Which of the following will appear as a line item in the traditional format of an income statement?
A) contribution margin
B) total variable costs (manufacturing and non-manufacturing)
C) total fixed costs (manufacturing and non-manufacturing)
D) gross profit
D) gross profit
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The most basic form of tangible relationship exchange is ______.
a. loyalty and trust b. loyalty and friendship c. one’s salary for satisfactory performance d. loyalty for one’s salary
Answer the following statements true (T) or false (F)
1. For a merchandising company, the budgeted total sales equals the expected number of units sold multiplied by the budgeted selling price per unit 2. The inventory, purchases, and cost of goods sold budget determines cost of goods sold for the budgeted income statement, and ending Merchandise Inventory for the budgeted balance sheet. 3. For a merchandising company, budgeted purchases equals cost of goods sold plus beginning merchandise inventory minus ending merchandise inventory. 4. Keeping merchandise inventory at the maximum level that meets the needs of providing goods to customers, with turning over the merchandise inventory efficiently, helps reduce inventory storage costs, insurance costs, and warehousing costs.
The net present value method assumes that all cash inflows can be immediately reinvested at the
a. cost of capital. b. discount rate. c. internal rate of return. d. rate on the corporation's short-term debt.
Blue Heron Company has 40,000 shares of 1% cumulative preferred stock of $200 par and 200,000 shares of $40 par common stock. The following amounts were distributed as dividends: Year 1: $60,000 Year 2: $300,000 What is the amount of dividends paid to common stock in Year 2?
a. $200,000 b. $150,000 c. $120,000 d. $100,000