As a firm progresses through the introduction life-cycle stage, what type of flexible account will it be more likely to use to balance the balance sheet?
a. dividends.
b. growth related assets.
c. issued equity.
d. stock buy-backs.
C
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What will be an ideal response?
What type of account is Construction in Progress?
A) asset B) contra asset C) expense D) receivable
Which is the proper order to show the manufacturers' inventories on a balance sheet?
a. Materials, Work in Process, Finished Goods b. Work in Process, Materials, Finished Goods c. Finished Goods, Materials, Work in Process d. Finished Goods, Work in Process, Materials e. Accounts Receivable, Finished Goods, Materials
Bratton Corporation has provided the following information concerning a capital budgeting project: After-tax discount rate 13%Tax rate 30%Expected life of the project 4 Investment required in equipment$160,000 Salvage value of equipment$0 Annual sales$390,000 Annual cash operating expenses$280,000 One-time renovation expense in year 3$60,000 The company uses straight-line depreciation on all equipment; the annual depreciation expense will be $40,000. Assume cash flows occur at the end of the year except for the initial investments. The company takes income taxes into account in its capital budgeting.See separate Exhibit 13B-1 to determine the appropriate discount factor(s) using table.The net present value of the project is closest to:
A. $75,580 B. $154,000 C. $104,686 D. $196,000