The most useful information derived from a cost-volume-profit chart is the
a. amount of sales revenue needed to cover enterprise variable costs.
b. amount of sales revenue needed to cover enterprise fixed costs.
c. relationship among revenues, variable costs, and fixed costs at various levels of activity.
d. volume or output level at which the enterprise breaks even.
C
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Inventory is an example of a nonmonetary asset
Indicate whether the statement is true or false
Upon review of Susan's Statement of Cash Flows, the following was noted: Cash flows from operating activities $75,000 Cash flows from investing activities (135,000) Cash flows from financing activities 125,000 From this information, the most likely explanation is that Susan is
A) using cash from operations and selling long-term assets to pay back debt. B) using cash from operations and borrowing to purchase long-term assets. C) using its profits to expand growth. D) using cash from investors to provide for operations.
Break even analysis is used to determine the best level of output.
Answer the following statement true (T) or false (F)
Narrow Falls Lumber has total assets of $913,600, total debt of $424,500, net sales of $848,600, and net income of $94,000. The tax rate is 21 percent and the dividend payout ratio is 30 percent. What is the firm's sustainable growth rate?
A) 13.97 percent B) 14.46 percent C) 15.54 percent D) 12.63 percent E) 14.91 percent