Connect simulation assignment

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Based on Connect Simulation Assignment

FINA310

The Bubba Corp. had earnings before taxes of $202,000 and sales of $2,020,000. If it is in the 50 percent tax bracket, its after-tax profit margin is:

(a) 5.00%

(b) 7.00%

(c) 8.00%

(d) 7.50 %

In the percentage-of-sales method, if (A/S) and (L/S) both increase,

(a) RNF goes up

(b) More information is needed

(c) RNF goes down

(d) RNF stays the same

When considering Net Working Capital, a project will generally need all the following except:

(a) Some financing in the form of accounts payable.

(b) A balance that represents the investment in net working capital.

(c) Only long-term assets to get the project started.

(d) Some cash on hand to pay any expenses that arise.

(e) An initial investment in inventories and accounts receivable.

Reference no: EM133116896

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