Maggie's Muffins, Inc., generated $2,000,000 in sales during 2013, and its year-end total assets were $1,300,000. Also, at year-end 2013, current liabilities were $1,000,000, consisting of $300,000 of notes payable, $500,000 of accounts payable, and ..
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The Internal Revenue Service is the department of the United States Government responsible for passing tax laws - Two major forms of accounting are cash basis and accrual basis. If the terms "accounts receivable" or "accounts payable" appear on your..
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Shelton, Inc., has sales of $401,000, costs of $189,000, depreciation expense of $54,000, interest expense of $35,000, and a tax rate of 30 percent. (Do not round intermediate calculations.) What is the net income for the firm? Suppose the company pa..
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The efficiency gains resulting from a just-in-time inventory management system will allow a firm to reduce its level of inventories permanently by $379,000. What is the most the firm should be willing to pay for installing the system?
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Advantages of using simulation include: A. a range of possible outcomes presented. B. is good only for single period investments since discounting is not possible. OR C. adjustment for risk in the resulting distribution of net present values. OR D. g..
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Genetic Insights Co. purchases an asset for $10,830. This asset qualifies as a seven-year recovery asset under MACRS. The seven-year fixed depreciation percentages for years 1, 2, 3, 4, 5, and 6 are 14.29%, 24.49%, 17.49%, 12.49%, 8.93%, and 8.93%, r..
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Which of the following correctly define the internal rate of return:
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You've observed the following returns on SkyNet Data Corporation's stock over the past five years: 10 percent, -10 percent, 17 percent, 22 percent, and 10 percent. Suppose the average inflation rate over this period was 1.5 percent, and the average T..
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Assume both portfolios A and B are well diversified, that E(rA) = 14% and E(rB) = 14.8%. If the economy has only one factor and βA = 1 while βB = 1.1, what must be the risk-free rate?
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You’ve observed the following returns on Doyscher Corporation’s stock over the past five years: –28.8 percent, 16.2 percent, 35.4 percent, 3.6 percent, and 22.6 percent. What was the arithmetic average return on the stock over this five-year period?
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We are evaluating a project that costs $816,000, has a 12-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 83,000 units per year. Price per unit is $40, variab..
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Massey Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $380,000 is estimated to result in $145,000 in annual pretax cost savings. The press also requires an initial investment in sp..
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