Jefferson City Computers has developed a forecasting model to estimate its AFN for the upcoming year. All else being equal, which of the following factors is most likely to lead to an increase of the additional funds needed (AFN)?
A. A sharp increase in its forecasted sales.
B. A sharp reduction in its forecasted sales.
C. The company reduces its dividend payout ratio.
D. The company switches its materials purchases to a supplier that sells on terms of 1/5, net 90, from a supplier whose terms are 3/15, net 35.
E. The company discovers that it has excess capacity in its fixed assets.
Answer: A
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In order for a recognition program to work they must be _____________.
A. money driven B. fair C. communicated by the CEO D. focused on accomplishing goals E. reviewed quarterly
In which of the following situations has the duty between partners NOT been breached?
A) Tom, Dick, and Harry have a partnership in a restaurant business in Winnipeg. Harry opens up a restaurant in Winnipeg as a sole proprietorship. B) Tom, Dick, and Harry have a partnership in a restaurant business in Winnipeg. Harry is the major shareholder in a corporation that sets up a restaurant in Winnipeg. C) Tom, Dick, and Harry have a partnership in a restaurant business in Winnipeg. Unknown to Tom and Dick, Harry owns 50% of the shares in the company that supplies the restaurant with its food supplies. D) Tom, Dick, and Harry have a partnership in a restaurant business in Winnipeg. Harry, unknown to the others partners, creates a catering business during the evening using the restaurant facilities. E) All situations involve a breach
Krepps Corporation produces a single product. Last year, Krepps manufactured 20,000 units and sold 15,000 units. Production costs for the year were as follows: Direct materials$170,000Direct labor$110,000Variable manufacturing overhead$200,000Fixed manufacturing overhead$240,000 Sales totaled $825,000 for the year, variable selling and administrative expenses totaled $108,000, and fixed selling and administrative expenses totaled $165,000. There was no beginning inventory. Assume that direct labor is a variable cost. Under absorption costing, the ending inventory for the year would be valued at:
A. $0 B. $180,000 C. $248,250 D. $216,000
The purpose of a contract is to:
a. make it easy to do international business transactions b. encourage innovation c. encourage investment d. give parties confidence that bargained-for exchanges will be enforceable e. give parties confidence that they will make a profit