As a firm's sales grow, its current assets also tend to increase. For instance, as sales increase, the firm's inventories generally increase, and purchases of inventories result in more accounts payable. Thus, spontaneously generated funds arise from transactions brought on by sales increases.
Answer the following statement true (T) or false (F)
True
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Parsa Inc. reported the following results from last year's operations: Sales$14,000,000Variable expenses 9,500,000Contribution margin 4,500,000Fixed expenses 3,800,000Net operating income$ 700,000Average operating assets$7,000,000At the beginning of this year, the company has a $1,100,000 investment opportunity with the following characteristics: Sales$1,980,000 Contribution margin ratio 40% of salesFixed expenses$653,400 The ROI for this year's investment opportunity considered alone is closest to:
A. 21.2% B. 7.0% C. 12.6% D. 72.0%
Boursaw Corporation has provided the following data concerning last month's operations. Purchases of raw materials$33,000Indirect materials included in manufacturing overhead$4,000Direct labor cost$58,000Manufacturing overhead applied to Work in Process$78,000Underapplied overhead$5,000 BeginningEndingRaw materials inventory$10,000$15,000Work in process inventory$56,000$72,000Finished goods inventory$41,000$49,000 Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.How much is the cost of goods manufactured for the month on the Schedule of Cost of Goods Manufactured?
A. $216,000 B. $164,000 C. $144,000 D. $160,000
Use critical thinking whenever you ____.
A. take an action B. decide what to believe C. make a decision D. all of the above
Poor communication is likely if
A. there is no noise in the message channel. B. the source and the receiver don't have personal contact. C. immediate feedback is not possible. D. the encoder and the decoder are not the same person. E. the source and the receiver do not have a common frame of reference.