The year for which companies prepare their financial statements is their fiscal year.
Answer the following statement true (T) or false (F)
True
This is true. A fiscal year can be a calendar year; however, instead of using a calendar year, companies whose business is highly seasonal often choose "slow" periods to end their fiscal year.
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Bouchard Company's stock sells for $20 per share, its last dividend (D0) was $1.00, its growth rate is a constant 6 percent, and the company would incur a flotation cost of 20 percent if it sold new common stock. Which of the following is the cost of issuing new common stock? (Round off the answer to two decimal places.)?
A. ?11.96 percent B. ?12.25 percent C. ?12.63 percent D. ?10.24 percent E. ?11.42 percent
Corporate officers are not liable for violations of the Sherman Act
Indicate whether the statement is true or false
Degeare Corporation's balance sheet and income statement appear below:Comparative Balance Sheet Ending BalanceBeginning BalanceAssets: Current assets: Cash and cash equivalents$35 $28 Accounts receivable 65 77 Inventory 47 40 Total current assets 147 145 Property, plant, and equipment 518 490 Less accumulated depreciation 233 213 Net property, plant, and equipment 285 277 Total assets$432 $422 Liabilities and stockholders' equity: Current liabilities: Accounts payable$61 $54 Accrued liabilities 15 16 Income taxes payable 36 35 Total current liabilities 112 105 Bonds payable 72 100 Total liabilities 184 205 Stockholders' equity: Common stock 82 80 Retained
earnings 166 137 Total stockholders' equity 248 217 Total liabilities and stockholders' equity$432 $422 Income Statement?Sales$590Cost of goods sold363Gross margin227Selling and administrative expense184Net operating income43Gain on sale of plant and equipment13Income before taxes56Income taxes17Net income$39Cash dividends were $10. The company sold equipment for $18 that was originally purchased for $10 and that had accumulated depreciation of $5. The net cash provided by (used in) operating activities for the year was: A. $76 B. $73 C. $43 D. $63
Once adjustments have been made, an ____________________ is prepared to ensure the accounting equation is still in balance and to facilitate preparation of the financial statements.
Fill in the blank(s) with the appropriate word(s).