In comparison to a baseline, productivity is higher if ______.
A. for given input, output is higher
B. for given output, input is higher
C. the cost of production increases with volume of production
D. there is an increase in demand with an increase in volume of production
A. for given input, output is higher
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Which of the following types of distribution involves severely limiting the number of channel intermediaries?
A) exclusive B) selective C) intensive D) aggressive E) retail
Partners can at any time unanimously agree to dissolve a partnership.
Answer the following statement true (T) or false (F)
Fashion Trends, Inc., a regional fashion apparel retailer, wants to prepare a 2018 Pro Forma Income Statement and a 2018 Balance Sheet using the following 2017 and 2016 data:
The firm has forecasted sales of $7,100,000 and a tax rate of 40% for 2018. Cost of goods sold and S,G&A expense in 2018 are expected to be the average of their two-year proportion of sales. On the balance sheet, accounts receivable, inventory, accounts payable, and accrued expenses are expected to be at the two-year average of the proportion of these items in relation to sales. The firm has planned an investment of $500,000 in fixed assets in 2018, with an estimated life of 10 years and no salvage value. These fixed assets will be depreciated using the straight line depreciation method. All other financial statement items are expected to remain constant in 2018. Assume the firm pays 4% interest on short-term debt and 7% on long term debt. Assume that the dividends in 2018 will be the same as those paid in 2017.
a) What is the Discretionary Financing Needed (DFN) in 2018? Is this a surplus or deficit?
b) DFN will be absorbed by long-term debt. Set up an iterative worksheet to eliminate it.
c) Turn off iteration, and use the Scenario Manager to set up three scenarios:
1. Best Case — Sales are 15% higher than expected.
2. Base Case — Sales are exactly as expected.
3. Worst Case — Sales are 15% less than expected.
What is the DFN under each scenario?
Which of the following accounts is increased with a credit?
a. Supplies b. Fees Earned c. Supplies Expense d. Dividends