Inc., is a small clothing manufacturer that produces shirts and pants using two resources: sewing machine hours and cutting machine hours. The production manager can schedule up to 240 hours of sewing machine time and up to 150 hour cutting machine time. Production of one shirt requires 3 hours of sewing time and 1 hour of cutting time. Each pair of pants requires 2 hours of sewing time and 1.5 hours of cutting time. Each shirt yields a profit of $5, and each pair of pants generates a $6 profit. The objective is to maximize profits. Determine cutting time constraint for the LP formulation. Let X1 = Number of shirts to be produced, X2 = Number of pairs of pants to be produced.
a. 3X1 + 2X2 ? 240 b. X1 + 1.5X2 ? 150 c. 3X1 + 2X2 ? 150 d. X1 + 1.5X2 ? 240
Which of the following statements about the guaranteed purchase option is true?
A) An insured usually has 24 months to exercise an option. B) The option cannot be exercised until the insured reaches age 40. C) The amount of life insurance that can be purchased at each option is limited to 10 percent of the face amount of the basic policy. D) The additional coverage can be purchased without demonstrating insurability.