[The following information applies to the questions displayed below.]  At the end of Year 1, the following information is available for Grumpy, Happy, and Doc Companies. GrumpyHappyDocTotal Assets $2,000,000  $2,000,000  $3,000,000 Total Liabilities  1,400,000   800,000   1,800,000 Stockholders' Equity  600,000   1,200,000   1,200,000 Net Income  118,000   190,000   150,000 Which company has the highest level of debt risk?

A. Grumpy
B. Doc
C. Happy
D. They all have equal debt risk.


Answer: A

Business

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Below are the transactions for the Louisville Company: Proceeds from issuance of bonds payable $635,000 Payment to purchase equipment $275,000 Payment of wages $115,000 Payment of dividends $155,000 Payment to pay off notes payable $195,000 Based on these transactions, what is the net cash flow from financing activities?

a. $285,000 net cash provided by financing activities. b. $275,000 net cash used for financing activities. c. $0, because cash inflows equal cash outflows from financing activities. d. $440,000 net cash provided by financing activities.

Business

Public relations uses publicity, such as news stories and mentions at public events, as a method for influencing the attitudes, opinions, and behaviors of customers. 

Answer the following statement true (T) or false (F)

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The purpose of the "quiet period" a company must observe from the time it files a registration statement with the SEC until after an IPO is complete is to assure that all investors receive the same information

Indicate whether the statement is true or false.

Business

IBM is considering hiring an investment banker who will purchase and subsequently resell an issue of stock for them. This service is called

A) stock brokerage. B) full-service brokerage. C) underwriting. D) churning. E) none of the above.

Business