A large number of competitors are present in a market during the introductory stage of a product life cycle
Indicate whether the statement is true or false
FALSE
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When analyzing leases, the risks of ownership include the risk of interest rate increases, the risk of technological change and other factors that would affect the lessor's ability to lease or sell the asset
Indicate whether the statement is true or false
Which of the following is not true regarding predetermined overhead rates?
A) They are useful in estimating product costs before actual overhead amounts are known with certainty. B) They can normalize seasonal and random fluctuations in overhead costs so that product costs will be consistent throughout the year. C) With their use, it is no longer necessary to be able to identify a cost driver. D) With their use, too much or too little overhead may end up being allocated to a product or job.
Which of the following claims are satisfied first after dissolution?
A) creditors B) creditor-partners C) capital contributions D) profits.
Tweedle Corporation's most recent balance sheet and income statement appear below:Balance SheetDecember 31, Year 2 and Year 1(in thousands of dollars)AssetsYear 2Year 1Current assets: Cash$140 $130 Accounts receivable, net 200 210 Inventory 150 180 Prepaid expenses 20 20 Total current assets 510 540 Plant and equipment, net 950 910 Total assets$ 1,460 $ 1,450 Liabilities and Stockholders' Equity Current liabilities: Accounts payable$130 $150 Accrued liabilities 70 70 Notes payable, short term 70 60 Total current liabilities 270 280 Bonds payable 170 190 Total liabilities 440 470 Stockholders' equity: Common stock, $1 par value 200 200
Additional paid-in capital 320 320 Retained earnings 500 460 Total stockholders' equity 1,020 980 Total liabilities & stockholders' equity$ 1,460 $ 1,450 Income StatementFor the Year Ended December 31, Year 2(in thousands of dollars)Sales (all on account)$1,190 Cost of goods sold 710 Gross margin 480 Selling and administrative expense 226 Net operating income 254 Interest expense 25 Net income before taxes 229 Income taxes (30%) 69 Net income$ 160 The times interest earned ratio for Year 2 is closest to: A. 10.16 B. 14.51 C. 9.16 D. 6.40