Scranton Shipyards has $8.0 million in total invested operating capital, and its WACC is 10%. Scranton has the following income statement: Sales$10.0 millionOperating costs6.0 millionOperating income (EBIT)$ 4.0 millionInterest expense2.0 millionEarnings before taxes (EBT)$ 2.0 millionTaxes (40%)0.8 millionNet income$ 1.2 millionWhat is Scranton's EVA? Answer options are provided in whole dollar.
A. $1,840,000
B. $2,000,000
C. $1,600,000
D. $1,520,000
E. $1,440,000
Answer: C
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Answer the following statements true (T) or false (F)
1. In focusing on what’s best for the group as a whole, Utilitarianism discounts the worth of the individual. 2. Care appears to be a universal value. 3. According to the Categorical Imperative, acts can be judged as moral or immoral based on their consequences. 4. Justice as Fairness theory balances freedom and liberty. 5. Justice as Fairness theory protects the intrinsic value of individuals.
One of the weaknesses of the direct write-off method is that it
A) understates accounts receivable on the balance sheet B) violates the matching principle C) is too difficult to use for many companies D) is based on estimates
Receipts from cash sales of $1,000 were recorded incorrectly in the journal as $10,000 . This item would be included on the bank reconciliation as a(n) ________ the balance per ________
a. addition to; bank statement b. deduction from; depositor's records c. addition to; depositor's records d. deduction from; bank statement
Under the UCC, a court can find that a contract exists even though the court cannot determine
exactly when the contract came into existence. Indicate whether the statement is true or false