Willton Bros. obtains from Marbowe Manufacturing a line of credit of $100,000, of which Willton initially uses $27,000 for purchase of inventory. Marbowe may only have a security interest in the inventory that covers the initial $27,000 advance
a. True
b. False
Indicate whether the statement is true or false
False
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According to the Fisher hypothesis, an increase in the expected inflation rate should lead to ____ in the nominal interest rate and ____ in the expected real interest rate.
A. an increase; a decrease B. an increase; no change C. an increase; an increase D. a decrease; a decrease
The buying center consists of key decision makers from both the buying organization and the supplier
Indicate whether the statement is true or false
The internal rate of return is a less meaningful measure of an investment's performance than holding period return if the holding period is other than 1 year
Indicate whether the statement is true or false.
Robichau Inc. reported the following results from last year's operations: Sales$6,300,000Variable expenses 4,930,000Contribution margin 1,370,000Fixed expenses 803,000Net operating income$567,000Average operating assets$3,000,000?At the beginning of this year, the company has a $900,000 investment opportunity with the following characteristics: Sales$1,530,000 Contribution margin ratio 30% of salesFixed expenses$306,000 ?The company's minimum required rate of return is 20%.?If the company pursues the investment opportunity, this year's combined residual income for the entire company will be closest to:
A. $720,000 B. ($17,100) C. ($60,000) D. $776,100